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DEVANEY v. CHESTER

83 Civ. 8455 (JFK).

709 F.Supp. 1255 (1989)

Daniel J. DEVANEY, as trustee under Chapter 11 of the Bankruptcy Code for CB & R (Holdings) Ltd., American Marine Industries, Inc., Chester, Blackburn & Roder, Inc., Chester, Blackburn & Roder (N.Y.), Inc., Pan Antilles Shipping Company, Current Trader Ltd., Atlantic Clipper Ltd., Atlantic Intrepid Ltd., Pan American Mall Line, Inc., Marine Terminals, Inc. and Linea Naviera Panatlantica, S.A., Debtors; and Panatlantic, Inc., Current Marine, Inc., Chester, Blackburn & Roder (South Atlantic), Inc., Chester, Blackburn & Roder, Ltd., Panamerica Inc. and Pancaribe, Inc., Debtors-in-Possession under Chapter 11 of the Bankruptcy Code, Plaintiffs, v. A.P. CHESTER, J.C. Sklaire, R.A. Chester, Jeremy Chester, John Lynch, Howard Morgan, Sheldon H. Kinney, Joseph Carroll, Paul A. Jasinski, John P. Love, Evangelos Alexander, John W. Battles, William Beylund, W.R. Blackburn, Alan Bouwmeester, R. Ross Camardella, Kevin Chester, Britt Chester, Kristine Chester, Kenneth Coleman, Frank Dapena, John Davidson, Peter Evelyn, P.K. Fung, Michele Grindlinger, Bruno Lehoucq, Ruth Lehoucq, Joseph Perez-Jones, Carmen Pizzaro, Ronald Rasmus, Wade Battles, Robert Shay, Joseph Sierra, Aline Sklaire, William Stewart, Perry Walter, Hill Betts & Nash, (In the capacity of Escrow Agent only), Grayson & Bock, Salomon Brothers, Inc., First Boston Commercial Corporation, First Boston Commercial Paper Corporation, Erik K. Klaussmann, III, and David Lindsay, Defendants.

United States District Court, S.D. New York.

March 22, 1989.

Attorney(s) appearing for the Case

Hahn & Hessen, New York City, for plaintiffs; Steven J. Mandelsberg, Barry Schkolnick, of counsel.

Wachtell, Lipton, Rosen & Katz, New York City, for defendant Salomon Bros.; Peter D. McKenna, Richard H. Weiss, Karen B. Shaer, of counsel.

OPINION AND ORDER

KEENAN, District Judge:

This matter is before the Court on the motion of defendant Salomon Brothers, Inc. ("Salomon") pursuant to Fed.R.Civ.P. 9(b) and 12(b)(6) to dismiss all claims asserted against it in the Fourth Amended Complaint (i.e., the First through Sixth Claims for Relief). With respect to the first through fifth claims, Salomon maintains that the complaint fails to allege fraud with particularity pursuant to Fed.R. Civ.P. 9...

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