IN RE: LIFE PARTNERS HOLDINGS (2019)

United States Court of Appeals, Fifth Circuit.

IN RE: LIFE PARTNERS HOLDINGS, INCORPORATED Debtor. Alan M. Jacobs, As Trustee for Life Partners Creditors' Trust; Life Partners Creditors' Trust, Appellants, v. Root Hospitality Solutions, L.L.C.; John Crooks; K's Marketing, Incorporated; Michael Mishler; Rebecca Teel, Tena Wilson, A Roger O. Whitley Group, Incorporated, A Silver Lining, L.L.C., A.D. Vallett; Company, L.L.C., Adam Burch, Adams Life Brokerage, L.L.C., Alethea Busby, AML Partners, L.L.C., Andrew Walvoord, Andy Hines, Andy L. McJohnston, Annui Corp Services, Incorporated, Anthony Allen, BAAPLIFE1-2013, L.L.C., BAAPLIFE2-2014, L.L.C., Brazos Life Settlement Fund, Brian H. O'Neill, Caperton Enterprises, Incorporated, Charles Peters, Cindy Bulloch, Coastal Equities, Incorporated, Craig Wear Financial Group, L.L.C., Crimson Fund-1, L.L.C., David Norcom, Douglas Wall, Dub Huckabee, Future Planning, Incorporated, G. Steven Williams, Gain Plan Financial, L.L.C., Gary Brosseit, Gbenga Asedeko, Go Financial Services, Incorporated, Health Insure Management, Incorporated, Homer H. Stout, Internet Aces Corporation, Jack M. Pausman, Joe Martinez, John C. Covey Sr., John D. Jones, John Harper, Ken Marko, Kevin Jones, Linda Harper, Windfall Development, Incorporated, William V. Mozek Jr., Mark J. Smith, Matheson Services, L.L.C., Matthew Pashby, MDH Interests, L.L.C., Michael Davis, Michael Eastham, Montclair Properties, Incorporated, Personal Financial Advisors, Incorporated, Phantom Consulting, L.L.C., Tom Grace, Timothy Joyce, Tim McGuire, Todd Shevlin, Timothy Turbeville, Ultimate Wealthcare, Incorporated, Sharon Adams, Roger Lane, R. E. Branch, M.D. Appellees.
IN RE: LPI Financial Services, Incorporated Debtor. Alan M. Jacobs, As Trustee for Life Partners Creditors' Trust; Life Partners Creditors' Trust, Appellants, v. Bagby Investments, L.P. Appellee.
IN RE: LPI Financial Services, Incorporated Debtor. Alan M. Jacobs, As Trustee for Life Partners Creditors' Trust; Life Partners Creditors' Trust, Appellants, v. Stacey Munderloh Appellee.
IN RE: LPI Financial Services, Incorporated Debtor. Alan M. Jacobs, As Trustee for Life Partners Creditors' Trust; Life Partners Creditors' Trust, Appellants, v. Tober Associates, Incorporated Appellee.

No. 18-10051

Decided: June 03, 2019

Before ELROD, HIGGINSON, and ENGELHARDT, Circuit Judges.

