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IN RE MORTGAGES LTD.

Case No. 2:08-bk-07465-RJH, Adversary No. 2:10-ap-01095-RJH.

In re MORTGAGES LTD., Chapter 11, Debtor. MATTHEW HARTLEY, LIQUIDATING TRUSTEE OF THE ML LIQUIDATING TRUST, Plaintiff, v. CRAIG A FORTE AND LAURI T. FORTE, TRUSTEES OF THE FORTE FAMILY REVOCABLE LIVING TRUST, DATED MAY 30, 2011, Defendants.

United States Bankruptcy Court, D. Arizona.

March 28, 2013.

MEMORANDUM DECISION GRANTING MOTION TO DISMISS

RANDOLPH J. HAINES, Bankruptcy Judge.

The Liquidating Trustee has sued the Fortes for an avoidable preference, and the Fortes have moved to dismiss. The threshold issue here is whether the confirmed plan of reorganization released the preference claim against the Fortes, or whether it adequately preserved that claim for assertion by the Liquidating Trust.

There is no dispute in this case that the Fortes...

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