Daniel J. Ventricelli v. Nicklin

Background

The opinion addresses eight lawsuits brought by Daniel J. Ventricelli, as trustee of the bankruptcy estate of William F. Nicklin. The trustee sought, for the estate’s benefit, to recover numerous transfers from the debtor to the defendants. The cases were connected to a pending bankruptcy case, In re William F. Nicklin, No. 19-35092, in the U.S. Bankruptcy Court for the Southern District of New York.

Counsel in the eight cases sent joint letters asking that the cases be reassigned to U.S. Bankruptcy Judge Cecilia G. Morris. Counsel also consented to the reassignment. The court considered whether the lawsuits were related to the pending bankruptcy case under 28 U.S.C. § 157(a) and the district’s Amended Standing Order of Reference.

Court’s Analysis

The court explained that a lawsuit is related to a bankruptcy case when its outcome could change the debtor’s rights, liabilities, options, or freedom of action and could affect the handling or administration of the bankruptcy estate. The court also described the standard as whether the lawsuit could have a conceivable effect on the estate.

Because the eight lawsuits sought to recover transfers for the benefit of the bankruptcy estate, the court concluded that their outcomes could have a conceivable effect on that estate. The court therefore found that the matters were related to the pending bankruptcy proceeding.

Ruling

Judge Vincent L. Briccetti ordered the Clerk to reassign the eight cases to U.S. Bankruptcy Judge Cecilia M. Morris as related to the pending bankruptcy case. The opinion did not decide the merits of the trustee’s claims or the defendants’ defenses.