Rentas v. Sani-Plant Co. (In re Fussa), CASE NO. 17-03075 (ESL)
| Court | United States Bankruptcy Courts. Tenth Circuit. U.S. Bankruptcy Court — District of Puerto Rico |
| Parties | IN RE: ALBERTO ENRIQUE DAVILA FUSSA; PAULA ANDREA MONTENEGRO MORALES Debtors NOREEN WISCOVITCH RENTAS, CHAPTER 7 TRUSTEE Plaintiff v. SANI-PLANT COMPANY, INC. Defendant |
| Docket Number | CASE NO. 17-03075 (ESL),ADV. PROC. NO. 19-00225 (ESL) |
| Decision Date | 14 August 2020 |
IN RE: ALBERTO ENRIQUE DAVILA FUSSA;
PAULA ANDREA MONTENEGRO MORALES Debtors
NOREEN WISCOVITCH RENTAS, CHAPTER 7 TRUSTEE Plaintiff
v.
SANI-PLANT COMPANY, INC. Defendant
CASE NO. 17-03075 (ESL)
ADV. PROC. NO. 19-00225 (ESL)
UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF PUERTO RICO
August 14, 2020
CHAPTER 7
OPINION AND ORDER
This adversary proceeding is before the court upon the Motion for Summary Judgment on Statute of Limitations Grounds filed by Sani-Plant Company, Inc. (hereinafter referred to as "Sani-Plant" or "Defendant") arguing that the Plaintiff's claims are time-barred pursuant to 11 U.S.C. §108(a) because the Chapter 7 Trustee failed to timely preserve debtors' claims for pre-petition unpaid wages under applicable non-bankruptcy law (Docket No. 29). The Chapter 7 Trustee (hereinafter referred to as "Trustee" or "Plaintiff") filed her Opposition to Defendant's Motion for Summary Judgment contending that: (i) discovery is still pending and there are issues of material facts such as whether the transfers made to the Debtors (who have interests in
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Defendant Corporation) were made on account of salaries, debt, or other account; (ii) there are issues of material facts as to the details of certain account receivables owed for the years 2014 and 2015; and (iii) the Defendant's argument would be inapplicable if the transfers made were not on account of wages but based upon some other account such as a debt or if made on account of salaries but for a different period (Docket No. 38). For the reasons stated herein, the court denies the Defendant's Motion for Summary Judgment and grants Plaintiff's Opposition to Motion for Summary Judgment.
The Court has jurisdiction pursuant to 28 U.S.C. §§ 1334(b) and 157(a). This is a core proceeding pursuant to 28 U.S.C. §§157(b)(1) and (b)(2)(A), (E). Venue of this proceeding is proper under 28 U.S.C. §§1408 and 1409.
The Debtor filed a bankruptcy petition under Chapter 7 of the Bankruptcy Code on April 29, 2017 (Lead Case No. 17-03075). The Debtors included in Schedule A/B- Property, in line item #38 an accounts receivable or commissions already earned which they disclosed was for unpaid wages from Sani-Plan[t] with an estimated value or amount that was listed as not available (Lead Case No. 17-03075, Docket No. 13, pg. 12). On April 30, 2019, the Trustee filed the instant adversary proceeding against Sani-Plant for turnover of property of the bankruptcy estate pursuant to 11 U.S.C. §§ 541, 542 and 543. The property consists of pre-petition account receivables owed by Defendant for alleged unpaid wages in the amount of $7,280.83 (Docket No. 1). On September 4, 2019, the Defendant filed its Answer to Complaint (Docket No. 17). On October 17, 2019, the Plaintiff filed a Motion Requesting Rescheduling of Preliminary Pretrial and Scheduling Conference set for October 25, 2019 (Docket No. 18) and the same was granted (Docket No. 19). On February 14, 2020, the parties filed a Joint Initial Scheduling Conference
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Report (Docket No. 21). On February 21, 2020 a preliminary pretrial hearing was held in which the parties were granted ninety (90) days to conclude discovery, that is June 30, 2020 and one hundred eighty days (180) to file dispositive motions, that is September 30, 2020. Replies are due twenty-one (21) days thereafter. Rule 7026(a)(1) disclosures by March 31, 2020. Property to be recovered is in the amount of $7,280.83 for services rendered pursuant to 11 U.S.C. §§542 & 543 (Docket No. 22).
On June 5, 2020, the Trustee filed an Informative Motion as to Discovery Served Upon Defendant (Docket No. 25). On June 5, 2020, the Plaintiff filed a Motion Requesting Extension until July 31, 2020 to Conclude Discovery (Docket No. 26) and the same was granted (Docket No. 27).
On July 16, 2020, the Defendant filed a Motion for Summary Judgment on Statute of Limitations Grounds contending that there are no material facts in controversy and the Trustee failed to timely toll the applicable statute of limitations under 11 U.S.C. §108(a) to pursue the debtors' claims asserted in this adversary proceeding and therefore, the complaint should be dismissed with prejudice (Docket No. 31). On July 16, 2020, Sani-Plant filed a Motion for Stay of Discovery until Dispositive Motion is Adjudicated, or in the Alternative Extension of Time to Respond to Discovery (Docket No. 32). On July 16, 2020, the Court granted the Defendant's motion requesting that discovery be stayed until the motion for summary judgment is adjudicated (Docket No. 34). On July 24, 2020, the Plaintiff filed her Opposition to Defendant's Motion for Summary Judgment arguing: (i) that there are issues of material facts such as whether the transfers made to the Debtors (who have interests in Defendant Corporation) were made on account of salaries, debt, or other account; (ii) there are issues of material facts as to the details of certain account receivables owed for the years 2014 and 2015; and (iii) the Defendant's argument would be inapplicable if the transfers made were not on account of wages but based upon some other
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account such as a debt or if made on account of salaries but for a different period (Docket No. 38). On July 24, 2020, the Trustee filed a Request for Reconsideration of Order Staying Discovery Process requesting reconsideration contending that adjudicating and/or granting Defendant's Motion for Summary Judgment is improper in this adversary proceeding because discovery is still pending and there are genuine issues of material facts (Docket No. 39).
The parties agree that the following material facts are uncontested:
...Uncontested Material Facts
1. Schedule A/B: Property regards "Account receivables or commissions you already earned." The Debtors marked "yes" and entered the following description: "unpaid wages from Sani Plan[t]. The Debtors disclosed that the estimated value or amount was "not available" (Lead Case No. 17-03075; Docket No. 13).
2. At the meeting of creditors held by the Trustee, the Debtors testified that as of the date of the filing of their bankruptcy petition, Defendant Sani-Plant owed Mr. Alberto Dávila and Ms. Paula Montenegro $1,794.40 and $5,466.43, respectively, "for work performed by them" for the benefit of Sani-Plant (Docket No. 31,
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