IN RE INSULFOAMS, INC.

Bankruptcy No. 89-21047-BM. Adv. No. 94-2284-BM.

184 B.R. 694 (1995)

In re INSULFOAMS, INC., Debtor. Joseph J. BERNSTEIN, Esquire, Trustee in the Chapter 7 Bankruptcy Estate of Insulfoams, Inc., Plaintiff, v. Dennis C. DONALDSON, and Marion L. Donaldson, his wife, Defendants.

United States Bankruptcy Court, W.D. Pennsylvania.

July 19, 1995.


Attorney(s) appearing for the Case

Joseph J. Bernstein, Trustee, Charles E. Bobinis, Bernstein and Bernstein, P.C., Pittsburgh, PA, for plaintiff.

Donald E. Calaiaro, Calaiaro, Corbett & Bower, P.C., Pittsburgh, PA, for defendants.


MEMORANDUM OPINION

BERNARD MARKOVITZ, Bankruptcy Judge.

The chapter 7 trustee in the above bankruptcy case has brought an action against defendants Dennis and Marion Donaldson, who were principals of this debtor when in possession under chapter 11, averring a breach of fiduciary duty. According to the trustee, defendants caused debtor's plan of reorganization to be confirmed under "false pretenses" and then breached their duty as fiduciaries by causing...

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