Court denied defendant's motion for summary judgment or partial summary judgment as to a complaint seeking revocation of the defendant's discharge under 727(d)(1).

Alleged debtor was in an accident while driving the petitioning creditor’s vehicle, and petitioning creditor was injured and retained counsel. Petitioning creditor eventually obtained a default judgment and planned to file an involuntary petition to use a bankruptcy trustee to assert first-party non-assignable state law claims against insurers. Insurers provided alleged debtor with counsel to seek to set aside the default judgment, and the petitioning creditor obtained a writ of execution that went unsatisfied and immediately filed the petition. Alleged debtor responded to the petition, seeking dismissal of the case on several grounds, including bad faith. The court found the alleged debtor overcame the presumption that the involuntary petition was filed in good faith, and the case was dismissed. The court noted that the involuntary petition strategy itself raised serious questions of good faith; that the case was a two-party dispute and an improper attempt at debt collection; that it was abnormal to consider filing an involuntary petition prior to executing on a judgment; that petitioning creditor's counsel, both in state court and in bankruptcy, made misleading statements and took misleading actions that constituted questionable conduct, may have contributed to obtaining the default judgment, and raise ethics concerns; that the race to file the petition appeared to be an attempt to cut off alleged debtor's ability to seek review of the judgment; and that alleged debtor should be allowed to pursue his own state law claims and there is no wasting asset.

The Court denied a motion to reconsider claim, finding that reconsideration would impair the finality of judgments in the Court and allow the creditor to re-litigate a matter which had already been fully litigated.

Judgment and Memorandum Opinion: (1) denying Plaintiff's Motion for Sanctions for discovery violations under Federal Rule of Civil Procedure 37; (2) declining to sanction Defendant and Defendant's counsel under Federal Rule of Bankruptcy Procedure 9011 sua sponte; and (3) finding insolvency and awarding a judgment of $97,600 in favor of Plaintiff against Defendant for preferential transfers under 11 U.S.C. § 547(b).