In re Bayou Group, LLC
Decision Date | 16 October 2008 |
Docket Number | Adversary No. 06-08435A.,Adversary No. 06-08332A.,Adversary No. 06-08403A.,Adversary No. 06-08494A.,Adversary No. 06-08320A.,Adversary No. 06-08422A.,Bankruptcy No. 06 B 22306(ASH).,Adversary No. 06-08318A.,Adversary No. 06-08333A.,Adversary No. 06-08336A.,Adversary No. 06-08493A.,Adversary No. 06-08321A.,Adversary No. 07-08243A.,Adversary No. 06-08329A.,Adversary No. 07-08245A.,Adversary No. 06-08368A.,Adversary No. 06-08341A.,Adversary No. 07-08244A.,Adversary No. 06-08419A.,Adversary No. 06-08389A.,Adversary No. 06-08387A.,Adversary No. 06-08431A.,Adversary No. 06-08338A.,Adversary No. 06-08423A.,Adversary No. 06-08420A.,Adversary No. 06-08337A.,Adversary No. 06-08340A.,Adversary No. 07-08246A.,Adversary No. 06-08415A.,Adversary No. 06-08398A.,Adversary No. 06-08430A.,Adversary No. 06-08373A.,Adversary No. 06-08412A.,Adversary No. 06-08339A. |
Citation | 396 B.R. 810 |
Parties | In re BAYOU GROUP, LLC, et al., Debtors. Bayou Accredited Fund, LLC v. Redwood Growth Partners, L.P. Bayou No Leverage Fund, LLC v. Christian Brothers High School Endowment. Bayou Superfund, LLC v. D. Canale Beverages, Inc. Bayou No Leverage Fund, LLC v. Fred Montesi IRA and Fred Montesi. Bayou Superfund, LLC v. Helen Yulman Revocable Trust. Bayou Superfund, LLC v. Heritage Hedged Equity Fund LP. Bayou Superfund, LLC v. John D. Canale III. Bayou Superfund, LLC v. KFI Capital Partners LLC. Bayou Superfund, LLC v. Mary P. Smythe Residuary Trust. Bayou Superfund, LLC v. Mary Jane Pidgeon Sledge. Bayou No Leverage Fund, LLC v. Mayer and Morris Kaplan Foundation. Bayou Superfund, LLC v. YK Investment Partnership II. Bayou Superfund, LLC v. Marvin E. Bruce Living Trust. Bayou Accredited Fund, LLC v. Freestone Low Volatility Partners LP. Bayou Superfund, LLC v. William Strang. Bayou Superfund, LLC v. Randall M. Rothstein and Sheryl B. Rothstein. Bayou Superfund, LLC v. Alan Osofsky. Bayou Accredited Fund, LLC v. Madison Capital Advisors Ltd. Bayou Superfund, LLC v. Highgate Partners LP. Bayou No Leverage Fund, LLC v. DW Resources Defined Benefit Plan and Marc Daniels. Bayou Superfund, LLC v. Michael Mann. Bayou Superfund, LLC v. Myrna Bennett. Bayou Superfund, LLC v. H & B Hedge Fund II LLC. Bayou No Leverage Fund, LLC v. Marc Fleisher IRA and Marc Fleisher. Bayou No Leverage Fund, LLC v. Peter Haje IRA and Peter Haje. Bayou Superfund, LLC v. Kevin Bass. Bayou Superfund, LLC v. Michael Davidson. Bayou Superfund, LLC v. Sterling Stamos Security Fund, L.P., Sterling Stamos Security Fund— Friends and Family, L.P., Sterling Stamos Growth Fund, L.P., and Sterling Stamos Liquidity Fund, L.P. Bayou Superfund, LLC v. DB Structured Products Inc. Bayou Superfund, LLC v. High Sierra Investments. Bayou No Leverage Fund, LLC v. John Barr III IRA and John Barr III. Bayou Superfund, LLC v. Neil D. Cohen. Bayou Accredited Fund, LLC v. Edward Sorkin and Virginia Sorkin. |
Court | U.S. Bankruptcy Court — Southern District of New York |
Gary J. Mennitt, Esq., Jonathan D. Perry, Esq., Elise Scherr Frejka, Esq., Dechert LLP, Tracy L. Klestadt, Esq., Brendan Scott, Esq., Klestadt & Winters, LLP, New York, NY, for the Debtors and Debtors-in-Possession.
Carole Neville, Esq., Sonnenschein Nath & Rosenthal LLP, New York, NY, for Twenty-four Defendants.
Jeff F. Friedman, Esq., Katten, Muchin, Rosenman, LLP, New York, NY, for Peter Haje IRA and Peter Haje.
Richard B. Feldman, Esq., Rosenberg Feldman Smith, LLP, New York, NY, for Freestone Low Volatility Partners, LP.
Kevin Burke, Esq., Cahill, Gordon & Reindel, New York, NY, for DB Structured Products Inc.
