A Debtor’s Sole Shareholder Seeks Dismissal of Trustee’s Complaint Concerning Breach of Fiduciary Duty
October 11, 2021, District of Pennsylvania – Defendants John Hess and DBC Construction, LLC, moves the Court according to Fed. R. Civ. P. 12(b)(6) to dismiss Counts I, III, V, and VI of Trustee Jeffrey J. Sikirica’s complaint for failure to state a claim on which relief can be granted.
Earlier this year, on August 18, 2021, Trustee Sikirica for the bankruptcy estate of Debtor Dynamic Building Corp., (“DBC”) by and through its counsel, Thomas E. Reilly, Esquire, and Thomas E. Reilly, P.C., brought an adversary proceeding against Debtor’s sole shareholder and director, John M. Hess and DBC for alleged breach of fiduciary duty and avoidance of preference transfers. The Trustee also sought to re-characterize the $300,000 of the Debtor’s proof of claim number 10-1 as Hess’ contribution of equity to the insolvent DBC and not as a loan with the same priority in distribution to other creditors.
In re Dynamic Building Corp, Case No. : 19-23263-GLT