Plaintiffs' action sought enforcement of the terms of settlement, when a portion of the funds transferred by defendants in satisfaction of their obligations was reclaimed by a Chapter 7 Bankruptcy Trustee as a fraudulent transfer of the corporate debtor's funds. Defendant Ilya Igdalev certified the bank and certified checks he gave plaintiffs were sent by his friend, who was holding Ilya's money, which he was owed. In support of summary judgment,plaintiffs attached the Trustee's adversary proceeding, emails from bankruptcy counsel suggesting, after his review, settlement was appropriate, and the final settlement of the adversary proceeding.
We concluded even if Ilya was unaware of his friend's conduct, he directed the transaction and is responsible for the consequences. In accordance with the terms of settlement, defendants were liable to pay plaintiff the sum accepted by the Chapter 7 Trustee, along with attorney's fees and costs.
Judge Sapp-Peterson dissents, reasoning summary judgment should have been granted in favor of defendants on the breach of contract claim as a matter of law. As for plaintiffs' remaining claims of breach of the covenant of good faith and fair dealing, fraud, unjust enrichment and indemnification, she finds there are genuinely disputed issues of fact surrounding the source of the funds utilized to satisfy defendants' obligations under the settlement agreement, which are sufficient to defeat summary judgment. She would reverse and remand for trial on those remaining claims.