{"id":"court_ctb_3084_0","court":"CTB","case_no":"22-50073","doc_number":3084,"sub_number":0,"doc_type":"ORDER","filed_date":null,"title":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION In re:","summary_zh":null,"summary_en":null,"body_en":"## UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION\n\nIn re:\n\nHO WAN KWOK, *et al.*,\n\nDebtors.\n\nCHAPTER 11\n\nCase No. 22-50073 (JAM)\n\n(Jointly Administered)\n\nRe: ECF No. 3003\n\n# **LIMITED OBJECTION OF ANTHEM HEALTHCHOICE ASSURANCE, INC. F/K/A EMPIRE HEALTHCHOICE ASSURANCE, INC. D/B/A EMPIRE BLUE CROSS BLUE SHIELD, AND ANTHEM HEALTH PLANS, INC. TO CHAPTER 11 TRUSTEE'S MOTION, PURSUANT TO 11 U.S.C. §§ 105(a) AND 363, FEDERAL RULES OF BANKRUPTCY PROCEDURE 7016, 7026, AND 9006, AND DISTRICT OF CONNECTICUT LOCAL BANKRUPTCY RULE 7016-1, TO MODIFY PROCEDURES APPLICABLE TO AVOIDANCE CLAIM ADVERSARY PROCEEDINGS TO INCLUDE PROCEDURES FOR MEDIATION OF AVOIDANCE ACTIONS**\n\nAnthem HealthChoice Assurance, Inc. f/k/a Empire HealthChoice Assurance, Inc. d/b/a Empire Blue Cross Blue Shield (\"Empire\") and Anthem Health Plans, Inc. (\"Anthem\") 1 respectfully submit this limited objection (the \"Objection\") to the *Chapter 11 Trustee's Motion, Pursuant to 11 U.S.C. §§ 105(a) and 363, Federal Rules of Bankruptcy Procedure 7016, 7026, And 9006, and District of Connecticut Local Bankruptcy Rule 7016-1, to Modify Procedures Applicable to Avoidance Claim Adversary Proceedings to Include Procedures for Mediation of Avoidance Actions* [Docket No. 3003] (the \"Motion\"), filed by Luc A. Despins, chapter 11 trustee (the \"Trustee\") appointed for the chapter 11 debtors (collectively, the \"Debtors\") in the abovecaptioned chapter 11 cases. In support of this Objection, Empire / Anthem respectfully state as\n\n<sup>1</sup> Empire and Anthem are both affiliates of Elevance Health, Inc. Empire and Anthem are represented by the same legal counsel and are therefore filing one limited objection together as an administrative convenience to the Court and parties.\n\nfollows:\n\n### **I. BACKGROUND**\n\n1. On January 29, 2024, the Trustee filed the *Motion for Order Approving Procedures Applicable to Avoidance Claim Adversary Proceedings* [Docket No. 2532] (the \"Avoidance Procedures Motion\"), requesting that the Court approve Avoidance Action Procedures (as defined in the Avoidance Procedures Motion) to govern numerous Avoidance Actions (as defined in the Avoidance Procedures Motion) contemplated by the Trustee.\n\n2. On February 7, 2024, the Court entered its *Order Approving Procedures Applicable to Avoidance Claim Adversary Proceedings* [Docket No. 2578] (the \"Avoidance Procedures Order\") granting the Avoidance Procedures Motion.\n\n3. On February 11, 2024, the Trustee filed the *Complaint of Chapter 11 Trustee Seeking Avoidance and Recovery of Postpetition Transfers and Related Relief Pursuant to Bankruptcy Code Sections 549 And 550* [Adv. Pro. No. 24-05112 (\"Empire Adv. Pro.\"), Docket No. 1] (the \"Empire Complaint\"), naming Empire as the Defendant. On February 11, 2024, the Trustee also filed the *Complaint of Chapter 11 Trustee Seeking Avoidance and Recovery of Postpetition Transfers and Related Relief Pursuant to Bankruptcy Code Sections 549 And 550*  [Adv. Pro. No. 24-05058 (\"Anthem Adv. Pro.