United States Second Circuit

In bankruptcy proceedings wherein plaintiff (the court appointed disbursing agent of a Plan of Reorganization) brought claims against defendants-accountants concerning professional services rendered to corporate bankruptcy debtor, the circuit court finds that: 1) plaintiff had standing to assert debtor's claims under the "adverse interest" exception to the normal rule that a claim against a third party for defrauding a corporation with the cooperation of its management accrues to creditors rather than to the guilty corporation; 2) plaintiff had standing to bring claims as the assignee of interests which the assignor acquired as a pre-bankruptcy creditor; 3) all of the claims pressed by plaintiff were "core proceedings" which were covered by the language of 28 U.S.C. section 157(b) and integrally related to the Proof of Claim which defendant voluntarily submitted against the bankruptcy estate; and 4) defendant waived its right to a jury trial on plaintiff's claims when it submitted its Proof of Claim against the bankruptcy estate and subjected itself to the equitable powers of the bankruptcy court.

Appellate Information

• Decided 06/16/2008
• Published 06/16/2008

Judges

• WESLEY, Circuit Judge:, Before WINTER, SOTOMAYOR, and WESLEY, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellees:
  
• Jay G. Strum, Kaye Scholer LLP (Arthur Steinberg, Robert B. Bernstein, Elisabeth C. Kann, on the brief), New York, NY, for Plaintiff-Appellant-Cross-Appellee., Andrew L. Frey, Mayer, Brown, Rowe & Maw LLP (Sandford I. Weisburst, Mayer, Brown, Rowe & Maw LLP;  Richard F. Broude, P.C.;   and Irwin J. Sugarman, Harry S. Davis, Schulte Roth & Zabel LLP, on the brief), for Defendants-Appellees-Cross-Appellants.