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Applied Machinery Rentals LLC v. Total Equipment & Rental of El Paso LLC - Motion to Dismiss Denied

The United States Bankruptcy Court for the Western District of North Carolina denied a motion to dismiss filed by Total Equipment & Rental of El Paso LLC in adversary proceeding 25-03074. Cole Hayes, Chapter 7 Trustee for the bankruptcy estate of Applied Machinery Rentals LLC, brought claims against the defendant related to a Ponzi scheme operated by the debtor's sole member, Garth Errol McGillewie Jr. The court accepted the factual allegations in the Amended Complaint as true for purposes of the motion to dismiss analysis.

Bankruptcy Court Denies Motion to Revise Order Dismissing Third-Party Claim

The United States Bankruptcy Court for the Western District of North Carolina denied Luis Salvador Perez's Motion to Revise, which sought either Rule 54(b) certification to make immediately appealable an order dismissing his unfair and deceptive trade practices claim against third-party defendant Fernando Ycaza with prejudice, or alternatively, modification of the dismissal from 'with prejudice' to 'without prejudice.' The court, applying Fourth Circuit precedent, found Perez failed to carry his burden of demonstrating that the undue hardship exception to the interlocutory-appeal presumption warranted either relief. Ycaza remains dismissed with prejudice from the adversary proceeding; Perez's remaining claims against Ameris Bank proceed to resolution before the court may issue a final judgment.

Applied Machinery Rentals LLC v. Big B Crane LLC - Ponzi Scheme Dismissal

The United States Bankruptcy Court for the Western District of North Carolina granted Defendants' motion to dismiss Defendant Bruce Basden from adversary proceeding Adv. No. 25-03073, filed by Chapter 7 Trustee Cole Hayes against Big B Crane LLC and Bruce Basden. The dismissal comes after voluntary dismissal of Plaintiff's fourth and fifth claims for relief, leaving only the first through third claims pending against Big B Crane LLC. The underlying bankruptcy case (Case No. 23-30461) involves Applied Machinery Rentals, LLC, which operated a Ponzi scheme from approximately 2019 until the death of its principal Garth Errol McGillewie Jr. in 2023.