Bankruptcy: In re National Jockey Club, 06-13247
Adversary: DII Northwest v Th. Carey, 10-000302
Issued Mar. 03, 2011
Judge Pamela Hollis
The Issue: Defendant brought motion to dismiss adversary complaint that sought a turnover of assets based on an alleged breach of fiduciary duty.
The Upshot: Motion granted on both counts; Adversary Complaint dismissed.
The Opinion: First, the Plaintiff failed to allege a basis for its assertion that the target funds were property of the bankruptcy estate. As such, its turnover claim had to be denied. Second, the Plaintiff’s breach of fiduciary claim was barred by the statute of limitations because it was not brought within 5 years of the date on which the claim arose. The so-called continuing violation doctrine did not apply to constructively render the claim timely.
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