08/19/2011 – Memorandum of Law in Support of Defendant’s Motion to Dismiss filed in the WL Homes Adversary Proceedings by Time Warner Cable before U.S. Bankruptcy Judge Brendan L. Shannon in the District of Delaware filed by Saul Ewing LLP attorney Lucian B. Murley and Wargi & French LLP attorney Julie C. Jared. Defendant Time Warner Cable Inc. files this motion to dismiss and for sanctions under 28 U.S.C. § 1927 based on Plaintiff’s continued prosecution of a preference action less than the 11 U.S.C. § 547(c)(9) jurisdictional limit. Nothing new in terms of law but the facts alleged are extreme even for mass preference actions.
On January 31, 2011, George L. Miller, Chapter 7, Trustee for the estate of WL Homes, LLC., et al. in the WL Homes LLC Bankruptcy, commenced his bankruptcy preference recovery litigation with the filing of 94 preference complaints. The Trustee has taken care to plead the elements of his bankruptcy preference claim in accord with the hightened pleading standards of Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) and Ashcroft v. Iqbal, 129 S. Ct. 1937 (2009). In particular, the Trustee includes specific factual allegations supporting its claims of the Debtors’ insolvency during the preference period.