STILLWATER LIQUIDATING LLC v. Gerova Financial Group, Ltd., Nominal Defendant. (2019)

United States Court of Appeals, Second Circuit.

STILLWATER LIQUIDATING LLC, Plaintiff–Appellant, v. NET FIVE AT PALM POINTE, LLC, Net Five Holdings, LLC, Planet Five Development Group, LLC, Net Five South Beach, LLC, Net Five at Kings Hotel, LLC, Net Five at Hallandate, LLC, Boggy Creek Villas, LLC, Net Villas East Lyme, LLC, Net Five-FDA at Islamorada, LLC, 1888 Boggy Creek Road, LLC, Planet Five at Gerova, LLC, Paul Rohan, Eric Halter, Paradigm Credit Corp., Saunders Capital, LLC, Calhoun Commercial, Judge Street Realty, LLC, SFN Dekalb Holdings, LLC, Memphis Blues Acquisition Group, LLC, Redrock Kings, LLC, John R. Daniel, III, Yvette Daniel, III, Stephen J. McDonald, Vicki McDonald, Alma Bank, Defendants–Appellees, 335 Washington Avenue Miami Beach, LLC, 347 Washington Avenue Miami Beach, LLC, Defendants, Gerova Financial Group, Ltd., Nominal Defendant.

18-1151-bk

Decided: September 16, 2019

PRESENT: RICHARD C. WESLEY, DENNY CHIN, JOSEPH F. BIANCO, Circuit Judges.

FOR PLAINTIFF-APPELLANT: DAVID B. GOROFF (Douglas E. Spelfogel and Katherine R. Catanese, on the brief), Foley & Lardner, LLP, New York, New York. FOR DEFENDANTS-APPELLEES: DAVID K. FIVESON, Butler, Fitzgerald, Fiveson & McCarthy, P.C., New York, New York, for Defendants–Appellees SFN Dekalb Holdings, LLC and Judge Street Realty, LLC. JONATHAN NELSON, Dorf & Nelson LLP, New York, New York, for Defendant–Appellee Calhoun Commercial Construction LLC. BRIAN J. GRIECO, McLaughlin & Stern, LLP, Great Neck, New York, for Defendants–Appellees Paradigm Credit Corp., John R. Daniel, III, Yvette Daniel, III, Stephen J. McDonald, and Vicki McDonald. BRUCE MINKOFF, Robinowitz Cohlan Dubow & Doherty LLP, White Plains, New York, for Defendant–Appellee Saunders Capital LLC. CLIFFORD A. KATZ, Platzer, Swergold, Levine, Goldberg, Katz & Jaslow LLP, for Defendant–Appellee Alma Bank. Thomas Alan Draghi and Daniel G. Lyons, Westerman Ball Ederer Miller Zucker & Sharfstein, LLP, Uniondale, New York, for Defendant–Appellee CL–RP Stonecrest LLC.

SUMMARY ORDER

Plaintiff-appellant Stillwater Liquidating LLC (“Stillwater”) is a court-approved entity charged with pursuing recoveries on behalf of creditors of Stillwater Asset Backed Offshore Fund Ltd. (the “Debtor”). Stillwater appeals from a March 30, 2018 judgment of the district court (Ramos, J.) affirming an order of the bankruptcy court (Wiles, B.J.) dismissing claims relating to allegedly fraudulent prebankruptcy transfers of assets and other claims relating to conspiracy, unjust enrichment, and constructive trust. The bankruptcy court explained its reasoning in a 106-page opinion entered September 2, 2016. The district court explained its reasoning in a 27-page opinion and order entered March 30, 2018. We assume the parties' familiarity with the underlying facts, procedural history, and issues on appeal.

Review of an order of a district court issued in its capacity as an appellate court is plenary. In re Manville Forest Prods. Corp., 896 F.2d 1384, 1388 (2d Cir. 1990). The factual determinations and legal conclusions of the bankruptcy court are thus reviewed independently by this Court. Id. The bankruptcy court's findings of fact are reviewed for clear error, and its conclusions of law are reviewed de novo. Id.

After an independent review of the record and relevant case law, we affirm for substantially the reasons articulated by the district court and the bankruptcy court in their thorough and carefully reasoned decisions.

* * *

We have considered all of Stillwater's arguments and conclude they are without merit. For the foregoing reasons, we AFFIRM the judgment of the district court.

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