1. SILLS CUMMIS & GROSS P.C.
Andrew H. Sherman, Esq.
Valerie A. Hamilton, Esq.
Lucas F. Hammonds, Esq.
One Riverfront Plaza
Newark, New Jersey 07102
Phone: (973) 643-7000
Facsimile: (973) 643-6500
asherman@sillscummis.com
vhamilton@sillscummis.com
lhammonds@sillscummis.com
Attorneys for Plaintiff,
Bernard A. Katz, Liquidating Trustee
UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW JERSEY
In re:
CHRIST HOSPITAL, a New Jersey not-for-
profit corporation,
Debtor.
Hon. Morris Stern
Case No. 12-12906 (TBA)
Chapter 11
BERNARD A. KATZ, as Trustee of the Christ
Hospital Liquidating Trust,
Plaintiff,
v.
GENOVA BURNS GIANTOMASI
WEBSTER,
Defendant.
Adv. Pro. No. 14-
COMPLAINT TO AVOID AND RECOVER TRANSFERS
OF PROPERTY PURSUANT TO 11 U.S.C. §§ 547 AND 550
AND TO DISALLOW CLAIMS PURSUANT TO 11 U.S.C. § 502(d)
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Bernard A. Katz (“Plaintiff”), as Trustee of the Christ Hospital Liquidating Trust (the
“Liquidating Trust”) by and through his counsel, Sills Cummis & Gross P.C., as and for a
complaint against Genova Burns Giantomasi Webster (“Defendant”), alleges the following:
NATURE OF THE ACTION
1. Plaintiff demands a money judgment and other relief resulting from certain
transfers made by Christ Hospital (the “Debtor”) to or for the benefit of Defendant during the
90-‐day period immediately preceding the commencement of the Debtor’s bankruptcy case (the
“Preference Period”). Specifically, the Plaintiff seeks entry of a judgment against Defendant: (i)
pursuant to 11 U.S.C. § 547(b), avoiding the Transfers (as defined herein); (ii) pursuant to 11
U.S.C. § 550(a), directing Defendant to pay Plaintiff an amount to be determined at trial that is
not less than the amount of the Transfers, plus interest and costs; and (iii) pursuant to 11 U.S.C. §
502(d), disallowing any claim of the Defendant against the Debtor or its bankruptcy estate until
Defendant pays in full the amount so determined.
THE PARTIES
2. The Debtor was a New Jersey not-for-profit corporation that operated an acute
care hospital located at 176 Palisade Avenue, Jersey City, NJ 07306.
3. Plaintiff is the Debtor Representative and Liquidating Trustee under the Joint Plan
of Orderly Liquidation for the Debtor (the “Plan”) confirmed in the Debtor’s bankruptcy case.
4. Defendant is a company with a principal place of business at 494 Broad Street,
Newark, NJ 07102.
JURISDICTION AND VENUE
5. This case relates to the chapter 11 bankruptcy case of the Debtor (Case No. 12-
12906 (MS)), which is now pending in this district.
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6. The Court has subject matter jurisdiction over this adversary proceeding pursuant
to 28 U.S.C. §§ 1331 and 1334(b) and (e).
7. This adversary proceeding is a core proceeding pursuant to 28 U.S.C. §
157(b)(2)(A), (F), and (O).
8. Venue in this district is proper pursuant to 28 U.S.C. § 1409(a).
BACKGROUND
9. On February 6, 2012 (the “Petition Date”), the Debtor filed a voluntary petition
for relief under Chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in this
Court.
10. On June 4, 2013, this Court entered an order confirming the Plan.
11. The Effective Date of the Plan (as defined in the Plan, the “Effective Date”) was
June 27, 2013.
12. Pursuant to the Plan, as of the Effective Date, the Committee was dissolved and
Bernard A. Katz was appointed as the Debtor Representative and the Liquidating Trustee of the
Liquidating Trust (each as defined in the Plan) established under the Plan for the benefit of the
Debtor’s unsecured creditors.
