Krasny et al v. Bagga et al

IN THE U NITED S TATES B ANKRUPTCY C OURT
F OR THE E ASTERN D ISTRICT OF P ENNSYLVANIA
In re 	: Chapter 7
:
JAMUNA REAL ESTATE, LLC 	: Bankruptcy No. 04-37130
UNITED MANAGEMENT SERVICES, INC. 	: Bankruptcy NO. 04-37132
BAGGA ENTERPRISES, INC. 	: Bankruptcy No. 04-37136
Debtor(s) 	:
MARVIN KRASNY, IN HIS CAPACITY AS 	:
CHAPTER 7 TRUSTEE OF UNITED 	:
MANAGEMENT SERVICES, INC.; 	:
MARVIN KRASNY, IN HIS CAPACITY AS 	:
CHAPTER 7 TRUSTEE OF JAMUNA REAL 	:
ESTATE LLC; GARY SEITZ, IN HIS 	:
CAPACITY AS CHAPTER 7 TRUSTEE OF 	:
BAGGA ENTERPRISES, INC. AND FL 	:
RECEIVABLES TRUST 2002-A 	:
Plaintiffs 	:
v. 	:
PRATPAL BAGGA; KHUSHVINDER BAGGA; 	:
RAVINDER CHAWLA; HARDEEP CHAWLA; 	:
WELCOME GROUP, INC.; K&P REAL 	:
ESTATE LLC; WORLD APPAREL PRODUCTS, 	:
INC. D/B/A/ SJM TRADING COMPANY, 	:
D/B/A TEN TIGERS; AMERICAN 	:
MERCHANDISE CO., INC., A/K/A 	:
AMERICAN MERCHANDISING CO.,INC.; 	:
21 ST CENTURY RESTAURANT SOLUTIONS, 	:
INC.; BRAND TRADE, INC.; H.B. 	:
PROPERTIES, INC.; H.B. PROPERTIES 	: Advs. No. 06-128
LLP; SANT PROPERTIES; JOHN AND 	: Advs. No. 06-129
JANE DOES AND ABC COMPANIES 	: Advs. No. 06-130
Defendants 	:
ORDER
AND NOW, upon consideration of Plaintiffs’ Motion for Reconsideration of the Order of
the Order of the Court Granting the Chawla Defendants’ Motion for Partial Summary Judgment
and for Leave to File an Amended Complaint, the Answer in opposition thereto, and after
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hearing thereon April 22, 2008, it is hereby:
O RDERED , that for the reasons set forth in the attached Opinion, the Plaintiffs’ Motion
for Reconsideration shall be and hereby is denied; and it is further:
O RDERED , that for the reasons set forth in the attached Opinion, the Plaintiffs’ Motion
for Leave to Amend will be granted only in part, and as follows:
Counts I and II (RICO and Conspiracy):
The Trust’s request for leave to amend the Complaint to replead the claims which were
dismissed by the Court’s February 6, 2008 ruling is denied; the Trust’s RICO claims are limited
to harm alleged to have been directly suffered by it. The Bankruptcy Trustees’ request for leave
to amend to plead RICO and RICO Conspiracy claims is denied;
Count IV (Fraudulent Transfer): Leave will be granted to amend the Complaint as
proposed.
Count IX (Fraud, Conspiracy to Commit Fraud): Leave to amend the Fraud Count
will be denied; however, leave will be granted to plead a cause of action for conspiracy to
commit fraud as to Pratpal Bagga and Ravinder Chawla.
Counts X and XV (Alter Ego): Leave to amend these Counts will be denied.
Counts XI and XIII (Breach of Fiduciary Duty): Leave to amend these Counts will be
denied.
The Plaintiffs’ request for clarification is denied.
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By the Court:
Stephen Raslavich
Chief U.S. Bankruptcy Judge
Dated: July 22, 2008
Interested Parties:
George Conway, Esquire
Office Of The U.S. Trustee
833 Chestnut Street
Suite 500
Philadelphia PA 19106
Counsel for Plaintiffs
Lawrence J. Tabas, Esquire
OBERMAYER REBMAN MAXWELL & HIPPEL LLP
One Penn Center, 19th Fl.
1617 JFK Blvd
Philadelphia, PA 19103
Patrick Fitzmaurice, Esquire
Christopher F. Graham, Esquire
THATCHER PROFFIT & WOOD LLP
50 Main Street
White Plains, NY 10606
Counsel for Defendants
Richard M. Simins, Esquire
Paul C. Madden, Esquire
Jeffery M. Carbino, Esquire
BUCHANAN INGERSOLL & ROONEY PC
1835 Market Street, 14 th Fl
Philadelphia, PA 19103-2985
Andrew Teitelman, Esquire
380 Red Lion Road, Ste 202
Huntingdon Valley, PA 19006
Nancy Mulvehill, Courtroom Deputy to Judge Raslavich
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