Motion to Dismiss Granted – Adversary Proceeding
Pete Werdesheim and Billy Newcomb secured the dismissal of an adversary proceeding against their client in the U.S. Bankruptcy Court, Middle District of Georgia. In short summary, the plaintiffs contended that Carlock Copeland’s client committed various acts of fraud and sought a determination that a state-court judgment against him would be nondischargeable under 11 U.S.C. § 523(a)(4). After a lengthy hearing in Albany, Judge James D. Walker, Jr. issued a memorandum opinion and order on May 29, 2011. Judge Walker found that although “the facts of this case cry out for a remedy” in light of the “egregious” conduct allegedly committed by Carlock Copeland’s client, the plaintiffs failed as a matter of law to show that the firm’s client had engaged in fraud in a fiduciary capacity, as that term is defined in the Bankruptcy Code.