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Giuliano v. U.S. Nursing Corp. (In re Lexington Healthcare Group Inc.)

Giuliano v. U.S. Nursing Corp. (In re Lexington Healthcare Group Inc.)

Ruling
Court dismissed (with leave to amend) trustee's section 502(d) claim since the trustee had not sufficiently pled the related fraudulent transfer claims.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor asserting avoidance of fraudulent transfers, unjust enrichment, and disallowance of the creditor's claim pursuant to 11 U.S.C. § 502(b) and (d). The debtors had hired the creditor to provide temporary nursing staff for its facilities. The trustee alleged, inter alia, that the creditor overcharged the debtors. The creditor moved to dismiss.

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opinion summary, case decided on February 02, 2006 , LexisNexis #0406-118