08 B 10095, 10 A 00824
Upon the Defendant’s motion to dismiss the Chapter 11 Liquidation Trustee’s adversary proceeding to avoid alleged fraudulent or preferential transfers, citing Stern-challenges to constitutional grounds and failure to state cause of action on which relief could be granted, held: (i) bankruptcy court, even as non-Article-III court, had constitutional authority to enter final decision on preference avoidance claims; (ii) court also had authority to finally decide fraudulent transfer claims, regardless of whether claims were asserted under bankruptcy fraudulent transfer statute or pursuant to state law in exercise of powers accorded under strong-arm statute; and (iii) allegations in the Liquidation Trustee’s complaint stated plausible claim for relief.  Motion to dismiss denied.