\"), Docket No. 1] (the \"Anthem Complaint\" and together with the Empire Complaint, the \"Complaints\"), naming Anthem as the Defendant.\n\n4. On March 15, 2024, the Trustee filed the Motion, requesting that the Court revisit the Avoidance Action Procedures to provide for mandatory mediation. (*See* Docket No. 3003, ¶¶ 10-12.)\n\n5. On March 22, 2024, the Trustee filed the *[Revised Proposed] Amended Order Approving Procedures Applicable to Avoidance Claim Adversary Proceedings* [Docket No. 3035; Empire Adv. Pro. Docket No. 7; Anthem Adv. Pro. Docket No. 7] in which the Trustee sought to provide that the Mediation Proceedings (as defined in the Motion) would commence upon a defendant appearing in an avoidance action on or before such defendant's deadline to respond to the Trustee's avoidance complaint, rather than requiring the defendant to file a substantive response to an avoidance complaint prior to mediation, among other requested changes.\n\n6. On March 22, 2024, the Court entered the *Scheduling Order Regarding Chapter 11 Trustee's Motion, Pursuant to 11 U.S.C. §§ 105(a) and 363, Federal Rules of Bankruptcy Procedure 7016, 7026, and 9006, and District of Connecticut Local Bankruptcy Rule 7016-1, to Modify Procedures Applicable to Avoidance Claim Adversary Proceedings to Include Procedures for Mediation of Avoidance Actions* [Docket No. 3037] (the \"Scheduling Order\"), setting April 12, 2024, as the deadline to file any response to the Motion and scheduling a hearing on the Motion for April 23, 2024.\n\n#### **II. LIMITED OBJECTION**\n\n7. Empire / Anthem like numerous other similarly situated defendants have found themselves subjected to litigation in this bankruptcy case as a result of receiving a transfer in the ordinary course of business from legal entities that the Trustee now says are \"alter egos\" of the Debtors. Putting aside the merits of these claims, Empire / Anthem have concerns with a few discrete aspects of the mediation procedures sought in the Motion because they unduly impose additional costs on the defendants to the avoidance actions.\n\n8. In the Motion, the Trustee seeks to compel Empire / Anthem to mediate the claims the Trustee brought in the Complaints pursuant to the mediation procedures (the \"Mediation Procedures\") detailed in the Motion. Empire / Anthem do not object to the Motion in its entirety or even engaging in some form of mediation. However, Empire / Anthem do object to the\n\n3\n\nfollowing: (i) paragraph 12(u), which seeks to compel the mediating parties to split equally the Mediation Fee, as defined in the Motion, (ii) paragraph 12(s), which leaves whether a representative of Empire / Anthem (the \"Representative\") needs to be present in person, rather than virtually, for a mediation to the discretion of the mediator, and (iii) paragraph 12(v), which provides that if a party to the mediation is not attempting to schedule or resolve the mediation in good faith, an opposing party may file a motion for sanctions. Each concern is addressed in turn.