Home Motion Practice American Express Moves BK Court to Dismiss 548 Transfer Claim

American Express Moves BK Court to Dismiss 548 Transfer Claim


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January 03, 2023, US Bankruptcy Court for Middle Tennessee – American Express National Bank files a 12(b)(6) motion in the Tennessee Bankruptcy Court to dismiss the fraudulent transfer complaint of Erica R. Johnson, the Trustee for Debtor Falcon Press, LLC (“Debtor”).

In the adversary complaint, the Trustee asserted a claim against American Express, alleging that payments made by the Debtor to American Express over the two-year period prior to the bankruptcy filing, were avoidable and recoverable as constructively fraudulent transfers under sections 548 and 550 of the Bankruptcy Code. The two-year transfers that the Trustee seeks to avoid and recover from American Express total “at least $1,198,659.10.”

The motion claims that the Trustee’s complaint is devoid of any factual allegations and allegedly fails to support the essential element of Debtor’s insolvency to make a successful claim of fraudulent transfer under section 548. American Express alleges that the Trustee pleads no factual allegations purporting to show that the Debtor had unreasonably small capital or that the Debtor intended or believed that it would be unable to pay its debts as they became due.

American Express claims that the Trustee has made “conclusory allegations” in her complaint and that the complaint should be dismissed in its entirety under Federal Rule of Civil Procedure 12(b)(6).

Johnson v. American Express National Bank, et al. (In re Falcon Press, LLC), AP No. 22-90150, US Bankruptcy Court for Middle Tennessee.