Mineral Resources International, Inc. v. Trace Minerals Research, L.C. (In re Mineral Resources International, Inc.)

565 B.R. 684
CourtUnited States Bankruptcy Court, D. Utah
DecidedJanuary 13, 2017
DocketBankruptcy Case No. 13-30606; Adversary Proceeding No. 15-2151
StatusPublished
Cited by2 cases

This text of 565 B.R. 684 (Mineral Resources International, Inc. v. Trace Minerals Research, L.C. (In re Mineral Resources International, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mineral Resources International, Inc. v. Trace Minerals Research, L.C. (In re Mineral Resources International, Inc.), 565 B.R. 684 (Utah 2017).

Opinion

MEMORANDUM DECISION

R. KIMBALL MOSIER, U.S. Bankruptcy Judge

The matter before the Court is the motion for summary judgment filed by the Plaintiff, Mineral Resources International, Inc. (MRI). Through the motion, MRI seeks to disallow proof of claim #22-1, filed by Trace Minerals Research, L.C. (TMR).

Afteh considering the relevant filings in this adversary proceeding, including MRI’s motion and supporting memorandum, TMR’s memorandum in opposition, and the parties’ supplemental briefing; after considering the oral arguments of counsel; and after conducting an independent review of applicable law, the Court issues the following Memorandum Decision. This Memorandum Decision constitutes the Court’s findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a), made applicable in adversary proceedings through Federal Rule of Bankruptcy Procedure 7052.1

I. JURISDICTION

The Court’s jurisdiction over this adversary proceeding is properly invoked pursuant to 28 U.S.C. § 1334 and § 157(b)(1). This matter is a core proceeding within the definition of 28 U.S.C. § 157(b)(2)(B), and the Court may enter a final order. Venue is appropriate under 28 U.S.C. § 1409.

II. DISCUSSION

Under Federal Rule of Civil Procedure 56(a), made applicable in adversary proceedings by Federal Rule of Bankruptcy Procedure 7056, the Court is required to “grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”2 Substantive law determines which facts are material and which are not. “Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of súm-[689]*689mary judgment.”3 Whether a dispute is “genuine” turns on whether “the evidence is such that a reasonable [fact finder] could return a verdict for the nonmoving party.”4 In sum, the Court’s function at the summary judgment stage is to “determine whether there is a genuine issue for trial.” 5

The moving party bears the burden to show that it is entitled to summary judgment,6 including the burden to properly support its summary judgment motion as required by Rule 56(c).7 If the moving party has faded to meet its burden, “summary judgment must be denied,” and the nonmoving party need not respond because “no defense to an insufficient showing is required.”8 Once the moving party meets its initial burden, “the burden shifts to the nonmoving party to demonstrate a genuine issue for trial on a material matter.” 9 The nonmoving party may not rely solely on allegations in the pleadings, but must instead designate “specific facts showing that there is a genuine issue for trial.”10 The nonmoving party also “must do more than simply show that there is some metaphysical doubt as to the material facts.”11

When considering a motion for summary judgment, the Court views the record and draws all reasonable inferences therefrom in the light most favorable to the nonmov-ing party,12 but the Court does not weigh the evidence or make credibility determinations.13

Based on the record before it, the Court finds that the following facts are undisputed:

1. MRI filed the current chapter 11 bankruptcy case on September 16, 2013.
2. On January 20, 2014, TMR filed proof of claim #22-1 in the amount of $350,000. The asserted basis for the claim is “[djamages for defamation/unfair competition.”
3. MRI filed an objection to that proof of claim on August 11, 2014.
4. The alleged instances of defamation are limited to three publications: a paper written by Wade C. Roberts, Ph.D., called Extracting Minerals from the Great Salt Lake: Great Find or Great Fraud? (Roberts Paper) and two videos featuring John Heinerman posted to YouTube called Trace Minerals Research: The Truth Revealed and Trace Minerals Research: The Truth Revealed Part II (Heinerman Videos).14
[690]*6905. MRI assisted Mr. Heinerman in producing the Heinerman Videos.
6. MRI published the Roberts Paper on its website, in several press releases, in a newsletter, and in an email blast on July 26 and 27, 2010.
7. MRI republished the Roberts Paper in August 2010.
8. The First Heinerman Video was published on YouTube in April 2011. MRI published links to that video on its own website shortly thereafter.
9. The Second Heinerman Video was published on YouTube in August 2011. MRI again published links to that video on its own website shortly thereafter.
10. The Roberts Paper and the Heiner-man Videos were on MRI’s website on the petition date.

MRI’s complaint seeks disallowance of TMR’s claim under 11 U.S.C, § 502(b)(1).15 In resolving a claim objection under that provision, the Court must “determine the amount of such claim ... as of the date of the filing of the petition” and “allow such claim in such amount, except to the extent that — (1) such claim is unenforceable against the debtor and property of the debtor, under any agreement or applicable law for a reason other than because such claim is contingent or unma-tured.” 16 TMR has properly filed its proof of claim, which is prima facie evidence of its validity and amount under Rule 3001(f).

[T]he well-established burdens of proof provide that the objecting party has the burden of going forward with evidence supporting the objection. Such evidence must be of probative force equal to that of the allegations contained in the proof of claim. However, an objection raising only legal issues is sufficient. Once the objecting party has reached this threshold, the creditor claimant has the ultimate burden of persuasion as to the validity and amount of the claim. The standard of proof is a preponderance of the evidence.17

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Related

In re High Plains Computing, Inc.
596 B.R. 896 (D. Colorado, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
565 B.R. 684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mineral-resources-international-inc-v-trace-minerals-research-lc-in-utb-2017.