Danny C. Kelly (USB 1788)Mark E. Hindley (USB 7222)Bria LaSalle Mertens (USB 14236)STOEL RIVES

 LLP

201 South Main Street, Suite 1100Salt Lake City, UT 84111Telephone: (801) 578-6979Facsimile: (801) 578-6999Counsel for Church of Scientology International andChurch of Scientology of Utah

IN THE UNITED STATES BANKRUPTCY COURTFOR THE DISTRICT OF UTAH, CENTRAL DIVISION

In re:Barry Don Hunter; and Kimberly ChamplinHunter,Debtors.Bankruptcy Case No. 12-26860WTTChapter 7Brian Bagley and L. Carol Bee,Plaintiffs,vs.Barry D. Hunter; Kimberly Champlin Hunter;Portfolio Manager International L.L.C.;Oneiros Technologies L.C.; Michael J. Wright;Gregory B. Madsen; Lucidity Management,LLC; Volition Trading Company, LLC;Church of Scientology of Utah; Cynthia L.Wright; Church of Scientology Mission of SaltLake City; Church of ScientologyInternational; Tom Burton; James D’Arezzo;Alan S. Farr; George Hites; Greg Kingdon;David Petersen; Robby J. Stowe; Sandor Szaniszlo.Defendants.Adversary Proceeding No. 12-02544Hon. William T. Thurman

CHURCH OF SCIENTOLOGYINTERNATIONAL AND CHURCH OFSCIENTOLOGY OF UTAH’SMEMORANDUM IN SUPPORT OF THEIR MOTION TO DISMISS

Case 12-02544 Doc 55 Filed 06/21/13 Entered 06/21/13 18:45:48 Desc Main Document Page 1 of 20

 

Table of ContentsPAGEiI. INTRODUCTION.............................................................................................................1II. BACKGROUND...............................................................................................................3III. ARGUMENT.....................................................................................................................3A. This Court Lacks Jurisdiction Over the Claims Asserted Against theChurches ................................................................................................................3B. All Claims Against the Churches Should Be Dismissed for Failure to Statea Claim...................................................................................................................9C. The Churches Are Entitled to Their Attorneys’ Fees and Costs.......................... 14IV. CONCLUSION................................................................................................................16

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Table of AuthoritiesPAGEii

Cases

 Allstate Ins. Co. v. Countrywide Fin. Corp

.,842 F.Supp.2d 1216 (C.D. Cal. 2012).....................................................................................14

 Ashcroft v. Iqbal 

,129 S. Ct. 1937 (2009)...................................................................................................9, 10, 14

 Bd. of Governors of Fed. Reserve Sys. v. MCorp Fin., Inc

.,502 U.S. 32, 112 S.Ct. 459, 116 L.Ed.2d 358 (1991)................................................................8

 Bell Atl. Corp. v. Twombly

,550 U.S. 544, 127 S. Ct. 1955, 167 L. Ed. 2d 929 (2007).............................................9, 10, 14

 Bly-Magee v. California

 ,

236 F.3d 1014 (9th Cir. 2001) .................................................................................................11

 In re Colorado Energy Supply, Inc.

,728 F.2d 1283 (10th Cir. 1984) .................................................................................................5

 In re Gardner,

913 F.2d 1515 (10th Cir. 1990) .............................................................................................6, 7

 In re Midgard Corporation

,204 B.R. 764 (10th Cir. BAP 1997)...........................................................................................7

 In re Mordini

, No. 11-15491 ABC, 2013 WL 1855751 (Bankr. D. Colo. May 1, 2013) .............................4, 7

 In re Silicon Graphics, Inc. Sec. Litig 

.,970 F.Supp. 746 (N.D. Cal. 1997)...........................................................................................11

 In re W.R. Grace & Co., et al 

.,591 F.3d 164 (3rd Cir. 2009).................................................................................................7, 8

 Pacor, Inc. v. Higgins,

743 F.2d 984 (3d Cir. 1984)...........................................................................................5, 6, 7, 8

Statutes

11 U.S.C. §523.................................................................................................................................411 U.S.C. § 727................................................................................................................................318 U.S.C. § 1962(a), (b), and (c) ...................................................................................................12

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