13. Pursuant to the Plan and the Liquidating Trust Agreement (as defined in the Plan),
the Liquidating Trustee has the power to, inter alia, file and prosecute all actions, causes of
action, or claims of the Debtor or its estate arising under chapter 5 of the Bankruptcy Code.
14. Defendant is a corporation, partnership, or entity that transacted business in the
United States with the Debtor and received one or more transfers from the Debtor during
Preference Period.
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COUNT ONE
(Avoidance of Preferential Transfer Pursuant to 11 U.S.C. § 547(b)
15. Plaintiff hereby repeats and realleges each and every allegation stated above as if
set forth at length herein.
16. During the Preference Period, the Debtor made certain transfers of its property, as
identified on Exhibit A (the “Transfers”), to or for the benefit of Defendant.
17. Defendant was a creditor of the Debtor at the time each of the Transfers was
made.
18. Each of the Transfers was made on account of an antecedent debt or debts owed
by the Debtor to, or for the benefit of, Defendant before each Transfer was made.
19. The Debtor was insolvent at the time each of the Transfers was made.
20. Each of the Transfers was made on or within 90 days before the Petition Date.
21. The Transfers enabled Defendant to receive more than it would have received if
(i) the Debtor’s bankruptcy case were a case under chapter 7 of the Bankruptcy Code, (ii) the
Transfers had not been made, and (iii) Defendant had received payment of the antecedent debt or
debts to the extent provided by the provisions of the Bankruptcy Code.
22. Pursuant to 11 U.S.C. § 547(b), Plaintiff is entitled to judgment avoiding the
Transfers.
COUNT TWO
(Recovery of Transfers Pursuant to 11 U.S.C. § 550)
23. Plaintiff hereby repeats and realleges each and every allegation stated above as if
set forth at length herein.
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24. Defendant was (i) the initial transferee of the Transfers or the entity for whose
benefit the Transfers were made or (ii) the immediate or mediate transferee of such initial
transferee.
25. Pursuant to 11 U.S.C. § 550(a), Plaintiff is entitled to recover from Defendant the
aggregate sum of the Transfers, plus interest thereon from the date of demand to the date of
payment and the costs of this action to the extent permitted.
COUNT THREE
(Disallowance of Claims Pursuant to 11 U.S.C. § 502(d))
26. Plaintiff hereby repeats and realleges each and every allegation stated above as if
set forth at length herein.
27. Defendant has not returned the Transfers.
28. Pursuant to 11 U.S.C. § 502(d), any claims of Defendant against the Debtor must
be disallowed until such time as Defendant pays to Plaintiff an amount equal to the aggregate
amount of all the Transfers, plus interest thereon and costs.
WHEREFORE, Plaintiff demands judgment against Defendant, as follows:
(i) declaring that the Transfers to Defendant constitute voidable preferential transfers
pursuant to 11 U.S.C. § 547(b);
(ii) avoiding the Transfers and directing and ordering that Defendant pay Plaintiff,
pursuant to 11 U.S.C. § 550(a), the full value of the Transfers, in the minimum amount set forth
on Exhibit A, plus interest thereon from and after the date of demand at the highest legally
permissible rate;
(iii) pursuant to 11 U.S.C. § 502(d), disallowing any claim of Defendant against the
Debtor unless Defendant has paid the amount for which Defendant is liable;
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(iv) awarding Plaintiff costs and reasonable attorneys’ fees to the extent permitted;;
and
(v) granting Plaintiff such other and further relief as the Court deems equitable and
proper.
SILLS CUMMIS & GROSS P.C.
Attorneys for Bernard A. Katz, Liquidating Trustee
Dated: May 23, 2014 By: /s/ Andrew H. Sherman
Andrew H. Sherman
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Exhibit A
Transferee
Payment
Date
Payment
Reference Payment
GENOVA BURNS 11/22/2011 41549 25000.00
GENOVA BURNS 12/30/2011 42092 107000.00
GENOVA BURNS 11/22/2011 41548 351728.80
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