FRAUDULENT CONVEYANCES Nassau Academy of Law CLE Live ...

394 B.R. 721 Page 4394 B.R. 721, 50 Bankr.Ct.Dec. 192(Cite as: 394 B.R. 721)material consideration in deciding whether this third partyis "necessary party" on theory that court cannot accordcomplete relief among existing parties in hisabsence. Fed.Rules Bankr.Proc.Rule 7019, 11 U.S.C.A.;Fed.Rules Civ.Proc.Rule 19(a)(1)(A), 28 U.S.C.A.[24] Bankruptcy 2159.151k2159.1 Most Cited CasesFor joinder of absent third party to be required on theorythat adjudication in his absence may, as practical matter,impair or impede his ability to protect some interest thathe has in subject of litigation, the impact of any adjudicationon his interest must be direct and immediate; merepossibility of collateral estoppel is not enough, if it cannotbe shown that some outcome of federal litigation which isreasonably likely can preclude absent party with respectto some issue material to absent party's rights or dutiesunder standard principles governing effect of prior judgments.Fed.Rules Bankr.Proc.Rule 7019, 11 U.S.C.A.;Fed.Rules Civ.Proc.Rule 19(a)(1)(B)(i), 28 U.S.C.A.[25] Bankruptcy 272351k2723 Most Cited CasesTransferee that retains title to or an interest in the propertyconveyed is "necessary party" to fraudulent transfer actionagainst subsequent transferee. 11 U.S.C.A. §§ 548, 550;Fed.Rules Bankr.Proc.Rule 7019, 11 U.S.C.A.; Fed.RulesCiv.Proc.Rule 19, 28 U.S.C.A.[26] Bankruptcy 272351k2723 Most Cited CasesEarlier transferee who has parted with all interest in thetransferred property is not "necessary party" in suitagainst subsequent transferee. 11 U.S.C.A. §§ 548, 550;Fed.Rules Bankr.Proc.Rule 7019, 11 U.S.C.A.; Fed.RulesCiv.Proc.Rule 19, 28 U.S.C.A.[27] Bankruptcy 2159.151k2159.1 Most Cited Cases"Multiple liability" clause of Federal Rule of Civil Proceduredescribing circumstances under which joinder ofabsent third party is required is intended to protect thedefendant against inconsistent obligations, not inconsistentadjudications. Fed.Rules Bankr.Proc.Rule 7019, 11U.S.C.A.; Fed.RulesCiv.Proc.Rule 19(a)(1)(B)(ii), 28 U.S.C.A.[28] Bankruptcy 216251k2162 Most Cited CasesGenerally, leave to amend should be freely granted whenjustice so requires, unless it would be futile. Fed.RulesBankr.Proc.Rule 7015, 11 U.S.C.A.; Fed.RulesCiv.Proc.Rule 15(a), 28 U.S.C.A.[29] Bankruptcy 216251k2162 Most Cited CasesDecision whether to grant leave to amend pleading iscommitted to trial court's discretion. Fed.RulesBankr.Proc.Rule 7015, 11 U.S.C.A.; Fed.RulesCiv.Proc.Rule 15(a), 28 U.S.C.A.[30] Bankruptcy 272451k2724 Most Cited CasesDeficiencies in fraudulent transfer avoidance complaintfiled by unsecured creditors' committee, consisting ofcommittee's failure to particularize the transfers that itcontended were made with actual fraudulent intent and itsfailure to plead facts necessary to support inference thatinitial transferors had actual or constructive knowledge ofscheme by debtors' principals to immediately transfermuch of what they received for less than reasonablyequivalent value to affiliates, as required to permit collapsingof transactions, were type of deficiencies thatcommittee might be able to cure, such that committeewould be granted leave to amend. Fed.RulesBankr.Proc.Rule 7015, 11 U.S.C.A.; Fed.RulesCiv.Proc.Rule 15(a), 28 U.S.C.A.*725 Susman Godfrey LLP, Stephen D. Susman, Esq.,Jacob W. Buchdahl, Esq., Jonathan J. Ross, Esq., ofCounsel, New York, NY, Attorneys for the OfficialCommittee of Unsecured Creditors.Hahn & Hessen LLP, Steven J. Mandelsberg, Esq.,Joshua I. Divack, Esq., Charles Loesner, Esq., of counsel,New York, NY, Attorneys for JPMorgan Chase Bank,N.A.Cadwalader, Wickersham & Taft LLP, Evan R. Fleck,Esq., Gregory M. Petrick, Esq., Ingrid Bagby, Esq., PeterM. Friedman, Esq., of counsel, New York, NY, Attorneysfor ABN Amro Bank N.V.Reimer & Braunstein LLP, Paul S. Samson, Esq.,Meegan B. Casey, Esq., Jeffrey D. Ganz, Esq., of counsel,Boston, MA, Attorneys for Bank of America, N.A.Phillips Lytle LLP, William J. Brown, Esq., Paul K.Stecker, Esq., Allan L. Hill, Esq., of counsel, New York,NY, Attorneys for HSBC Bank USA.© 2009 Thomson Reuters. No Claim to Orig. US Gov. Works.