Judge Refuses to Dismiss WCI Adversary Proceeding Against Fla. Homeowners

WILMINGTON, Del. — WCI Communities can proceed with an adversary proceeding the bankrupt builder brought against a Florida couple who filed a Chinese drywall claim for damage to their WCI-built home after the company’s plan of reorganization was confirmed. WCI Communities Inc. v. Espinal, et al., No. 09-52250 (D. Del. Bankr.).

Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware denied a motion to dismiss the case June 1, determining that the associations named as defendants in the Florida class action could be considered non-debtor affiliates of WCI released from claims under the plan.