Amini LLC has won another $2.8 million for the Chapter 7 Trustee of TransCare from Patriarch Partners Agency Services LLC (PPAS), a lending entity affiliated with Lynn Tilton. In a written decision, Bankruptcy Judge David Jones determined that the Trustee was entitled to an additional $2.8 million in legal fees from PPAS under New York Debtor Creditor Law § 276-a because PPAS had engaged in an actual fraudulent transfer. The underlying fraudulent transfer concerned PPAS’ pre-bankruptcy strict foreclosure of TransCare’s most valuable assets for which Amini LLC won a $52 million judgment after trial.
Granting the motion, the Court rejected PPAS’ argument that the fees should be denied under the “single satisfaction” rule. PPAS argued that because Amini LLC had already recovered so much money from Tilton on the same strict foreclosure – an amount facially exceeding PPAS’s own judgment, plus the attorneys’ fees sought from PPAS – that PPAS should be excused from paying attorney’s fees under § 276-a.
The Bankruptcy Court rejected this argument, stating it was “analytically misguided” because the recovery of prejudgment interest “cannot be said to have been a recovery or satisfaction of any attorneys’ fee award” which must be “in addition to … the base judgment amount plus interest.” The Bankruptcy Court entered a $2.8 million judgment for attorneys’ fees and ordered that the award is not subject to reduction or offset on account of the Tilton judgment having been satisfied.
The victory is significant not only for the monetary result but also because PPAS’ claims against the TransCare estate will be disallowed under section 502(d) until this award is paid.
Press release linked here: https://www.businesswire.com/news/home/20250304614268/en/Amini-LLC-Adds-Another-%242.8-Million-to-%2452-Million-TransCare-Victory
Decision linked here: https://storage.courtlistener.com/recap/gov.uscourts.nysb.281066/gov.uscourts.nysb.281066.190.0.pdf