\n\n9. First, the Motion requires that the Trustee and the defendants split equally the Mediation Fees, and the Motion does not provide a sense of the hourly rate or cap for such fees. While the Motion offers that defendants can by motion make a showing of hardship to perhaps obtain a Court order (or order from Judge Tancredi) that could alter this arrangement, such a motion would require the defendants to further expend resources to obtain relief, in part or in full, from the obligation to pay for a mediation that the Trustee is compelling.\n\n10. Simply put, the bankruptcy estate should pay for the costs of any mediation. The Trustee—not Empire / Anthem—initiated this adversary proceeding. Further, the Trustee is the party that wishes to stay the adversary proceeding and compel Empire / Anthem to mediate the issues underlying the Complaints. The Trustee should therefore be required to cover the entirety of the Mediation Fee. Suing a party, compelling that party to mandatory mediation, and then forcing that party to foot half the bill associated with that mediation is unfair and contrary to common practice. *See, e.g.*, *In re Verasun Energy Corporation, et al.*, Case No. 08-12606 (BLS) (D. Del. Dec 21, 2010) (requiring the party that compelled mediation to cover the entire cost of the mediation); *In re Taylor, Bean & Whitaker Mortgage Corp., et al.*, Case No. 3:09-bk-07047- JAF (Bankr. M.D. Fla. Aug 25, 2011) (same); *In re Red Rose, Inc.*, Case No. BK-S-20-12814-\n\n4\n\nMKN (D. Nev. Aug 12, 2021) (same); *In re TOUSA, Inc., et al.*, Case No. 08-10928-BKC-JKO (Bankr. S.D. Fla. July 14, 2009) (same).\n\n11. Second, in a similar vein, leaving it to the discretion of the mediator whether the Representative must attend a mediation in person that s/he is being compelled to participate in rather than virtually—is unjust. In a time where individuals, law firms, and courts have adapted to conducting business virtually, there is no compelling reason why such efficiencies and cost saving measures should not be utilized here too where there would be no impact to outcome. Empire / Anthem's Representative lives and works in Virginia Beach, Virginia. If forced to attend in person, Empire / Anthem's Representative will incur significant travel, lodging, and loss of time costs. Requiring defendants, like Empire / Anthem, to incur these wholly unnecessary travel related costs to attend a mediation that the Trustee is compelling is again unfair and unjust. Such burdensome costs could be avoided—across hundreds of adversary proceedings—if the decision of whether the Representative attends the mediation in person or virtually is not left to the sole discretion of the mediator.\n\n12. Lastly, Empire / Anthem understand that sanctions may be an appropriate remedy for a party working to stall and stymie a mediation. However, it should be clarified that a party's decision to offer or not offer any particular amount of money, or the inability to reach a settlement through mediation due to zealous advocacy or because a defendant and the Trustee simply cannot reach a resolution due to differing views of the law and facts should not be permitted as a basis for sanctions. In short, the requirement that parties mediate in good faith does not mean that a resolution must be reached through such means.\n\n5\n\n## **III. CONCLUSION**\n\nWHEREFORE, Empire / Anthem respectfully request that the Court take notice of this Objection, modify the Motion's Mediation Procedures as detailed herein, and grant such other relief as the Court deems just, proper, and equitable.