Title Memorandum Opinion entered in Gaske v. Satellite Restaurants Inc. Crabcake Factory USA (In re Satellite Restaurants Inc. Crabcake Factory USA), Adversary Proceeding No. 21-00012.
Maria Ellena Chavez-Ruark
Case Number

Wage claimants brought an adversary proceeding against a Subchapter V corporate debtor requesting that debts based on claims pending in the United States District Court for the District of Maryland for violations of state wage payment laws and the Fair Labor Standards Act (FLSA) be deemed nondischargeable.  The Debtor moved to dismiss for failure to state a claim.  In a matter of first impression, Judge Ruark determined that the exceptions to discharge of debts set forth in Section 523(a) of the Bankruptcy Code do not apply to Subchapter V corporate debtors.