Grant, Konvalinka & Harrison, PC v. Banks (In re McKenzie)

Citation:
Nos. 12-5874/5875/5876
Tag(s):
Ruling:
Affirmed order of district court dismissing two adversary complaints filed by debtor's law firm against bankruptcy trustee and lawyers representing trustee alleging malicious prosecution and abuse of process on the basis of quasi-judicial immunity, and denying motions for leave to file a third complaint in state court and to alter, amend or set aside that order.
Procedural context:
Appeal from order of district court affirming bankruptcy court's dismissal of adversary proceedings filed by debtor's law firm against bankruptcy trustee and its counsel.
Facts:
Bankruptcy trustee for bankruptcy case of McKenzie brought three actions against debtor's law firm. The first sought turnover of documents under Section 542, and was dismissed after the parties entered into a protective order and the law firm made certain documents available. The second sought sanctions for violation of the automatic stay and avoidance of a fraudulent transfer with respect to a post-petition transfer of real property by an entity in which the debtor had a 50% interest to an entity in which debtor had no interest. The avoidance action was dismissed on the merits and a motion for relief from judgment was denied. The third was a complaint filed in state court alleging breach of fiduciary duty, assisting the breach of fiduciary duty and civil conspiracy to commit fraud in connection with the same transfer of real property that was the basis of the avoidance action. This action was also dismissed. The debtor's law firm then filed actions against the trustee and its counsel alleging malicious prosecution and abuse of process and requested leave to file those actions in state court. The bankruptcy judge dismissed the actions based on quasi-judicial immunity, and failure to state a claim.
Judge(s):
Martin, Guy & McKeague

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