Civil Procedure Keyed to Cound
Granfinanciera, S.A. v. Nordberg
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The Chase & Sanborn Corporation filed a petition for reorganization under Chapter 11 in 1983. A plan of reorganization was vested in Nordberg (Respondents) the trustee in bankruptcy. Respondents filed suit against Petitioners, Granfinanciera, S.A., alleging that Defendant had received $1.7 million from Chase & Sandborn’s corporate predecessor within one year of the date its bankruptcy petition was filed. Respondents sought to avoid what it alleged were constructive and actually fraudulent transfers and to recover damages, costs and expenses. The district court referred the proceedings to the bankruptcy court. Respondents served a summons on Petitioners. In their answer to the complaint, both Petitioners requested a trial by jury on all triable issues. The bankruptcy judge denied the requests. Following a bench trial, the court dismissed with prejudice, Respondent’s actual fraud claim, but entered judgment for Respondents on constructive fraud claim in the amount of $1,500,000 against Granfinanciera and $180,000 against Medex. The district court affirmed along with the court of appeals.
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