Trustee filed a Complaint to avoid and recover certain funds for the benefit of Debtor’s estate. Defendant filed a Motion to Dismiss arguing that Trustee had not adequately pled causes of action to avoid transfers under an intentional fraud claim or constructive fraud claim. The Court held that to plead intentional fraud, a plaintiff must meet the heightened pleading requirements of Fed.R.Civ.P. 9(b). In complying with Rule 9(b), a plaintiff may plead fraudulent intent generally by pleading one or more of the badges of fraud to meet the required element of intent. The Court further held, that to plead constructive fraud, only the requirements of Fed.R.Civ. 8(a) must be met. A plaintiff does not need to specifically allege facts in a complaint to prove that a debtor received less than reasonably equivalent value when pleading constructive fraud
File:
Date:
12/31/2014