Lefkowitz v. Michigan Trucking, LLC (In re Gainey Corp.)
- Citation:
- BAP 6th Cir. (Case No. 11-8038)
- Tag(s):
-
- Ruling:
- AFFIRMING the bankruptcy court's ruling for an order dismissing the Appellant's (the Liquidation Trustee) adversary complaint for failure to state a claim for relief pursuant to Federal Rule of Civil Procedure 12(b)(6).
- Procedural context:
- In October of 2008, six related entities filed voluntary petitions under chapter 11 of the Bankruptcy Code. Later that same month, an order was entered to jointly administer all six cases. In November 2009, Debtor entered in to a sales agreement for all their assets, which was completed that same month to Michigan Trucking Acquisitions, LLC. ("MTA"). On December 31, 2009, the Court entered an order confirming the Plan. Thereafter, the Liquidating Trustee sued MTA in an adversary proceeding seeking a declaratory judgment that MTA is required to reimburse the insurer for deductibles related to injuries that occurred prior to the closing of the sale. Subsequently, MTA filed a motion to dismiss the adversary proceeding pursuant to Fed. Rule of Civ. Pro. 12(b)(6). The bankruptcy court ruled in favor of MTA, thereby dismissing the adversary proceeding of the Liquidating Trustee. The Liquidating Trustee appeals that decision to the BAP.
- Facts:
- Debtors are privately held Michigan corporation which provides logistical services throughout the US and Canada. Given the nature of debtor's operation, the debtors incurred many claims on account of bodily injuries, property damages and claims for workers compensation. On November 2, 2009, the debtors entered in to a purchase agreement to sell substantially all of debtor's assets to Michigan Trucking Acquisitions, LLC. ("MTA") for $77,800,000.00. The purchase included insurance contracts covering bodily injuries and property damage that were in existence at the time of the closing of the sale, which concluded on November 16, 2009 in favor of MTA's acquisition. Shortly after the plan was confirmed in December of 2009, the Liquidation Trust filed an adversary proceeding against MTA seeking a judgment that MTA is required to reimburse the insurer for deductibles related to accidents which occurred prior to the closing date. MTA countered with a motion to dismiss pursuant to Fed. Rule of Civ. Pro. 12(b)(6).
- Judge(s):
- Fulton, McIvor and Shea-Stonum.
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!
