The court granted in part and denied in part the Defendants’ Rule 12(b) motion to dismiss the Debtor’s Amended Complaint. Specifically, the court dismissed Count I based upon a prior order entered in the bankruptcy case. However, the court did not dismiss Count II or Count III, because the Debtor stated plausible claims upon which relief can be granted and the Defendants failed to provide support to the contrary.
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Honorable David L. Bissett
In approving the Chapter 7 trustee’s compromise of a claim filed against the estate, the court finds the proposed settlement reasonable under the circumstances of the case. Notably, the settlement ultimately resulted in a net benefit to the estate and was critical in allowing the trustee to close a significant sale of estate property.
The court dismissed the Plaintiffs’ motion for summary judgment to find a debt non-dischargeable under 11 U.S.C § 523(a)(4). The court found that the Plaintiff failed to meet its burden of proving “defalcation” in accordance with Bullock v. BankChampaign, N.A., 569 U.S. 267 (2013) which required the Plaintiff to prove a heightened culpable state of mind requirement involving knowledge of, or gross recklessness in respect to, the improper nature of the relevant fiduciary behavior.
The court found that the West Virginia Computer Crime and Abuse Act applied to telephone calls, and denied the defendant’s motion to dismiss a claim for damages under it. The court also found that the plaintiffs insufficiently pled their claims for intentional infliction of emotional distress and invasion of privacy.
Considering competing proposed Chapter 11 plans, the court finds both plans to be confirmable. Ultimately, the court confirms the Debtor’s proposed plan of reorganization based upon overwhelming support from the creditor body.