IN RE: LIFE PARTNERS HOLDINGS (2019)

United States Court of Appeals, Fifth Circuit.

IN RE: LIFE PARTNERS HOLDINGS, INCORPORATED Debtor. Life Partners Creditors' Trust; Alan M. Jacobs, as Trustee for the Life Partners Creditors' Trust, Appellants, v. 72 Vest Level Three, L.L.C.; A. Nick Coppolo; Donald L. Ashberry; David Barr; Afrain Cavazos; Frederick W. Rust; Harry Green; New Prosperity Investments, Incorporated; Jeff S. Garrett; Abio Financial Group, Incorporated; Advance Level Solutions, L.L.C.; Alchemy Advisory Group, Incorporated; All About Seniors; Alliance Affiliated Equities Corporation; Alvin L. Lee; Bailey Financial; Bay Wine, Incorporated; Business Legacy, Incorporated; Carrie Bitros; Cary Spector; Charles Clarkson; Charter Insurance Brokerage, Incorporated; Chartwell Asset Management, Incorporated; Christine Smith; Clyde Jones; Crossroads Agency; D.R. Saur Financial, Incorporated; Dennis Lagow; Don Wilson; Douglas Hart Cassel; Eagle One Investments, L.L.C., for benefit of Infinity Asset Management, L.L.C.; Ethan Bonar; First Up, Incorporated; Gregory Rains Harper; Gregory Ricks; Heritage Financial and Insurance Services, Incorporated; Hollis Steven Hufstetler, Sr.; Infinity Asset Management, L.L.C.; James Cleary, doing business as Oak Ridge Financials, L.L.C.; Oak Ridge Financials, L.L.C.; James T. Payton; JTA Securities Management, Incorporated, doing business as Titan Securities; Keith West; Legacy Planning Group, Incorporated; Leslie Rhodes; Mark Zouzalik; Middleton; Associates; Pegasus Living Group, Incorporated; Pitts-TRC; Private Asset Group, Incorporated; R Squared, Incorporated; Randal Wallis; Ray Hughes; Resale and Valuation Services, L.L.C.; Robert H. Watlington; Robert Rountree, Jr.; Sheryl Hanson; Silas Hughes, Jr.; Spectrum Advisors, Incorporated; Stephanie M. Lucke; Tax Recovery, Incorporated; Terrance J. Fitch; Thomas Montgomery; Vernon Bell, doing business as Vast Data Systems, Incorporated; Victor Johnson, Appellees.
IN RE: LPI Financial Services, Incorporated Debtor. Life Partners Creditors' Trust; Alan M. Jacobs, as Trustee for the Life Partners Creditors' Trust, Appellants, v. Frederick W. Rust Appellee.

No. 17-11480

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 72 Vest Level Three, L.L.C., A. Nick Coppolo, Donald L. Ashberry, David Barr, Afrain Cavazos John C. Dulske, Esq., Law Offices of Dulske & Gluys, P. C., San Antonio, TX, for Appellee Frederick W. Rust Peter J. Harry, Law Office of Peter J. Harry, P.L.L.C., Dallas, TX, for Appellees Harry Green, New Prosperity Investments, Incorporated, Jeff S. Garrett Charlene Cantrell Koonce, Esq., Scheef & Stone, L.L.P., Dallas, TX, for Appellees Abio Financial Group, Incorporated, Alliance Affiliated Equities Corporation, Alliance Affiliated Equities Corporation, Business Legacy, Incorporated, D.R. Saur Financial, Incorporated, Gregory Rains Harper, Hollis Steven Hufstetler, Sr., Keith West, Legacy Planning Group, Incorporated, Resale and Valuation Services, L.L.C., Sheryl Hanson, Spectrum Advisors, Incorporated, Stephanie M. Lucke, Tax Recovery, Incorporated Roland Gary Jones, Jones & Associates, New York, NY, Mark Stromberg, Stromberg Stock, P.L.L.C., Dallas, TX, for Appellees Advance Level Solutions, L.L.C., Alvin L. Lee, Charles Clarkson, Charter Insurance Brokerage, Incorporated, Chartwell Asset Management, Incorporated Joseph R. Henderson, Houston, TX, for Appellees Carrie Bitros, Clyde Jones, JTA Securities Management, Incorporated Brian Patrick Shaw, Jr., Esq., Rogge Dunn Group, P.C., Dallas, TX, for Appellees Christine Smith, Gregory Ricks Todd Jeffrey Johnston, McWhorter, Cobb & Johnson, L.L.P., Lubbock, TX, for Appellees Crossroads Agency, Leslie Rhodes, Mark Zouzalik Dennis Lagow, Pro Se John Michael Saltarelli, Ross & Matthews, P.C., Fort Worth, TX, for Appellees Don Wilson, Robert H. Watlington, Vernon Bell Douglas Hart Cassel, Pro Se Harmony Ann Mappes, Faegre Baker Daniels, L.L.P., Indianapolis, IN, Douglas David Skierski, Skierski Jain, P.L.L.C., Dallas, TX, for Appellees Eagle One Investments, L.L.C., Infinity Asset Management, L.L.C. Ryan M.T. Allen, Ferguson Braswell Fraser Kubasta, P.C., Plano, TX, for Appellee Ethan Bonar David F. Morris, Carrollton, TX, for Appellees First UP, Incorporated, James Cleary, Oak Ridge Financials, L.L.C., R Squared, Incorporated, Randal Wallis, Thomas Montgomery Shannon A.S. Quadros, Esq., Kilmer Crosby & Walker, P.L.L.C., Houston, TX, for Appellee Heritage Financial and Insurance Services, Incorporated James T. Payton, Pro Se Max Edwin Wright, Kelly, Hart & Hallman, L.L.P., Midland, TX, for Appellee Pitts-TRC Thomas H. Casey, Rancho Santa Margarita, CA, for Appellee Private Asset Group, Incorporated Ray Hughes, Pro Se Andrew G. Edson, Clark Hill Strasburger, Dallas, TX, for Appellee Robert Rountree, Jr. Silas Hughes, Jr., Pro Se Terrance J. Fitch, Pro Se Victor Johnson, Pro Se

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 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). 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, 11, and 12. However, we REVERSE the dismissal of Counts 1–4,¹ 6, 9, and 10 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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