Opinion In Syntax-Brillian – Terminating A Trustee? Not So Easy.

In a 9-page opinion issued in the Syntax-Brillian case on July 20, 2016, Judge Kevin J. Carey denied the motion of equity holders in Syntax-Brillian seeking to terminate the Liquidation Trustee (the “Trustee”). A copy of the Opinion is available on the Court’s website: Here.

The Movants seek to terminate the Trustee, arguing that he should be dismissed due to “lack of standing” and “lack of due process”. Opinion at *4. The Movants are, in essence, rearguing issues they raise in prior pleadings; that first day affidavits were based on fraud, and as such, all events in the chapter 11 case must be vacated. Id. We discussed the opinion that Judge Shannon issued in response to these arguments in a prior blog post: Here. Quoting Judge Shannon’s opinion, Judge Carey similarly dismisses the Movants’ arguments as to lack of standing. Opinion at *4-6.