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SCI Bankruptcy Trustee Files Adversary Clawback Lawsuit Against 114 Defendants: The Complaint And Its Exhibits Are Over 1800 Pages

Posted in Bankruptcy Clawback News, Legal Representation

Hackard Law attorneys regularly represent plaintiffs and defendants in adversary cases, including clawbacks, in federal bankruptcy courts. The process of representation is often initiated by a preliminary review of our prospective client’s case. A part of this review is the use of the PACER online system (Public Access to Court Electronic Records) made available by the Federal Courts. We were recently asked to review a case just filed last month, and the case’s merits aside, it is noteworthy for its paper heft.

In 2011 Los Angeles-based SCI Real Estate Investments filed for Chapter 11 Bankruptcy in the Central District of California. Now some 114 defendants have been sued by the SCI Bankruptcy Liquidating Trustee for the avoidance of alleged fraudulent transfers. The complaint seeks a number of remedies that will likely be fully and vigorously litigated. That said the complaint with its exhibits tops the paper charts at 1812 pages. Those defendants that were served by mail received a ten pound plus package of paper pleadings comprised of an adversary complaint and 12 exhibits. While the merits of a case cannot be measured in pounds of paper produced, a newly served defendant can’t help but be challenged by a stack of documents over six inches high.

If all of the defendants in this one case were served by mail some 200,000 plus pages of paper will have transited across America, adding up to a payload of almost 2,000 lbs. One can only wonder how the intrepid salespeople at the Dunder Mifflin Paper Company would have handled such a monstrous order.

Read the complaint (Note: document does not include 1,800 pages of exhibits): SCI Complaint