408 F. App'x 477
2d Cir.2011Background
- Pisculli, sole owner of A.N. Leasing Corp., is debtor in bankruptcy proceedings.
- Truck sale proceeds from assets of A.N. Leasing were at issue regarding whether they are property of the bankruptcy estate.
- Pisculli used truck sale proceeds to satisfy debts of J&R Materials Corp., another Pisculli-owned business, and for personal expenses.
- Creditors alleged the truck sale proceeds were transferred to hinder, delay, or defraud creditors after petition filing.
- The bankruptcy court denied discharge under 11 U.S.C. § 727(a)(2)(B); the district court affirmed.
- The Second Circuit reviews de novo legal conclusions and factual findings for clear error.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are the truck sale proceeds property of the bankruptcy estate? | Pisculli contends proceeds were not estate property. | Estate control over proceeds was lacking due to corporate ownership structure. | Proceeds were property of the bankruptcy estate. |
| Did Pisculli transfer proceeds with intent to hinder, delay, or defraud creditors? | Disbursements were in good faith to satisfy business debts. | Disbursements show intent to defraud creditors. | Disbursements demonstrated intent to defraud creditors. |
Key Cases Cited
- In re Cacioli, 463 F.3d 229 (2d Cir. 2006) (standard of review for bankruptcy decisions; de novo conclusions of law)
- In re Duplan Corp., 212 F.3d 144 (2d Cir. 2000) (plenary review of bankruptcy court findings and legal conclusions)
- In re Chalasani, 92 F.3d 1300 (2d Cir. 1996) (strict construction of § 727(a)(2)(B) against objectors)
- In re Bostick, 400 B.R. 348 (Bankr. D. Conn. 2009) (elements of § 727(a)(2)(B) burden of proof)
- Grogan v. Garner, 498 U.S. 279 (U.S. 1991) (preponderance standard for discharge objections)
- United States v. Canova, 412 F.3d 331 (2d Cir. 2005) (credibility determinations in bankruptcy findings deserve deference)