Articles tagged with: Bankruptcy Preference Pleading

Articles, Opinions, Motions, Sample Complaints Re Pleading of Elements of Bankruptcy Preference Transfer Avoidance in Bankruptcy Code Sec 547(a)

When a Chapter 7 Trustee’s Failure to Plead a Preference Reaches Inexplicability

In a rare motion practice loss for a Chapter 7 Trustee, District of Delaware Bankruptcy Judge Brendan Linehan Shannon grants the motion of Defendant International Securities Exchange (“ISE”) to dismiss a bankruptcy preference avoidance complaint for failure to state a claim for relief.   Judge Shannon holds that the Chapter 7 trustee’s Section 547 preferential transfer count in its amended complaint fails to sufficiently identify the nature of the antecedent debt.  Giuliano v. International Securities Exchange, Adv. Proc. No. 12-50921 Dkt No. 48 (Bankr.D. Del. May 1, 2013).  Unfortunately, procedural posture and factual context dispel any comfort preference defendants might find in the holding.    

Marty Shoes Holdings, Inc. Bankruptcy: George L. Miller, Chapter 7 Trustee v. Brown Shoe Company, Inc. – Defendant’s Reply Brief in Support of Its Motion to Dismiss Complaint

08/29/2011 – Defendant’s Reply Brief in Support of Its Motion to Dismiss Complaint filed in the Marty Shoes Holdings, Inc. Adversary Proceedings by Brown Shoe Company, Inc. before U.S. Bankruptcy Judge Kevin J. Carey in the District of Delaware filed by Morris, Nichols, Arsht & Tunnell LLP (Wilmington, DE) attorneys Donna Culver and Andrew R. Remming; Bryan Cave LLP (St. Louis, MO) attorney Cullen K. Kuhn.

Defendant’s reply hammers home two basic points: a Chapter 7 trustee is not excused from complying with the established standards in Delaware Bankruptcy Court governing preference complaints; and discovery to get the facts needed to amend Plaintiff’s complaint is not permitted. Defendant’s discussion of the second point and citations of authority in support follow.