Gruver V Firetech, the Fire Technology People, Inc.
- Summarized by Ryan Heilman , Heilman Law PLLC
- 1 year 4 months ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 23-1769 (3rd Circuit, Sep 26,2024) Not Published
- Tag(s):
-
- Ruling:
- The Third Circuit affirmed the District Court. 1. The Bankruptcy Court had proper jurisdiction even though the plan had already been confirmed and the dispute was not a core proceeding. Because payment on a confirmed Chapter 11 plan qualifies as an integral aspect of the bankruptcy, there was a sufficiently close nexus to the plan to support jurisdiction. 2. Expert testimony is not necessary to assess damages and the "fact" of the damages was not speculative. 3. Setoff was not proper because Defendants' actions caused additional damages. 4. Personal liability is proper under HICPA and UTPCPL.
- Procedural context:
- After Firetech abandoned the project, the Debtors commenced an adversary proceeding in the Bankruptcy Court (post-confirmation of their Chapter 13 plan). After a bench trial, the Bankruptcy Court ruled in favor of the Debtors and recommended entry of a judgment against Firetech and Kincaid. The District Court adopted the Bankruptcy Court's findings of facts and conclusions of law. Firetech and Kincaid appealed, raising the following four issues (i) jurisdiction of the Bankruptcy Court; (2) assessment of damages; (3) failure to setoff damages against insurance proceeds; and (4) personal liability of Robert Kincaid under the Home Improvement Consumer Protection Act (HICPA) and
Unfair Trade Practices and Consumer Protection Law (UTPCPL).
- Facts:
- Debtors, a married couple, confirmed a Chapter 13 plan. After confirmation, a fire rendered their home uninhabitable. They hired defendant FireTech for remediation. FireTech is owned and operated by defendant Robert Kincaid. The Debtors and Firetech had several disagreements about the cost and scope of repairs and Firetech ultimately abandoned the project without completing remediation and repairs. Per the opinion, this was largely due to Firetech's and Kincaid's poor project management and cost overruns.
- Judge(s):
- KRAUSE, BIBAS, and AMBRO, Circuit Judges
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