\n\nDated: April 11, 2024 DEFENDANT\n\nANTHEM HEALTHCHOICE ASSURANCE, INC. F/K/A EMPIRE HEALTHCHOICE ASSURANCE, INC. D/B/A EMPIRE BLUE CROSS BLUE SHIELD\n\nDEFENDANT ANTHEM HEALTH PLANS, INC.\n\nBy: */s/ Jessica M. Signor*\n\n### SHIPMAN & GOODWIN LLP\n\nEric S. Goldstein (CT27195) One Constitution Plaza Hartford, CT 06103-1919 Telephone: (860) 251-5000 Facsimile: (860) 251-5218 egoldstein@goodwin.com\n\nJessica M. Signor (CT30066) 300 Atlantic Street, 3rd Floor Stamford, CT 06901 Telephone: (203) 324-8100 Facsimile: (203) 324-8199 jsignor@goodwin.com\n\n*Attorneys for Anthem HealthChoice Assurance, Inc. f/k/a Empire HealthChoice Assurance, Inc. d/b/a Empire Blue Cross Blue Shield*\n\n*Attorneys for Anthem Health Plans, Inc.*\n\n#### **CERTIFICATE OF SERVICE**\n\nI hereby certify that on April 11, 2024, a copy of the foregoing Limited Objection was filed electronically and served by mail on anyone unable to accept electronic filing. Notice of this filing will be sent by e-mail to all parties by operation of the Court's electronic filing system or by First Class mail to anyone unable to accept electronic filing as indicated on the Notice of Electronic Filing. Parties may access this filing through the Court's CM/ECF System.\n\n> */s/ Jessica M. Signor*. Jessica M. Signor, Esq.","body_zh":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION（美国康涅狄格区破产法院布里奇波特分院）\n\n关于：\n\nHO WAN KWOK（郭文贵）等，\n\n债务人。\n\n第 11 章\n\n案号：22-50073 (JAM)\n\n（合并审理）\n\n涉及：ECF No. 3003\nANTHEM HEALTHCHOICE ASSURANCE, INC.（前称 EMPIRE HEALTHCHOICE ASSURANCE, INC.，对外以 EMPIRE BLUE CROSS BLUE SHIELD 名义营业）及 ANTHEM HEALTH PLANS, INC. 针对第 11 章受托人依据《美国法典》第 11 编第 105(a) 及 363 条、《联邦破产程序规则》第 7016、7026 及 9006 条以及《康涅狄格区破产法院本地规则》第 7016-1 条提出的修改适用于撤销权主张对席诉讼程序以纳入撤销诉讼调解程序的动议的有限异议\n\nAnthem HealthChoice Assurance, Inc.（前称 Empire HealthChoice Assurance, Inc.，对外以 Empire Blue Cross Blue Shield 名义营业，以下简称「Empire」）及 Anthem Health Plans, Inc.（以下简称「Anthem」）1 对 Luc A. Despins（为上述第 11 章案件中的第 11 章债务人（统称「债务人」）所指定的第 11 章受托人，以下简称「受托人」）提交的《第 11 章受托人依据 11 U.S.C. §§ 105(a) 和 363、《联邦破产程序规则》第 7016、7026 和 9006 条以及《康涅狄格区本地破产规则》第 7016-1 条修改适用于撤销权主张对席诉讼程序以纳入撤销诉讼调解程序的动议》[案卷号 3003]（以下简称「动议」）谨此提交本有限异议（以下简称「异议」）。为支持本异议，Empire / Anthem 谨陈述如下：\n\n1 Empire 与 Anthem 均为 Elevance Health, Inc. 的关联公司。Empire 与 Anthem 由相同的法律顾问代理，因此为向法院及各方当事人提供行政便利，共同提交一份有限异议。\n\nI. 背景\n\n1. 2024年1月29日，受托人提交了《关于批准适用于撤销权主张对席诉讼程序的程序的动议》[案卷号 2532]（以下简称「撤销程序动议」），请求法院批准撤销诉讼程序（定义见《撤销程序动议》），以规范受托人拟提起的众多撤销诉讼（定义见《撤销程序动议》）。\n\n2. 2024年2月7日，法院作出了《批准适用于撤销权主张对席诉讼程序的程序的裁定》[案卷号 2578]（以下简称「撤销程序裁定」），准许了《撤销程序动议》。\n\n3. 2024年2月11日，受托人提交了《第 11 章受托人依据破产法典第 549 条和第 550 条寻求撤销并追回申请后转让及相关救济的起诉书》[对席诉讼案号 24-05112（「Empire 对席诉讼」），案卷号 1]（以下简称「Empire 起诉书」），将 Empire 列为被告。2024年2月11日，受托人亦提交了《第 11 章受托人依据破产法典第 549 条和第 550 条寻求撤销并追回申请后转让及相关救济的起诉书》[对席诉讼案号 24-05058（「Anthem 对席诉讼」），案卷号 1]（以下简称「Anthem 起诉书」，并与《Empire 起诉书》统称「起诉书」），将 Anthem 列为被告。\n\n4. 2024年3月15日，受托人提交了本动议，请求法院重新审视《撤销诉讼程序》以规定强制调解。（见案卷号 3003，¶¶ 10-12。）\n\n5. 2024年3月22日，受托人提交了《[修改后的拟定]批准适用于撤销权主张对席诉讼程序的程序的修改裁定》[案卷号 3035；Empire 对席诉讼案卷号 7；Anthem 对席诉讼案卷号 7]，其中除其他请求的变更外，受托人试图规定，调解程序（定义见本动议）应在被告于撤销诉讼中应诉时（在该被告对受托人的撤销起诉书作出答辩的截止日期或之前）开始，而非要求被告在调解前对撤销起诉书提交实质性答辩。\n\n6. 