A bankruptcy judge on Tuesday dismissed a number of pending claims in an adversary case between Enron Wind Energy Systems LLC and Marathon Electric Manufacturing Corp. over contracts for generators, Bankruptcy Law360 reported yesterday. The recent ruling by Judge Arthur J. Gonzalez dismissed three out of the eight claims pending against Marathon Electric in the adversary case, and dismissed two with the option to replead. The controversy between Enron, which assembled, operated, installed and sold wind turbine systems, and Marathon Electric, which provided generators for the turbines, started in 2001, before Enron filed for bankruptcy. The companies entered into a warranty agreement in January of that year and the agreement covered any generator defects. Enron claimed that many of the generators had problems soon after they were purchased, and filed various warranty notices, both before and after filing for bankruptcy in February and August 2002.

Any recent credit card use no matter how large or how small can be subject to attack by a creditor.  In reality, if the purchase is small, the creditor will not bother to file what is known as an adversarial complaint against the debtor.  An adversarial complaint is a complaint, which attempts to hold the debtor responsible for the purchases that he or she made too close the filing.  The theory of the case is that the debtor actually has committed fraud.  The debtor knew that he or she was filing for bankruptcy, knew that he or she was basically going under, and continued to use the credit cards.  If the creditor is successful, the debtor can be held responsible for the recent charges that were made on that account.

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