In re Green Valley Seeds, Inc., Bankruptcy No. 79-00869

• Decision Date: 29 December 1982
• Docket Number: Bankruptcy No. 79-00869,Adv. No. C-1.
• Citation: 27 BR 34
• Parties: In re GREEN VALLEY SEEDS, INC., Debtor. Gary E. NORMAN, Trustee, Plaintiff, v. David RIDDELL, Christy Riddell, and Western Agricultural Improvement, Inc., Defendants.
• Court: U.S. Bankruptcy Court — District of Oregon

27 B.R. 34 (1982)

In re GREEN VALLEY SEEDS, INC., Debtor Gary E. NORMAN, Trustee, Plaintiff, v. David RIDDELL, Christy Riddell, and Western Agricultural Improvement, Inc., Defendants.

Bankruptcy No. 79-00869, Adv. No. C-1.

United States Bankruptcy Court, D. Oregon.

December 29, 1982.

Laura J. Walker, Portland, Or., for plaintiff.

Joseph Penna, Monmouth, Or., for debtor.

MEMORANDUM OPINION

HENRY L. HESS, Jr., Bankruptcy Judge.

The court held a hearing on February 2, 1982 on defendants' motion to dismiss causes of action 1, 2, 4, 5, 6, and 8 of the complaint on the grounds that the causes of action failed to state claims upon which relief could be granted, and to strike paragraphs XXVIII and XXXI on the grounds that the former was immaterial and the latter impertinent. In the alternative, defendants requested that paragraph XLI and XLII be made more definite and certain.

At the hearing, the court denied the motion to dismiss the first and fifth causes of action, and defendants abandoned their motion as to the second cause of action. The court took the objections to the fourth and eighth causes of action under advisement and invited counsel to submit memoranda on the question of dismissal as to these causes of action. The court further ruled that plaintiff would have thirty days from the date the court ruled upon the objections to the fourth and eighth causes of action within which to amend the sixth cause of action and paragraph XXXI. The motion to strike paragraph XXVIII of the sixth cause of action was granted. The court stated that it would not, at this time, rule on defendants' alternative motion to make paragraphs XLI and XLII more definite and certain.

The fourth cause of action alleges that defendants David Riddell and Christy Riddell, as officers of the debtor corporation, Green Valley Seeds, Inc. ("Green Valley"), authorized an assignment of certain seed contracts to defendant Western Agricultural Improvement Inc. ("Western Ag") for inadequate consideration and/or with the intent to hinder, delay or defraud the creditors of Green Valley and benefit themselves. The transfer was allegedly made at a time when Green Valley was insolvent. It is further alleged in the fourth cause of action that the Riddells knowingly participated in this fraudulent transfer of property and that Western Ag knew or should have known that Green Valley intended to hinder, delay or defraud Green Valley's creditors. Plaintiff seeks in this cause of action to recover the reasonable value of the assigned contracts which plaintiff values at $100,000.00.

It appears that the fourth cause of action seeks recovery from David Riddell and Christy Riddell upon one or both of two theories. One is that the Riddells breached a fiduciary duty as officers of Green Valley by causing or participating in a transfer of contracts owned by Green Valley to Western Ag for an insufficient...