US Bankruptcy Court NDIL Docket Feed

Mack v. Urquhart – Motion to Dismiss Granted

Ronald R. Peterson, Chapter 7 trustee for Mack Industries and Oak Park Avenue Realty, sought to recover 42 fraudulent transfers totaling $67,659 from Timothy Urquhart and his LLCs (Russet Way Country Club Hills and 154th Street South Holland) in an amended complaint filed after the two-year statute of limitations under 11 U.S.C. § 546(a) had expired. The bankruptcy court granted South Holland's motion to dismiss, finding the amended complaint did not satisfy the relation-back requirements under Rule 15(c)(1)(C) of the Federal Rules of Civil Procedure because South Holland did not receive notice of the action during the period for service and no mistake in identity was established. The decision limits trustees' ability to add new parties or claims to bankruptcy adversary proceedings after the limitations period has run, underscoring the importance of comprehensive initial pleadings in such cases.

Mack Industries v. Chakanava - Fraudulent Transfer Claims

Ronald R. Peterson, Chapter 7 trustee for Mack Industries Ltd. and Oak Park Avenue Realty Inc., filed an adversary complaint seeking to avoid approximately $76,000 in transfers as fraudulent under 11 U.S.C. § 548 and Illinois law. After the original complaint was dismissed with leave to amend, the trustee filed an amended complaint in April 2020 adding 35 new transfers totaling approximately $107,000 made between October 31, 2013 and January 31, 2017. Defendants moved to dismiss arguing the new transfers fell outside the two-year statute of limitations in 11 U.S.C. § 546(a), which expired in March 2019. The court denied the motion, applying Rule 15(c) relation-back principles and finding that whether the statute of limitations bars the new claims cannot be resolved at the pleading stage.

Frances Gecker v. LG Funding LLC - MCA Preference Action

The US Bankruptcy Court for the Northern District of Illinois issued a memorandum opinion on November 2, 2021, granting judgment in favor of LG Funding LLC on all three counts in adversary proceeding number 17 A 00072. Frances Gecker, as Chapter 7 trustee for the jointly administered bankruptcy estates of Network Salon Services LLC and Anthia R. Hill, had sought to recover alleged preferential and constructively fraudulent transfers under 11 U.S.C. §§ 547(b) and 548(a)(1)(B), and to disallow claims filed by LG Funding pursuant to 11 U.S.C. § 502(d). The court rejected all three claims, finding in favor of the defendant merchant cash advance company.