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Hart Systems, Inc. v. Arvee Systems, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Nov 24, 1997
244 A.D.2d 527 (N.Y. App. Div. 1997)

Opinion

November 24, 1997

Appeal from the Supreme Court, Nassau County (Adams, J.).


Ordered that the order is affirmed, with costs.

The plaintiff's causes of action against the defendant should have been listed as an asset of the bankruptcy estate in connection with the previous chapter 11 proceeding in which the plaintiff obtained discharge from its debts ( see, 11 U.S.C. § 541 [a] [1], [7]; Bromley v. Fleet Bank, 240 A.D.2d 611; Cafferty v Thompson, 223 A.D.2d 99). The plaintiff did not offer to prosecute this cause of action under the supervision of the Bankruptcy Court, so as to guarantee that any judgment would be subject to the claims of the plaintiff's creditors, and did not request a stay of this action so as to permit it to petition the Bankruptcy Court for relief in this respect. Accordingly, dismissal of the plaintiff's action is appropriate under the terms of the Bankruptcy Code ( 11 U.S.C. § 1141 [b], [c]; Cafferty v Thompson, supra; see also, Rosenshein v. Kleban, 918 F. Supp. 98; Greenheart Durawoods v. PHF Intl. Corp., 1994 WL 652434; WinMark Ltd. Partnership v. Miles Stockbridge, 345 Md. 614, 693 A.2d 824; Folklane Hotel Assocs. v. Board. of Assessors, 170 Misc.2d 712), just as it would have been under section 70 (i) of the former Bankruptcy Act ( see, Dynamics Corp. v. Marine Midland Bank N.Y., 69 N.Y.2d 191; see also, Cafferty v Thompson, supra; Bromley v. Fleet Bank, supra; Weiss v. Goldfeder, 201 A.D.2d 644).

Bracken, J. P., Rosenblatt, Copertino and Luciano, JJ., concur.


Summaries of

Hart Systems, Inc. v. Arvee Systems, Inc.

Appellate Division of the Supreme Court of New York, Second Department
Nov 24, 1997
244 A.D.2d 527 (N.Y. App. Div. 1997)
Case details for

Hart Systems, Inc. v. Arvee Systems, Inc.

Case Details

Full title:HART SYSTEMS, INC., Appellant, v. ARVEE SYSTEMS, INC., Respondent

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: Nov 24, 1997

Citations

244 A.D.2d 527 (N.Y. App. Div. 1997)
664 N.Y.S.2d 465

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