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Rule 7012

In re Aidas Paradise LLC

Ruling
Bank's motion to strike or dismiss debtor's pleadings in adversary proceeding and motion for equitable subordination denied as procedurally improper.
Procedural posture

Debtor sought to equitably subordinate a bank's unsecured deficiency claim in an adversary complaint and a corresponding motion to equitably subordinate, arguing that the bank unjustifiably thwarted debtor's attempt to evict a restaurant and improperly refused to allow debtor to timely release the restaurant space. The bank argued it was merely acting as a prudent lender, and filed a motion to motion to strike or to dismiss debtor's motion.

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Commercial opinion summary, case decided on January 14, 2013 , LexisNexis #0213-034

Pope v. Bataille (In re Bataille)

Ruling
Nondischargeability proceeding dismissed where creditor abandoned underlying state court action against debtor.
Procedural posture

Creditor filed a complaint against chapter 7 debtor seeking a determination that a debt was nondischargeable under 11 U.S.C.S. § 523(a)(2)(A) and /or (a)(7). The debtor filed a motion to dismiss pursuant to Fed. R. Bankr. P. 7012, which the court treated as a motion for summary judgment under Fed. R. Bankr. P. 7056.

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Consumer opinion summary, case decided on February 16, 2012 , LexisNexis #0312-104

Threshold Entmt Inc. v. Midway Games Inc.)

Ruling
Suit between two unrelated non-debtor third parties dismissed.
Procedural posture

Plaintiff, an alleged holder of intellectual property interests, brought this adversary proceeding against defendants, affiliated debtors, seeking declaratory relief as to certain license and intellectual property rights relating to a series of debtors' videogames. Plaintiff moved to substitute the purchaser of debtors' assets as defendant pursuant to Fed. R. Civ. P. 25. Plaintiff also moved to transfer the Adversary.

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Commercial opinion summary, case decided on March 29, 2011 , LexisNexis #0411-133

Mosqueda v. Deutsche Bank Natl Trust Co. (In re Mosqueda)

Ruling
Debtors' fraud proceeding against successor to lender dismissed.
Procedural posture

Chapter 13 debtors filed an amended complaint with two causes of action: fraud and a request for declaratory relief for reformation of contract against defendant, the successor to a lender. The successor filed a motion to dismiss under Fed. R. Civ. P. 12(b)(6) and Fed. R. Bankr. P. 7012.

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Consumer opinion summary, case decided on March 09, 2011 , LexisNexis #0411-096

Smith v. Spohn (In re IFS Fin. Corp.)

Ruling
Fraudulent transfer complaint in adversary proceeding was sufficiently plead even though only one paragraph was specific to alleged transferee.
Procedural posture

Plaintiff trustee filed an adversary proceeding to recover alleged fraudulent transfers to defendants, an investor and his sister. The investor filed a motion to set aside a default and a motion to dismiss for improper service. The court set aside the default, but found that the investor was properly served. The investor filed a motion for more definite statement pursuant to Fed. R. Civ. P. 12(e), made applicable by Fed. R. Bankr. P. 7012.

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Commercial opinion summary, case decided on December 09, 2009 , LexisNexis #0110-138

Dixon v. American Cmty. Bank & Trust (In re Gluth Bros. Constr.)

Ruling
Trustee allowed to replead inadequate fraud complaint in adversary proceeding.
Procedural posture

Defendant creditor, the debtor's primary bank, moved to dismiss the adversary complaint brought by plaintiff chapter 11 trustee, and to strike certain claims. At issue was whether the trustee adequately plead the claims for relief under Fed. R. Civ. P. 8, or 9(b) as to claims alleging fraud, and should therefore be dismissed under Fed. R. Civ. P. 12(b)(6).

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Commercial opinion summary, case decided on November 25, 2009 , LexisNexis #1209-134

Dixon v. Ruth (In re Gluth Bros. Constr.)

Ruling
Fraudulent transfer proceeding dismissed with leave to amend given insufficient allegations of insolvency.
Procedural posture

Plaintiff trustees of a creditor trust under a bankruptcy reorganization plan brought an adversary proceeding against defendants, an individual and entities with which the individual was affiliated, seeking to avoid an allegedly fraudulent transfer and postpetition transfers of property of the bankruptcy estate. Defendants moved to dismiss the complaint for failure to state a claim.

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Commercial opinion summary, case decided on November 19, 2009 , LexisNexis #1209-135

Wright v. Vanderbilt Mortg. & Fin. Inc.

Ruling
Debtor lacked standing to pursue previously unscheduled prepetition cause of action.
Procedural posture

Plaintiff debtor filed an amended adversary complaint against defendants, her mortgage lender, its law firm, and related parties for, among other claims, willful violation of the automatic stay. The debtor had not scheduled any of her prepetition causes of action anywhere in her bankruptcy papers. The defendants filed a motion to dismiss under Fed. R. Civ. P. 12(b)(6) and Fed. R. Bankr. P. 7012.

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Consumer opinion summary, case decided on October 30, 2009 , LexisNexis #1209-065

Honey Dew Assocs. v. Monaco (In re Monaco)

Ruling
Complaints in denial of discharge proceeding were sufficiently plead.
Procedural posture

Plaintiff franchiser sued defendant debtors, seeking to deny their discharges pursuant to 11 U.S.C. § 727(a)(2)(A), (a)(3) and (a)(4)(A), or, alternatively, to except the debt owed to the franchisor from discharge pursuant to 11 U.S.C. § 523(a)(2)(A), (a)(6) and (c)(1). The debtors moved to dismiss the complaint pursuant to Fed. R. Bankr. P. 7009 and 7012.

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opinion summary, case decided on August 16, 2006 , LexisNexis #0906-117