Rosenberg v DVI Receivables

Rosenberg v. DVI Receivables XVII, LLC, Case No. 15-2622 (3rd Cir. Aug. 29, 2016)
Section 303(I) of the Bankruptcy Code does not preempt state law claims of non-debtors predicated on the filing of an involuntary bankruptcy petition. The opinion, however, expressly disclaimed any ruling on whether similar claims filed by a debtor would be subject to preemption.
Procedural context:
Reversing and remanding the decision of the District Court of the Eastern District Court of Pennsylvania which had dismissed Rosenberg's complaint based on federal preemption.
Involuntary bankruptcy petitions were filed against Mr. Rosenberg and a number of his medical imaging businesses by DVI Receivables et. al., who had financed his purchase of medical imaging equipment. The involuntary petitions were ultimately dismissed and Mr. Rosenberg filed an adversary proceeding against DVI seeking damages for a bad faith filing pursuant to section 303(I). Mr. Rosenberg received a sizeable judgment on this claim. Later, Mr. Rosenberg's wife and a number of other related non-debtor entities filed the instant complaint against DVI et. al. asserting a claim for tortious interference and alleging that, even though involuntary petitions were not filed against them, they were damaged by the involuntary filings due to the interconnected nature of the businesses and that this was the actual intent of DVI. DVI moved to dismiss on the basis that the tortious interference claim was preempted by the involuntary bankruptcy provisions of the Bankruptcy Code.
Ambro, Jordan, and Scirica

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