IN RE THE BROWN SCHOOLS

Bankruptcy No. 05-10841, Adversary No. 06-50861 (MFW).

368 B.R. 394 (2007)

In re THE BROWN SCHOOLS, et al., Debtors. George L. Miller, Chapter 7 Trustee, Plaintiff, v. McCown De Leeuw & Co., Inc.; Kids Acquisition, LLC; McCown de Leeuw & Co. III, L.P.; MDC Management Company, III, L.P.; MDC Management Company, IIIA, L.P.; McCown de Leeuw & Co. III (Europe), L.P.; McCown de Leeuw & Co. III (Asia), L.P.; Gamma Fund LLC, McCown de Leeuw & Co. IV, L.P.; McCown de Leeuw & Co. IV Associates, L.P.; Delta Fund LLC; MDC Management Company IV, LLC; McCown de Leeuw & Co., LLC; George McCown; Robert Hellman; Robert J. Naples; and, Winstead Sechrest & Minick, P.C., Defendants.

United States Bankruptcy Court, D. Delaware.

June 5, 2007.


Attorney(s) appearing for the Case

Steven M. Coren, Esquire Larry H. Spector, Esquire, John W. Morris, Esquire, Kaufman, Coren, & Ress, P.C., Philadelphia, PA, John T. Carroll, III, Esquire, Cozen O'Connor, Wilmington, DE, for the Trustee.

Robert L. Eisenbach, III, Esquire, Steve Friedlander, Esquire, Curtis Renoe, Esquire, Cooley, Godward, Kronish LLP, San Francisco, CA, Ronald Sussman, Esquire, Jeffrey L. Cohen, Esquire, Melissa S. Harrison, Esquire, Cooley, Godward, Kronish LLP, New York, NY, William Bowden, Esquire, Ricardo Palacio, Esquire, Ashby & Geddes, LLP, Wilmington, DE, for the MDC Defendants.

John K. Knight, Esquire, Richards, Layton & Finger P.A., Wilmington, DE, Rod Phelan, Esquire, David Genender, Esquire Thomas O'Brien, Esquire, Baker Botts LLP, Dallas, TX, for Winstead, Sechrest & Minick, P.C.

Thomas P. Preston, Esquire, Michael D. Debaecke, Esquire, Blank Rome LLP, Wilmington, DE, for Robert J. Naples.


OPINION1

MARY F. WALRATH, Bankruptcy Judge.

Before the Court are the Motions of the MDC Defendants2, Winstead Sechrest & Minick, P.C. ("Winstead"), and Robert J. Naples ("Naples") for dismissal of the complaint filed against them by the trustee. For the reasons stated below, the Court will grant the Motions in part.

I. BACKGROUND

In 1997 and 1998, the Debtors...

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