Section 548 Fraudulent transfers and obligations (Judge Gargotta)
Crescent Resources Litigation Trust v. Nexsen Pruet, LLC (Jan. 23, 2012)
Issue: Issue: Whether the Litigation Trust’s complaint alleging preferential transfers under § 547 and fraudulent transfers under § 548 sufficient to withstand a Rule 12(b)(6) motion to dismiss.
Holding: Trust’s § 547 preferential transfer claim was dismissed without prejudice because it failed to sufficiently plead the existence of an antecedent debt. Trust’s § 548 fraudulent transfer claim was dismissed without prejudice because the Trust did not plead specific facts to allow the Court to draw a reasonable inference of insolvency or of reasonably equivalent value.
Crescent Resources v. Burr (July 22, 2011)
Issue: Does the Plan of Reorganization “specifically and unequivocally” retain the causes of action alleged in the Complaint?
Holding: This Court finds that (1) the Plan preserved the claims made in the Complaint under Sections 544, 548, and 550 and turnover claims with language which was specific and unequivocal, (2) the Plan does not preserve the claims made in the Complaint under “state fraudulent transfer law,” and (3) the Court grants leave for the Plaintiff to amend the Complaint consistent with this Opinion. The Defendant’s Motion to Dismiss should be DENIED in part and GRANTED in part.