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Federalpha Steel LLC Creditors Trust v. Fed. Pipe & Steel Corp. (In re Federalpha Steel LLC)

Federalpha Steel LLC Creditors Trust v. Fed. Pipe & Steel Corp. (In re Federalpha Steel LLC)

Ruling
Court ruled it lacked jurisdiction over state law claims that were not related to debtor's case and abstained on fraudulent transfer claim since such claim duplicated state court issue.
Procedural posture

Plaintiff, an unsecured creditors'trust created by a confirmed plan of a bankruptcy debtor which was a limited liability company, brought an adversary proceeding against defendants, a former member of the debtor and related entities and individuals, asserting fraudulent and preferential transfer claims and claims under state law. Defendants moved to dismiss and for abstention.

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opinion summary, case decided on May 31, 2006 , LexisNexis #0606-140