08/12/2011 – Memorandum of Law in Support of Defendant’s Motion to Dismiss filed in the Linens n Things Adversary Proceedings by Liberty Mutual Insurance Company before U.S. Bankruptcy Judge Christoper S. Sontchi in the District of Delaware filed by Seitz, Van Ogtrop & Green, P.A. (Wilmington, DE) attorney R. Karl Hill; and Choate Hall & Stewart LLP (Boston, MA) attorneys Douglas R. Gooding and Mark A. DeFeo.
Defendant, Liberty Mutual Insurance Company (“Liberty”) seeks dismissal of a preferential transfer recovery action filed by Charles M. Forman, the Chapter 7 Trustee (the “Trustee”) of the substantively-consolidated estate of Linens Holding Co., et. al. (the “Debtors”). The Trustee seeks to avoid and recover two transfers totaling $419,318. Liberty argues that the Trustee has failed to make the required factual averments with respect to the 547(b)(5) element of an avoidance claim – i.e. that the Defendant received more than it would have received in a Chapter 7 liquidation had the pre-petition transfer not been made. In fact, the Defendant asserts that it was a fully secured creditor. Defendant’s implication is that the complaint would not have been filed if the Trustee had done the investigation necessary to meet the Iqbal/Twombley pleading standards. Registered users click here to see a copy of this brief.