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Johnson v. Allied Recycling Inc.

A recycling company regained its right to pursue its claim against a defunct company and the defendant personally for her conversion and/or misuse of company assets, as well as her commingling of company assets with her own, after the company's bankruptcy case was closed.

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Dana Johnson “Dana”1 brings this interlocutory appeal from the denial of her motion to dismiss the claims asserted against her by Allied Recycling, Inc. Dana contends that the trial court erred in denying her motion because Allied’s claims against her are barred by the bankruptcy filing of one of her co-defendants, Demon Demo, Inc. Specifically, Dana argues that because Allied’s complaint alleges the improper use of Demon Demo’s assets, including the fraudulent transfer of those assets to her and/or her conversion of those assets to her personal use, Allied is not the proper party to assert those claims. Rather, the claims belong to Demon Demo’s trustee in bankruptcy. We disagree, and therefore affirm the order of the trial court.

“Because this appeal involves a question of law, we review both the record and the decision of the court below de novo.” Citation omitted. Outlaw v. Rye, 312 Ga. App. 579, 580 718 SE2d 905 2011. And because this appeal involves a motion to dismiss, in analyzing the legal issue presented “we view all of Allied’s well-pleaded material allegations as true, and view all denials by Dana as false, noting that we are under no obligation to adopt either party’s legal conclusions based on these facts.” Citation omitted. Love v. Morehouse College, 287 Ga. App. 743-744 652 SE2d 624 2007.

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