Cifelli v. Blue Star Residential, LLC (In re Miles)

ORDER DENYING MOTION TO DISMISS

MARGARET H. MURPHY, Bankruptcy Judge.

This adversary proceeding is before the Court on Defendant’s Motion to Dismiss. Plaintiff, the Chapter 7 Trustee (“Trustee”), filed a complaint seeking to avoid an allegedly fraudulent transfer from Debtor to Defendant Blue Star Residential, LLC (“Blue Star”) pursuant to 11 U.S.C. §§ 548 and 550. Defendant argues, relying on the recent decision of the Supreme Court in Stern v. Marshall, — U.S.-, 131 S.Ct. 2594, 180 L.Ed.2d 475 (2011), that such an avoidance action cannot constitutionally be decided in this court because it is…