Case Conclusion Date:July 10, 2012
Practice Area:Bankruptcy / Chapter 11
Outcome:Denial of motion to dismiss.
Description:Corporate Chapter 11 debtor was sole beneficiary of a Massachusetts nominee realty trust. Bank moved to dismiss on bad faith grounds that Debtor was neither owner of the property nor an obligor to the bank's debt. Debtor argued that under prevailing law, it was the beneficial owner of the property, and as a beneficiary of the trust, was liable on trust debts. Court held that Debtor was the beneficial owner of the property, was liable for the debts, and that the case was not filed in bad faith.