Brookview Apartments, L.L.C. v. Bronson Family Trust (In re Know Weigh, L.L.C.)

I. INTRODUCTION

Two related motions are pending before the Court in this adversary proceeding. The first is Defendants’ Motion to Dismiss Complaint Pursuant to Federal Rule of Civil Procedure 12(b)(1), (5) and (6) and 11 U.S.C. §§ 544 , 548 (the “Motion To Dismiss”), filed by the Bronson Family Trust, David Bronson, Nancy Bronson, and Joslyn Bronson (collectively, the “Defendants”). Adv. Dkt. 175. The other is the Plaintiffs’ Motion For Authorization Nunc Pro Tunc To Pursue Estate Claims To The Extent Further Authorization Is Required (the “Authorization Motion”) filed by Brookview Apartments, L.L.C., Mike Hoer, and Laurie Hoer (collectively, the “Plaintiffs”). Adv. Dkt. 192.

Defendants argue that the complaint in this adversary proceeding (the “Complaint”) should be dismissed because: (i) the Court does not have jurisdiction over the avoidance claims asserted pursuant to the Bankruptcy Code following dismissal of the underlying chapter 11 bankruptcy case, (ii) the Court should not exercise its discretion to retain jurisdiction over the complaint following dismissal of the underlying bankruptcy case, (iii) Plaintiffs do not have standing to pursue the avoidance claims…