Case Summaries

[05/08] In re: Straightline Invs., Inc.
A judgment under 11 U.S.C. section 549(a) avoiding the transfer to appellant of corporate bankruptcy debtor's accounts receivable which had a face value of approximately $200,600 is affirmed over appellant's claims that: 1) the transfer of accounts receivable was not an avoidable transfer because there was no depletion or diminution of debtor's estate; 2) the transfer was an outright sale of receivables in the ordinary course of business, and the defenses of recoupment and earmarking should apply to bar recovery by the trustee; and 3) even if it was avoidable, the wrong measure of recovery was awarded.

[05/06] Pludeman v. N. Leasing Sys., Inc.
The court of appeals rules that plaintiffs sufficiently pleaded a cause of action for fraud against individually-named corporate defendants pursuant to CPLR 3016(b) where it was not unequivocal, as a matter of law, that a finder of fact could not reasonably infer the requisite knowledge or participation by the individual defendants in an act of fraud.

[05/05] US v. Edwards
In a prosecution for wire fraud and related crimes, defendant's conviction is affirmed over claims that: 1) the district court erred in denying his motion for judgment of acquittal made after he rested his defense; 2) he was denied a fair trial and the ability to confront witnesses when the district court permitted several prosecution witnesses to remain in the courtroom and listen to testimony before they took the witness stand; 3) the court erred in denying a motion to suppress certain documents submitted to the SEC during its investigation of a sale and lease-back program; and 4) the court's jury instructions constructively amended the indictment. However, defendant's sentence is vacated and remanded for a new sentencing hearing where, although defendant was convicted of one count of conspiracy to commit money laundering and multiple counts of wire fraud and money laundering, he only received one sentence.

[05/01] Jericho Water Dist. v. One Call Users Council, Inc.
With respect to Gen. Bus. Law section 761, which requires apportioning the costs of the "one-call notification system" among the operators of underground facilities who belong to it, but exempts "municipalities" from paying a share of the costs, the court of appeals rules that a "water district" is not a municipality for these purposes and must pay its share of the cost.

[03/11] In Re: Strack
In Chapter 7 bankruptcy proceedings, a decision finding a particular debt dischargeable is reversed where: 1) the debt arose by reason of debtor's "defalcation," or nonfraudulent default, while he was acting in a fiduciary capacity; and 2) consequently, 11 U.S.C. section 523(a)(4) renders the debt non-dischargeable.

More...