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§ 1334

Century Forest Prods. V. H.W. Indus. (In re Century Forest Prods.)

Ruling
Bankruptcy court abstained from hearing state law collection proceeding.
Procedural posture

Plaintiff, a chapter 11 corporate debtor, filed an adversary proceeding against defendant, a Florida corporation, claiming that it was entitled to recover a prepetition account receivable from the Florida corporation in the amount of $ 3,593. The Florida corporation was served at its address in Florida, but did not file an answer or other responsive pleading. The debtor filed a motion for entry of default and default judgment.

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Commercial opinion summary, case decided on December 15, 2009 , LexisNexis #0410-136

Fortune Bank v. Stocker Constr. Co. (In re Stocker Constr. Co.)

Ruling
Abstention denied where diversity jurisdiction existed and core matters were involved.
Procedural posture

Creditor filed a motion for mandatory abstention pursuant to 28 U.S.C.S. § 1334(c)(2) or in the alternative, permissive abstention pursuant to § 1334(c)(1). Respondent, another creditor, objected to the motion.

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Commercial opinion summary, case decided on December 11, 2009 , LexisNexis #0210-067

Atlas v. Chrysler LLC

Ruling
Products liability action transferred to district court where defendant's bankruptcy case was pending.
Procedural posture

Plaintiff, individually, and as administratrix of the deceased's estate, sued defendant car maker and several component parts manufacturers, alleging theories of products liability, negligence, and breach of warranty. The car maker and manufacturer A had filed for bankruptcy in the Southern District of New York. Pursuant to 28 U.S.C.S. § 157(b)(5), manufacturer B moved to transfer venue, and the administratrix moved to remand or to abstain.

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Commercial opinion summary, case decided on December 08, 2009 , LexisNexis #0110-128

Barbaro v. Wider (In re Wider)

Ruling
Bankruptcy court abstained from hearing adversary proceeding concerning state court actions involving state law.
Procedural posture

Plaintiff creditors filed a complaint against defendant chapter 7 debtor objecting to the dischargeability of certain alleged debts under 11 U.S.C.S. § 523(a). The creditors also sought to block the debtor's discharge pursuant to 11 U.S.C.S. § 727. The court issued an order to show cause why it should not abstain under 28 U.S.C.S. § 1334 from hearing the adversary as to the claims under 11 U.S.C.S. § 523(a).

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Consumer opinion summary, case decided on November 30, 2009 , LexisNexis #0110-065

Stabler v. Beyers (In re Stabler)

Ruling
Bankruptcy court properly abstained from determining if debts owed creditors were postpetition and not subject to discharge injunction.
Procedural posture

Plaintiff debtors sought review of an order of the bankruptcy court for the District of South Dakota, which granted the motion of defendant assignee to dismiss the debtors' adversary proceeding based on the application of collateral judgment to a prior state court judgment and on a determination that permissive abstention was warranted under 28 U.S.C.S. § 1334(c)(1).

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on November 30, 2009 , LexisNexis #1209-105

Rayonier Wood Prods. LLC v. ScanWare Inc.

Ruling
Bankruptcy court properly remanded breach of contract action.
Procedural posture

Appellee wood product company sought damages for breach of contract against appellees, debtor and one of its minority owners, in state court. Debtor subsequently petitioned for bankruptcy in Oregon, the owner then removed the state court action to bankruptcy court in Georgia, and the company moved that court to remand and/or abstain. The Georgia bankruptcy court granted the company's motion and the owner appealed that decision.

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Commercial opinion summary, case decided on November 30, 2009 , LexisNexis #1209-097

Hayim v. Goetz (In re SOL LLC)

Ruling
Estate's claim for possible real estate commission from escrowed funds held by third party remanded as an issue more properly litigated in state court.
Procedural posture

Plaintiff, the plaintiff in a state court action seeking the return of escrowed funds for violation of disclosure duties under Fla. Stat. § 475.278, moved to strike the trustee's notice of removal, or for abstention, pursuant to 28 U.S.C.S. § 1334(c)(1) and (2), or remand. The trustee sought to remove the plaintiff's action to the bankruptcy court, asserting the debtor had a possible claim to a commission from the funds.

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Commercial opinion summary, case decided on October 26, 2009 , LexisNexis #1209-064

Bank of Am. v. Lightstone Holdings (In re Extended Stay Inc.)

Ruling
Action by lender and purchaser of mortgage debt against guarantors, lenders and debtor's principals remanded as having no conceivable effect on estate.
Procedural posture

As a result of debtors' bankruptcies, plaintiff holder of an interest in a mortgage trust brought an action against defendant co-holders, plaintiff lender brought an action against defendant guarantors, and plaintiff purchaser of mortgage debt brought an action against defendants, lenders and principals of the debtors. The actions were removed to bankruptcy court and the holder, the lender, and the purchaser moved to remand the actions.

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Commercial opinion summary, case decided on October 07, 2009 , LexisNexis #1109-065

Silliman v. GMC

Ruling
Trustee's action on behalf of debtor auto dealership against manufacturer remanded as non- core.
Procedural posture

Plaintiff, a chapter 7 trustee for a debtor automobile dealership, brought the instant the civil action against defendant automobile manufacturer and alleged violations of the Georgia Motor Vehicle Dealer's Day in Court Act, the Automobile Dealer's Day in Court Act, the Uniform Deceptive Trade Practices Act, as well as breach of oral agreement, fraud in the inducement, among other things. The trustee moved to remand to state court.

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Commercial opinion summary, case decided on September 21, 2009 , LexisNexis #1009-057

Taub v. Hershkowitz (In re Taub)

Ruling
Bankruptcy court abstained from non-core eviction action against debtor's tenants.
Procedural posture

Plaintiff bankruptcy debtor-in-possession, a landlord of an apartment building, brought an adversary proceeding against defendant tenants seeking unpaid rent or eviction of the tenants, and the tenants counterclaimed for remediation of hazardous and deplorable conditions of the building. The tenants moved for abstention under 28 U.S.C.S. § 1334(c) in favor of resolution in the New York City Housing Court.

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Consumer opinion summary, case decided on September 21, 2009 , LexisNexis #1009-100