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Siskey v. Kerr (In re Siskey Hauling Co., Inc.), AP 10-6493, Doc. #38

Order Denying Defendant’s Motion to Dismiss.  Plaintiff, the Chapter 7 Trustee, commenced adversary proceeding to avoid alleged fraudulent transfers between Debtor and Defendant under 11 U.S.C. § 548(a)(1)(A).  Defendant moved to dismiss based on failure to state a claim or, in the alternative, for a more definitive statement.  The Court ruled that Plaintiff stated a valid claim because Plaintiff alleged fraudulent transfers with sufficient particularity to allow an inference that Defendant was liable.  First, Plaintiff alleged the parties involved, their insider relationships, the date, amount, and method of transfers, and the condition of indebtedness between the parties.  Moreover, Plaintiff set forth adequate badges of fraud to allow an inference of fraudulent intent, such as a subsequently insolvent transferor and the transfer of assets to or for the benefit of an insider.  Finally, requiring Plaintiff to make a definitive statement was inappropriate. Plaintiff plead sufficient factual detail and clear legal bases.  Thus, the complaint was not so vague or ambiguous as to be unintelligible, and Defendant was able to respond. 

File: 
Date: 
01/06/2011