Answer a Complaint filed by Wells Fargo in North Carolina Superior Court, Stonebridge asserted several counterclaims. When Stonebridge later filed Chapter 11, the state court action was removed to bankruptcy court. Following the heightened pleading standards of Iqbal/Twombley, Wells Fargo sought dismissal of the counterclaims under Rule 12(b)(6) for failing to state claims for relief that were facially plausible. Stonebridge argued that the more permissive North Carolina pleading standards should apply, as the case originated in state court. The Bankruptcy Court rejected this holding the Federal Rules "govern procedural law and North Carolina ‘pleading requirements, so far as they are concerned with the degree of detail to be alleged, are irrelevant in federal court even as to claims arising under state law.’ " See Jackson v. Mecklenburg County, 2008 U.S. Dist. LEXIS 104410, *5-6 (W.D.N.C. July 30, 2008) (quoting Andresen v. Diorio, 349 F.3d 8, 17 (1st Cir. 2003)). The Court then further held that Stonebridge had failed to meet the Iqbal/Twombley standard for any of its counterclaims.
Wells Fargo v. Stonebridge- IqbalTwombley Pleading of Claims Removed to Bankruptcy Court.PDF
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