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IN RE AUDRE, INC.

Bankruptcy No. 95-10048-B11, Adversary No. 96-90918-B11.

210 B.R. 360 (1997)

In re AUDRE, INC., a California Corporation, Debtor. In re AUDRE RECOGNITION SYSTEMS, INC., a Canadian Corporation, Debtor. AUDRE RECOGNITION SYSTEMS INC. and Audre, Inc., Plaintiffs, v. Catherine CASEY, Steven Sanford, Steven Greenberg Artificial Intelligence Corporation, and Arstk, Inc., Defendants.

United States Bankruptcy Court, S.D. California.

June 11, 1997.

Attorney(s) appearing for the Case

Alan Van Derhoff, Sheppard, Mullin, Richter & Hampton, San Diego, CA, for plaintiff.

Ronald K. Van Wert, Newport Beach, CA, for defendant Casey.

Robert Barnes, Allen, Matkins, Leck, Gamble & Mallory, San Diego, CA, for defendants Sanford, Artificial Intelligence Corp., Greenberg and ARSTK, Inc.

Radmila A. Fulton, San Diego, CA, for Official Creditors' Committee.

Eric L. Hoffland, Peter Salmon, Noorigian & Associates, San Diego, CA, for Artificial Intelligence Corp. and ARSTK.

Dean R. Kirby, Hovey, Kirby, Thornton & Hahn, San Diego, CA, for Official Committee of Unsecured Creditors.

MEMORANDUM DECISION

PETER W. BOWIE, Bankruptcy Judge.

This Court once again finds itself addressing a difficult issue in connection with the Audre, Inc. and Audre Recognition Systems, Inc. ("debtors or plaintiffs") bankruptcy proceeding. Catherine Casey requests that the First Cause of Action in this adversary complaint, seeking subordination of her family law judgment to all creditors of Audre and ARSI, be dismissed because it fails to state a claim,upon...

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