Case Summary:
Plaintiff filed this adversary proceeding to recover money from the Debtors for alleged damages to collateral under state law causes of action. Plaintiff had received a judgment of strict foreclosure in state court and discovered damages to the property after retaking possession. Plaintiff named the Debtors’ insurer as a co-defendant. The insurer moved for Judgment on the Pleadings to dismiss the claims asserted against it. The Court granted the motion because the Plaintiff’s allegations, as pled and asserted in its amended complaint, described intentional damages by the Debtors that did not trigger an initial grant of coverage under the insurance policy. The Court examined the substance of the allegations and determined that it was not bound to blindly accept the “negligence” labels attached to the Plaintiff’s claims. The Court also determined that the Plaintiff’s first-party property damage claim was barred by the twelve-month statute of limitations under Wis. Stat. § 631.83(1)(a). The Court’s decision made no findings about the merits of the Plaintiff’s adversary action against the Debtors.

Rule References:
Fed. R. Bankr. P. 7012(b) -- Judgment on the Pleadings
Fed. R. Civ. P. 10(c) -- Form of Pleadings
Fed. R. Civ. P. 12(c) -- Judgment on the Pleadings
Fed. R. Civ. P. 12(d) -- Presenting Matters Outside of Pleadings

Key Terms:
Facial Plausibility
Initial Grant of Insurance Coverage
Judgment on the Pleading