Fountainebleau Las Vegas Bankruptcy is Not Finished

Bankruptcy Litigation

Today, nearly five years since the Fountainebleu Las Vegas bankruptcy was initially filed, at the height of the economic downturn and the crest of the real estate crisis, the Trustee Soneet Kapila filed two new adversary proceeding lawsuits seeking to recover alleged preferential transfers made to third parties by one of the debtors.  The two defendants that were sued in two separate preference actions are the internationally known company Honeywell International, Inc. and L.A. Nevada, Inc. dba G&G Systems.

Focusing on the L.A. Nevada, Inc. G & G Systems case, the Trustee was appointed in 2010 and according to the Complaint a demand for the return of the payment was made on March 4, 2011.

A copy of the demand letter is not attached, nor is any contract that establishes the basis upon which the payment to this vendor was made.

As with most of these cases, it is possible that one or more defenses may apply that may reduce, if not eliminate, the claim.  For example, there may be a Ordinary Course of Business Defense, which is when a debt is paid under ordinary terms that would be expected based upon the relationship of the parties.

Another defense that often comes up in these preferential transfer cases is New Value Defense, which states that if new value, either in the form of goods or services, was extended to the Debtor at the time that the payment was made, it may constitute a defense to all or part of the claim.

Either way, it is certain that this party is probably not happy to receive this lawsuit almost five years after the case was initially filed and almost three years after a demand for payment was made and apparently refused.

If you have a bankruptcy litigation question you would like answered, please do not hesitate to contact Eric N. Assouline.

00099212

ASSOULINE & BERLOWE – The BUSINESS LAW Firm

http://www.assoulineberlowe.com

With offices in Miami, Ft. Lauderdale, and Boca Raton

ERIC N. ASSOULINE, ESQ.

ASSOULINE & BERLOWE, P.A.

Intellectual Property, Labor & Employment Law, Bankruptcy, Commercial Litigation, and Corporate Law

Miami · Ft. Lauderdale · Boca Raton

Super Lawyers
Eric N. Assouline
Business Litigation

 

Leave a comment

Filed under Bankruptcy, Business Litigation

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s