Cara Corp. v. Continental Bank (In Re Cara Corp.)

OPINION

DAVID A. SCHOLL, Bankruptcy Judge.

A. INTRODUCTION

CONTINENTAL BANK (“the Bank”), the Defendant in this lender-liability action brought by THE CARA CORPORATION (“the Debtor”), has filed a Motion seeking the entry of Summary Judgment in its favor (“the Motion”). The gravamen of this proceeding is the Debtor’s claims that the Bank, the Debtor’s major source of funding, failed to disclose to the Debtor that A.J. Wood Corp. (“Wood”), a large customer of the Debtor which was also a customer of the Bank, was in financial distress and that, as a result, the Debtor continued to do business with…