In re: PRIME METALS U.S.A., INC.,
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- CC-22-1222-CFL (9th Circuit, Dec 13,2023) Not Published
- Tag(s):
-
- Ruling:
- The U.S. Bankruptcy Appellate Panel of the Ninth Circuit (BAP) affirmed the grant of summary judgment to Hyundai Steel Company (Hyundai) by the U.S. Bankruptcy Court
for the Central District of California (BC) in an appeal by the trustee (TR) for Prime Metals U.S.A., Inc. (DR), a chapter 7 debtor, even though the BAP deemed the BC to have made improper determinations regarding credibility, truthfulness, relevance, and personal knowledge, deeming those mistaken conclusions to be harmless.
- Procedural context:
- On November 17, 2017, the DR filed a voluntary chapter 7 bankruptcy petition. Subsequently, the TR filed an adversary complaint (Complaint) against Hyundai that (as amended) alleged eleven claims for relief: (1) avoidance and recovery of intentional fraudulent transfers pursuant to §§ 544, 548, 550, and 551; Cal. Civ. Code §§ 3439.04, 3439.07, 3439.08, and 3439.09; (2) avoidance and recovery of constructive fraudulent transfers pursuant to §§ 544, 548, 550, and 551; Cal. Civ. Code §§ 3439.04, 3439.07, 3439.08, and 3439.09; (3) avoidance and recovery of estate property pursuant to § 542; (4) avoidance of preferential transfers pursuant to § 550; (5) recovery of avoided transfers pursuant to § 550; (6) declaratory judgment regarding the existence of an alter ego relationship between Hyundai and the DR; (7) price fixing and collusion between competitors; (8) attempted monopolization and conspiracy to monopolize; (9) unfair competition; (10) collusion to restrain trade; and (11) fraud. Upon consideration of Hyundai's motion to dismiss, the BC granted its motion in part, finding that the TR's claims 1-6 were adequately pled but dismissed claims 7-11 without leave to amend. The TR did not challenge the latter findings. Following the close of discovery, Hyundai filed a motion for summary judgment, arguing that the TR had not presented sufficient evidence to raise a triable issue as to any of claims 1-6. The BC granted this motion after a series of evidentiary decisions.
- Facts:
- Started in 2008 as a California company, the DR engaged in trading and processing scrap metal. In July 2012, Hyundai began purchasing scrap steel from the DR; eventually, it
became the DR's largest customer, accounting for more than 80% of Prime’s
sales. Thereafter, the DR entered into a series of questionable business transactions that "may (or may not) have benefitted Hyundai."
- Judge(s):
- Frederick P. Corbit; Robert J. Faris; and William J. Lafferty III
ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!