Nolan Cornelius Knight, Dennis L. Roossien, Jr., Esq., Munsch Hardt Kopf & Harr, P.C., Dallas, TX, for Appellants Thomas S. Brandon, Jr., Rebecca Kristine Eaton, Esq., Thomas Franklin Harkins, Jr., Esq., Whitaker Chalk Swindle & Schwartz, P.L.L.C., Fort Worth, TX, for Appellees Root Hospitality Solutions, L.L.C., Roger O. Whitley Group, Incorporated, Silver Lining, L.L.C., Adam Burch, Andy L. McJohnston Peter J. Harry, Law Office of Peter J. Harry, P.L.L.C., Dallas, TX, for Appellees John Crooks, K's Marketing, Incorporated, Michael Mishler, Rebecca Teel, Tena Wilson, Caperton Enterprises, Incorporated, Michael Eastham Peter Clifton Lewis, Scheef & Stone, L.L.P., Dallas, TX, for Adams Life Brokerage, L.L.C., Matthew Pashby, Montclair Properties, Incorporated Mark Stromberg, Stromberg Stock, P.L.L.C., Dallas, TX, Roland Gary Jones, Jones & Associates, New York, NY, for Appellees Annui Corp Services, Incorporated, BAAPLIFE1-2013, L.L.C., BAAPLIFE2-2014, L.L.C., Brazos Life Settlement Fund, Crimson Fund-1, L.L.C. Brian H. O'Neill, Pro Se Charles Peters, Pro Se Stephen W. Sather, Barron & Newburger, P.C., Austin, TX, for Cindy Bulloch Patrick Lamont Hughes, Haynes & Boone, L.L.P., Houston, TX, for Appellee Coastal Equities, Incorporated Brian Patrick Shaw, Jr., Esq., Rogge Dunn Group, P.C., Dallas, TX, for Appellee Craig Wear Financial Group, L.L.C. Randall Lyle Rouse, Lynch, Chappell & Alsup, P.C., Midland, TX, for Appellees Dub Huckabee, Future Planning, Incorporated Joseph R. Henderson, Houston, TX, for Appellees G. Steven Williams, Gain Plan Financial, L.L.C. David F. Morris, Carrollton, TX, for Appellees Gary Brosseit, Windfall Development, Incorporated, Roger Lane Gbenga Asedeko, Pro Se George Donald McDonald, Granbury, TX, for Appellee Go Financial Services, Incorporated Homer H. Stout, Pro Se Marilyn Delores Garner, Law Office of Marilyn D. Garner, Arlington, TX, for Appellee Internet Aces Corporation Noreen M. Cabrera, Kaufman Dolowich Voluck & Gonzo, L.L.P., Dallas, TX, for Appellees Jack M. Pausman, John D. Jones, Mark J. Smith John Harper, Pro Se Daniel C. Durand, III, Durand & Associates, Lewisville, TX, for Appellee Ken Marko John Michael Saltarelli, Ross & Matthews, P.C., Fort Worth, TX, for Appellees Kevin Jones, William V. Mozek, Jr. Christopher J. Moser, Esq., Quilling, Selander, Lownds, Winslett & Moser, P.C., Dallas, TX, for Appellee Matheson Services, L.L.C. Gary Ray Sorden, Cole Schotz P.C., Dallas, TX, for MDH Interests, L.L.C. John David Blakley, Dunn Sheehan, L.L.P., Dallas, TX, for Appellee Michael Davis Michael S. Alfred, Hallett & Perrin, P.C., Dallas, TX, for Appellee Tom Grace Timothy Joyce, Pro Se Tim McGuire, Pro Se Steven Richard Dunn, Esq., Dunn Firm, Dallas, TX, for Appellee Todd Shevlin Timothy Turbeville, Pro Se Sharon Adams, Pro Se Charles R. Chesnutt, Sr., Dallas, TX, for Appellee R. E. Branch, M.D.

This case is one of five related adversary proceedings arising out of the Chapter 11 bankruptcies of Life Partners Holdings, Inc.; Life Partners, Inc. (LPI); and LPI Financial Services (collectively, the “LP Entities”), in which the Life Partners Creditors’ Trust asserts claims against various groups of LP Entities Licensees. We described the factual background and much of the relevant procedural history in our recent opinion in Life Partners Creditors’ Trust v. Cowley, No. 17-11477, 926 F.3d 103, 2019 WL 2315028 (5th Cir. May 31, 2019). We note one procedural difference that is material to the disposition of Count 11 in Creditors’ Trust’s pleadings: unlike in Cowley, Creditors’ Trust sought leave to amend Count 11 in a written motion before the district court’s judgment of dismissal. Thus, the Federal Rule of Civil Procedure 59(e) standard does not apply to that claim, and the proposed amended complaint demonstrates that repleading would not have been futile. The district court therefore abused its discretion in declining to grant leave to amend Count 11. See Brown v. Taylor, 911 F.3d 235, 247 (5th Cir. 2018) (district court abused its discretion in denying leave to amend where plaintiff offered a proposed amendment that would not be futile and had not repeatedly failed to cure deficiencies).

Beyond the above distinction, the arguments before the court in this case are substantially the same as those in Cowley, and the live pleadings are parallel in all important respects. Accordingly, we AFFIRM the district court’s judgment of dismissal as to Counts 5, 8, and 12. However, we REVERSE the dismissal of Counts 1–4,¹ 6, 9, 10, and 11 and REMAND them for further proceedings consistent with this opinion.

FOOTNOTES

FOOTNOTE.

1. As in Cowley, we affirm the district court’s dismissal of Count 2 only as to transfers from Life Partners Holdings that occurred before January 20, 2011, and transfers from LPI and LPI Financial Services that occurred before May 19, 2011. We also affirm the district court’s dismissal of Counts 3 and 4 only as to transfers made by Life Partners Holdings before January 20, 2013, and transfers made by LPI and LPI Financial Services before May 19, 2013.

JENNIFER WALKER ELROD, Circuit Judge:* FN* Pursuant to 5th Cir. R. 47.5, the court has determined that this opinion should not be published and is not precedent except under the limited circumstances set forth in 5th Cir. R. 47.5.4.

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