Bluemark Inc. v. Geeks on Call Holdings Inc.
Nov
19
2009
Ruling
Chapter 11 debtor in possession no longer had standing to bring RICO action after conversion to chapter 7.
Procedural posture
Plaintiff franchisee brought a breach of contract, fraud, and Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C.S. § 1961 et seq., action against defendants, franchisors. The franchisors moved to dismiss. After the franchisee's bankruptcy filing came to light, the court ordered it to show cause why the case should not have been dismissed for lack of standing. The franchisee moved for extension of time. The case was before a magistrate.
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Court
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