WISCOVITCH RENTAS v. CORUS HARDWARE CORPORATION

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Caseli06-00033-ESL Doc#:30 Filed:10/06/06 Entered:10/06/06 08:04:09 Desc: Main
Document Page 1 of 2 ;

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF PUERTO RICO

IN THE MATTER OF
LASER REALTY, INC., : CASE NO. 04-12634 (SEK)

DEBTOR ; CHAPTER 7

NOREEN WISCOVITCH RENTAS,
TRUSTEE FOR THE ESTATE OF
LASER REALTY, INC.,

Pa

PLAINTIFF : ADV. NO. 06-00033 oo. joes
grey mace srns at
v. : FILED & ENTERED
CHORUS HARDWARE CORPORATION
OCT 6 2006
DEFENDANT : i
aa en 7 OU ERK
Prey GOURy
OPINION AND ORDER 1.8. panunlizcy CONT

%

Defendant filed a motion to dismiss the complaint because
certain causes of action are moot, and others must be submitted
to arbitration. The Trustee objects on several grounds, which we
deny for reasons that follow.

The Trustee filed this complaint for declaratory judgment
and damages claiming Defendant had breached the lease agreement
causing damages, was not entitled to occupy the leasehold and
therefore, we should evict Defendant and award certain damages to
the Estate.

Defendant filed a motion to dismiss stating the Trustee sold
the leasehold to a third party after filing this complaint. The
Buyer is not a party, and is not seeking to evict the Defendant.
Therefore, the request for eviction due to Defendant's breach of

lease agreement is moot. In any event, the real party in

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Case

hs-00033-es- Doc#:30 Filed:10/06/06 Entered:10/06/06 08:04:09 Desc: Main
Document Page 2 of 2
interest is the Buyer, not the Trustee.

Next, Defendant claims the Trustee’s unresolved claims for
damages arising from any breach of the lease agreement in
question must be settled by arbitration in San Juan, as stated in
the 14° paragraph of the agreement.

The Trustee acknowledges the mentioned paragraph, but claims
the estate should be relieved from arbitration because of its
adverse effect on the estate. The Trustee offers no explanation
other than this assertion.

We grant the motion to dismiss based on the undisputed facts
that the leased realty was sold by the Trustee to a third party
who is the real party in interest in matters concerning eviction,
and is not under the jurisdiction of this court. We also find in
favor of Defendant on the issue of unresolved damage claims, as
the Trustee did not meet her burden of persuasion of showing
prima facie how arbitration would adversely affect the Estate.

WHEREFORE, we granted the Defendant’s motion to dismiss this
complaint with prejudice, without awarding costs or attorney's
fees. We order the Clerk to enter separate judgment accordingly,
and close the proceeding once it becomes final.

SO ORDERED, in San Juan, Puerto Rico on October 4, 2006.

Waa

ARA DE JE ~
U.Sf Bankrupt Judge