Marcy Harris, Esq., Schulte, Roth & Zabel, LLP, New York, NY, for Sterling Stamos Security Fund, L.P., Sterling Stamos Security Fund—Friends and Family, L.P., Sterling Stamos Growth Fund, L.P., and Sterling Stamos Liquidity Fund, L.P.
Joseph W. Allen, Esq., Jaeckle Fleischmann & Mugel, LLP, Buffalo, NY, for Christian Brothers High School Endowment.
H. William Munno, Esq., Seward & Kissel, LLP, New York, NY, for Mary Jane Pidgeon Sledge.
P. Gregory Schwed, Esq., Loeb & Loeb, LLP, New York, NY, for Highgate Partners LP.
DECISIONS ON CROSS-MOTIONS FOR SUMMARY JUDGMENT
Before the Court are motions, and in most cases cross-motions, for summary judgment in thirty-three adversary proceedings brought by plaintiffs-debtors Bayou Accredited Fund, LLC, Bayou No Leverage Fund, LLC and Bayou Superfund, LLC (collectively "plaintiffs," or the "Bayou hedge fund[s]," or simply "Bayou") against defendants-investors in the Bayou hedge funds who successfully redeemed their investments within one year prior to the public collapse in August 2005 of the Bayou hedge fund empire. Plaintiffs sue under Section 548(a) of the Bankruptcy Code, 11 U.S.C. §...
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Wiggains v. Reed (In re Wiggains)
...of any one of the three requisite states of mind... is sufficient to establish the intent element."); see also In re Bayou Group, LLC, 396 B.R. 810 (Bankr. S.D.N.Y. 2008), aff'd in part, rev'd in part, 439 B.R. 284 (S.D. N.Y. 2010) ("The malicious intent sufficient to support a cause of act......
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In re THE 1031 TAX GROUP LLC.
...for the characterization of a fraudulent scheme as a Ponzi scheme). See also Bayou Accredited Fund, LLC v. Redwood Growth Partners, L.P. (In re Bayou Group, LLC), 396 B.R. 810, 835 (Bankr.S.D.N.Y.2008) (“Courts have consistently found that criminal proceeding admissions of a fraudulent sche......
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Meoli v. Huntington Nat'l Bank (In re Teleservices Grp., Inc.)
...a similar moral indifference in evaluating other aspects of the Code's treatment of fraudulent transfers. For example, the court in Bayou Group observed that Section 548(c) bad faith was “somewhat different” from an ordinary person's association of the term with “dishonesty” and “deceit.” 1......
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William F. Perkins, in His Capacity of Int'l Mgmt. Assocs., LLC v. Lehman Bros., Inc. (In re Int'l Mgmt. Assocs., LLC)
...Fla. 2002).73 See supra note 60 and accompanying text.74 444 B.R. at 814 (quoting Bayou Accredited Fund, LLC v. Redwood Growth Partners (In re Bayou Group, LLC), 396 B.R. 810, 884 (Bankr. S.D.N.Y. 2008), rev'd in part, 439 B.R. 284 (S.D.N.Y. 2010) ).75 444 B.R. at 814 (quoting Harrell v. Be......
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Chapter IV Proving the Elements
...(In re Blatstein), 192 F.3d 88, 97 (3d Cir. 1999); Bayou Accredited Fund LLC v. Redwood Growth Partners L.P. (In re Bayou Group LLC), 396 B.R. 810, 826 (Bankr. S.D.N.Y. 2008); Tronox v. Kerr McGee Corp. (In re Tronox), Adv. Pro. No. 09-1198 (ALG), 2013 WL 6596696, at *23-24, 27 (Bankr. S.D.......
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CHAPTER 2 TINKERBELLE, THE CRUDE PEOPLE AND THE BANKRUPTCY CODE
...84 F.3d 1330, 1338 (10th Cir. 1996); In re Anchorage Marina, Inc. 93 B.R. 686, 693 (Bankr. D.N.D. 1988). See also In re Bayou Group LLC, 396 B.R. 810 (Bankr. S.D.N.Y. 2008) (adopting "objective" or "reasonable person" standard with respect to investor redemptions). [225] Brown v. Third Nat'......
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Chapter 13 priority, Claims and Distribution
...disallowed based on the claim seller's misconduct. In re Enron Corp., 333 B.R. 205 (Bankr. S.D.N.Y. 2005); see also In re Bayou Grp., LLC, 396 B.R. 810 (Bankr. S.D.N.Y. 2008); In re Enron Corp., 340 B.R. 180 (Bankr. S.D.N.Y. March 31, 2006) (claim purchaser may have its claim disallowed und......
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Chapter V Affirmative Defenses
...that limitations period in § 546(a) can be waived or extended by agreement).[552] Id.[553] 11 U.S.C. § 548(c). See also In re Bayou Group, 396 B.R. 810, 822, 844 (Bankr. S.D.N.Y. 2008) ("[A] transferee ... may retain the transfer ... if both of two conditions are met: (i) if the transferee ......