WENDY L. HAGENAU, Bankruptcy Judge.
This matter comes before the Court on Defendant Brenda Robertson's ("Robertson") Motion to Strike ("Motion") [Docket No. 109]. Robertson filed a motion seeking summary judgment on January 20, 2017 ("Summary Judgment Motion") [Docket No. 76]. After receiving an extension of time to file a response, RES-GA Diamond Meadows, LLC ("RGDM") filed its response to the Summary Judgment Motion on February 28, 2017 ("Response") [Docket No. 100]. Robertson timely filed her reply brief on March 14, 2017 ("Reply Brief") [Docket No. 102], along with a supplemental affidavit ("Supplemental Affidavit") [Docket No. 103]. RGDM filed a sur-reply on March 28, 2017, arguing Robertson's Reply Brief and Supplemental Affidavit included new arguments and evidence that required further response ("Sur-Reply"). In the Motion, Robertson seeks to strike the Sur-Reply on the grounds that a sur-reply is not permitted under local rules of this Court.
As an initial matter, the Court notes it is not procedurally proper to strike a sur-reply.
A sur-reply "is an additional reply to a motion filed after the motion has already been fully briefed."
RGDM's Sur-Reply states Robertson raised three new arguments in her Reply Brief. Initially, RGDM argues the Reply Brief claimed for the first time that res judicata does not apply specifically because Georgia law requires an identity of parties. The Court understands Robertson's original argument regarding the impact of the judgment in question to be that the judgment is binding on Robertson but insufficient to prove intent for the purpose of RGDM's claim under Section 727(a)(2). The Court finds the position asserted in the Reply Brief could be construed as a change in Robertson's position, particularly because Robertson appears to argue in the Reply Brief that the prior judgment does not apply at all with respect to either the Section 727 claim or the Section 523 claim. Accordingly, the Court will consider the portion of RGDM's Sur-Reply related to Robertson's res judicata argument.
Second, RGDM argues Robertson stated for the first time in the Reply Brief that the South Bay Property transfer was a valid transaction for which Robertson received consideration. RGDM's real argument appears to be that Robertson should have provided more specific information regarding the alleged consideration for the South Bay Property prior to filing the Reply Brief. The Court finds Robertson responded to the South Bay Property consideration issue in her response to RGDM's summary judgment motion (Doc. No. 98, ¶ iv., p.5) and in response to RGDM's statement of undisputed facts (Doc. No. 99, ¶ 32, p.11). The Court finds that Robertson's arguments related to the South Bay Property in her Reply Brief are not new arguments and do not warrant a response in the form of a Sur-Reply. The Court will, therefore, not consider the portions of RGDM's Sur-Reply related to the South Bay Property transfer.
RGDM also alleges Robertson addressed the arguments regarding the Supreme Court's decision in
Lastly, RGDM argues new evidence was presented in the Supplemental Affidavit that warrants response, or in the alternative should not be considered for purposes of Robertson's Summary Judgment Motion. The Supplemental Affidavit only provided information in response to RGDM's briefing, and did not include new evidence material to any of RGDM's claims. Therefore, the Court finds the Supplemental Affidavit was properly filed with the Reply Brief.
The Court notes the parties have extensively briefed the cross-motions for summary judgment in this adversary proceeding. Both motions have been fully briefed. At RGDM's request, the Court permitted the parties to add fifteen additional pages to their respective summary judgment motions, a substantial increase over what is permitted under this Court's local rules.
The clerk is directed to serve a copy of this order on Plaintiff's counsel and counsel for Defendant.