Muccio v. Hunt

Summary

The court reversed and remanded summary judgments and dismissals entered against members of a bankrupt limited-liability company. It held that the pleaded fraud, disclosure, and conversion claims alleged direct injuries to the members, that fact issues precluded summary judgment on the fraud claim against Smiley and his company, that standing and preclusion defenses did not eliminate subject-matter jurisdiction, and that the bankruptcy proceeding did not preclude the state-law claims.