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IN RE CROWLEY, MILNER AND CO.

Bankruptcy Nos. 99-41767, 99-41770, Adversary No. 00-4655.

299 B.R. 830 (2003)

In re CROWLEY, MILNER AND COMPANY, Debtor. In re Steinbach Stores, Inc., Debtor. The Official Committee of Unsecured Creditors of Crowley, Milner and Company and the Official Committee of Unsecured Creditors of Steinbach Stores, Inc., Plaintiffs, v. Dennis Callahan and John Dallacqua, as officers and/or directors of Crowley, Milner and Company and Steinbach Stores, Inc., Defendants.

United States Bankruptcy Court, E.D. Michigan, Southern Division.

October 1, 2003.

Attorney(s) appearing for the Case

Marc M. Bakst, Detroit, MI, Sonia U. Chae, Robert J. Diehl, Jr., Detroit, MI, Gary W. Faria, Bloomfield Hills, MI, David K. Faust, Office of the Atty. General/Collections, Detroit, MI, Dennis M. Haley, Grand Blanc, MI, Vicki R. Harding, Detroit, MI, Neil E. Herman, Steven J. Reisman, New York City, John D. Hertzberg, Esq., Bingham Farms, MI, Robert S. Hertzberg, Donald J. Hutchinson, Peter A. Jackson, Daniel G. Kielczewski, Kay Standridge Kress, Mark T. Nelson, Kevin C. Richard, Jay L. Welford, Richard A. Sundquist, Detroit, MI, Terrance A. Keith, Thomas E. Marshall, Troy, MI, Richardo I. Kilpatrick, Auburn Hills, MI, Paul Magy, Southfield, MI, Jeffrey Meyers, Philadelphia, PA, Kevin M. Newman, Syracuse, NY, Michael I. Zousmer, Bloomfield Hills, MI, Michael H. Traison, Miller, Canfield, Paddock & Stone, Barry A. Steinway, Birmingham, MI, Steve Sowell, Mt. Clemons, MI, for creditors.

Earle I. Erman, Southfield, MI, Judy A. O'Neill, Detroit, MI, Adam C. Rogoff, Cadwalader, Wickersham & Taft, New York City, for debtor.

Tauras N. Ziedas, Detroit, MI, U.S. Trustee.

Ronald R. Sussman, New York City, Deborah L. Fish, Detroit, MI, for Official Committee of Unsecured Creditors of Crowley, Milner and Company.

OPINION GRANTING DEFENDANT DENNIS CALLAHAN'S MOTION TO DISMISS

PHILLIP J. SHEFFERLY, Bankruptcy Judge.

I. Introduction

This matter comes before the Court upon a motion to dismiss filed by Defendant, Dennis Callahan ("Callahan"). The motion to dismiss is made pursuant to Fed.R.Civ.P. 12(b)(6) and 56 as made applicable to this adversary proceeding by Fed. R. Bankr.P. 7012(b)(6) and 7056. The motion was heard by the Court on September...

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