2024年3月22日，法院作出了《关于第 11 章受托人依据 11 U.S.C. §§ 105(a) 和 363、《联邦破产程序规则》第 7016、7026 和 9006 条以及《康涅狄格区本地破产规则》第 7016-1 条修改适用于撤销权主张对席诉讼程序以纳入撤销诉讼调解程序的动议的排期裁定》[案卷号 3037]（以下简称「排期裁定」），将提交对本动议的任何回应的截止日期定为 2024年4月12日，并安排于 2024年4月23日就本动议举行听证会。\n\nII. 有限异议\n\n7. 与众多处于类似情况的被告一样，Empire / Anthem 发现自己在本破产案件中卷入了诉讼，原因仅是在正常业务过程中接收了来自受托人如今称之为债务人「另一个人格（alter egos）」的法律实体的转让款。暂且不论这些主张的实体是非，Empire / Anthem 对本动议中寻求的调解程序的若干具体方面表示关切，因为这些程序向撤销诉讼的被告不当施加了额外费用。\n\n8. 在本动议中，受托人试图依据本动议中详述的调解程序（以下简称「调解程序」），强迫 Empire / Anthem 就受托人在起诉书中提出的主张进行调解。Empire / Anthem 并不反对本动议的全部内容，甚至也不反对参与某种形式的调解。然而，Empire / Anthem 确实对以下各项提出异议：(i) 第 12(u) 段，该段试图强迫调解各方平摊调解费用（定义见本动议）；(ii) 第 12(s) 段，该段将 Empire / Anthem 的代表（以下简称「代表」）是否需要亲自出席（而非以虚拟网络方式出席）调解的决定权留给调解员自行裁量；以及 (iii) 第 12(v) 段，该段规定若调解的一方未善意尝试安排或解决调解事宜，相对方可提起制裁动议。以下逐项阐述各项关切。\n\n9. 第一，本动议要求受托人与被告平摊调解费用，且本动议未提供此类费用的计时费率或上限标准。虽然本动议提出被告可以通过动议形式说明经济困难，以期可能获得一份可能改变此项安排的法院裁定（或来自 Tancredi 法官的裁定），但此类动议将要求被告进一步耗费资源，以就受托人所强迫进行的调解寻求免除部分或全部支付义务的救济。\n\n10. 简而言之，任何调解的费用均应由破产财团承担。发起本对席诉讼的是受托人——而非 Empire / Anthem。此外，希望中止对席诉讼并强迫 Empire / Anthem 就起诉书所依据的问题进行调解的一方也是受托人。因此，应要求受托人全额承担调解费用。起诉一方当事人、强迫该当事人进行强制调解、继而迫使该当事人为与该调解相关的账单承担半数费用，是不公平的，亦违背了通常做法。参见，例如，In re Verasun Energy Corporation, et al., 案号 08-12606 (BLS) (D. Del. 2010年12月21日)（要求强迫调解的一方承担调解的全部费用）；In re Taylor, Bean & Whitaker Mortgage Corp., et al., 案号 3:09-bk-07047-JAF (Bankr. M.D. Fla. 2011年8月25日)（同上）；In re Red Rose, Inc., 案号 BK-S-20-12814-MKN (D. Nev. 2021年8月12日)（同上）；In re TOUSA, Inc., et al., 案号 08-10928-BKC-JKO (Bankr. S.D. Fla. 2009年7月14日)（同上）。\n\n11. 第二，同理，将代表是否必须亲自出席——而非以虚拟网络方式出席——其被迫参与的调解交由调解员自行裁量，是不公正的。在个人、律师事务所和法院均已适应通过虚拟网络方式开展业务的时代，在对结果没有任何影响的情况下，没有令人信服的理由不在此处同样采用此类提高效率和节约成本的措施。Empire / Anthem 的代表在 Virginia（弗吉尼亚州）Virginia Beach（弗吉尼亚比奇）居住和工作。如果被迫亲自出席，Empire / Anthem 的代表将承担巨大的差旅、住宿和时间损失成本。要求诸如 Empire / Anthem 等被告承担这些完全不必要的差旅相关费用去参加受托人强迫进行的调解，同样是不公平和不公正的。如果在数百起对席诉讼中，代表是亲自出席还是以虚拟网络方式出席调解的决定权不完全留给调解员自行裁量，此类沉重的费用原本是可以避免的。\n\n12. 最后，Empire / Anthem 理解，对于试图拖延和阻挠调解的一方当事人，制裁可能是一种适当的救济手段。但是，应当明确的是，一方当事人决定提供或不提供任何特定金额的款项，或者由于全力辩护或由于被告与受托人因对法律和事实的看法不同而根本无法达成和解，均不得被允许作为制裁的依据。简而言之，各方当事人须善意进行调解的要求并不意味着必须通过该等手段达成解决方案。\n\nIII. 结论\n\n据此，Empire / Anthem 谨请求法院注意到本异议，按照本文详述修改动议中的《调解程序》，并准予法院认为公正、适当和衡平的其他救济。\n\n日期：2024年4月11日 被告\n\nANTHEM HEALTHCHOICE ASSURANCE, INC.（前称 EMPIRE HEALTHCHOICE ASSURANCE, INC.，对外以 EMPIRE BLUE CROSS BLUE SHIELD 名义营业）\n\n被告 ANTHEM HEALTH PLANS, INC.\n\n签署人：/s/ Jessica M. Signor\nSHIPMAN & GOODWIN LLP\n\nEric S. Goldstein (CT27195) One Constitution Plaza Hartford, CT 06103-1919 电话：(860) 251-5000 传真：(860) 251-5218 egoldstein@goodwin.com\n\nJessica M. Signor (CT30066) 300 Atlantic Street, 3rd Floor Stamford, CT 06901 电话：(203) 324-8100 传真：(203) 324-8199 jsignor@goodwin.com\n\nAnthem HealthChoice Assurance, Inc.（前称 Empire HealthChoice Assurance, Inc.，对外以 Empire Blue Cross Blue Shield 名义营业）之代理律师\n\nAnthem Health Plans, Inc. 之代理律师\n\n送达证明\n\n本人特此证明，于 2024年4月11日，上述《有限异议》的一份副本已通过电子方式提交，并已通过邮寄方式送达任何无法接受电子提交的人员。本提交的通知将通过法院电子提交系统的运行以电子邮件形式发送给所有当事人，或按照《电子提交通知》的指示通过一类邮件（First Class mail）发送给任何无法接受电子提交的人员。各方当事人可通过法院的 CM/ECF 系统查阅本次提交的文件。\n\n> /s/ Jessica M. Signor. Jessica M. Signor, Esq.","key_entities":["Je","Kwok","Ho Wan Kwok","Despins","CIPA"],"ecf_references":[{"doc_number":3003,"court":"CTB"}],"word_count":1690,"status":"published","published_at":null,"created_at":null,"updated_at":"2026-08-23 12:58:23"}