Steinberg v. Kendig (In Re Ben Franklin Retail Stores, Inc.)

Memorandum, Opinion

RONALD BARLIANT, Bankruptcy Judge.

INTRODUCTION

Some of the Debtors’ unsecured creditors assigned their causes of action against the Debtors’ officers and directors to the Chapter 7 Trustee. He, on behalf of the bankruptcy estates and as assignee of those claims, filed this adversary proceeding charging those officers and directors with breach of fiduciary duties and negligence. The Defendants 1 seek to dismiss the Trustee’s Second Amended Adversary Complaint on the grounds that (1) the Trustee lacks standing to assert the assigned claims because they are claims solely…