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Opinion 145

Case Name: 

Joseph v. Stone (In re Stone)

Judge: 
Judge Clark
Date: 
Dec-10-1984
Case Number(s): 
84PC-0988
Status: 

UNPUBLISHED
See 264.pdf

Body: 

Limited partners filed a class action adversary complaint against debtor, the partnership's general partner, alleging that debtor had engaged in fraud while acting as a fiduciary, and that limited partners' claims were therefore non-dischargeable. Debtor moved to dismiss the complaint, asserting that plaintiffs had failed both to certify their class action and to plead fraud with particularity. The court refused to dismiss plaintiffs' claims based on failure to certify the class, concluding that dismissal was not appropriate because plaintiffs' claims could be maintained as non-class claims. However, the court granted dismissal pursuant to Fed. R. Civ. P. 9(b) [Bankr. R. 7009], based on plaintiffs' failure to plead fraud with particularity. The court refused to adopt a liberal reading of the claims in the case, because plaintiffs were all parties to the alleged fraudulent transactions, and should therefore be able to describe the facts of the fraud with particularity. The complaint was dismissed without prejudice.

Internal Ref: 
Opinion 145
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