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§ 1334

Goodman v. California Portland Cement Co. (In re GTI Capital Holdings LLC)

Ruling
Bankruptcy court had ancillary jurisdiction over dispute between creditors and debtors' guarantors.
Procedural posture

Plaintiff guarantors filed an action in the Maricopa County Superior Court (Arizona), alleging that defendants, a California corporation and others, committed fraud and engaged in racketeering. Defendants removed the action to the bankruptcy court, and the guarantors filed a motion to remand. Defendants filed a motion to dismiss the guarantors' claims and sought an order prohibiting the guarantors from filing further actions.

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Commercial opinion summary, case decided on September 15, 2009 , LexisNexis #1109-035

Beechgrove Redevelopment Phase II LLC v. Wilson

Ruling
Court abstained from determination of state personal injury claim.
Procedural posture

Before the court were plaintiff company's moved motion for withdrawal of reference of an adversary proceeding and defendant motion for abstention. The case implicated 11 U.S.C.S. § 524 and 28 U.S.C.S. § 1334(c)(1).

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Commercial opinion summary, case decided on September 10, 2009 , LexisNexis #1009-101

Harker v. Wells Fargo Bank (In re Krause)

Ruling
Putative class action mortgage avoidance proceeding dismissed as court lacked in rem jurisdiction.
Procedural posture

Plaintiff bankruptcy trustee brought a putative class-action adversary proceeding against defendants, a mortgagee and related entities, seeking a declaration that the mortgagee was not a creditor of bankruptcy debtors and seeking to avoid a mortgage lien, an assignment of which was not recorded as required by state law. The mortgagee and the entities moved to dismiss the complaint.

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Consumer opinion summary, case decided on September 01, 2009 , LexisNexis #0909-132

Century 21 Real Estate LLC v. Prestige Realty Group of Ohio & Fla. LLC (In re Prestige Realty Group of Ohio & Fla. LLC)

Ruling
Lanham Act claims were "related to" debtor's bankruptcy.
Procedural posture

Plaintiff filed an amended complaint against defendants, debtor and several individuals, seeking damages for, inter alia, their unauthorized use of its marks under the Lanham Act. Before the court was one of the individual defendant's motion to dismiss the adversary complaint.

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Commercial opinion summary, case decided on August 26, 2009 , LexisNexis #0909-133

Premier Pipe LLC v. J.D. Fields & Co. (In re Hallwood Energy LP)

Ruling
Dispute between debtor, supplier and LLC over damage from improper oil pipe couplings involving state law and parties from same state was subject to mandatory abstention.
Procedural posture

Plaintiff LLC filed an action against defendant supplier in the 189th Civil District Court in Harris County, Texas, seeking a judgment declaring that it was not liable to an energy company and a partnership (debtors) for damage that occurred to an oil well. The LLC removed the case to the bankruptcy court after the debtors declared Chapter 11 bankruptcy, and the supplier filed a motion to remand the case to state court.

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Commercial opinion summary, case decided on August 24, 2009 , LexisNexis #0909-134

Republic Underwriters Ins. Co. v. DBSI Republic LLC (In re DBSI Inc.)

Ruling
Proceeding concerning debtor's ability to assign sublease was a core proceeding of which abstention was denied.
Procedural posture

Plaintiff sublessee of commercial property brought actions in state court against defendant owners of the property seeking a declaration that rejection of a master lease of the property by a bankruptcy debtor terminated the sublease of the sublessee and precluded the debtor's assignment of the sublease to the owners. The actions were removed to bankruptcy court, and the sublessee moved for remand or abstention, and for a preliminary injunction.

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Commercial opinion summary, case decided on August 10, 2009 , LexisNexis #0909-060

Motors Liquidation Co., In re

Ruling
Crossclaim dismissed because trustee is no longer a party to the action and thus bankruptcycourt lacks subject matter jurisdiction over the crossclaim. (Bankr. S.D.N.Y.)
Issue(s)
Bankruptcy Cases and Proceedings.

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Commercial opinion summary, case decided on July 10, 2009 , LexisNexis #0817-085

Capitol Hill Group v. Pillsbury Winthrop Shaw Pittman LLC

Ruling
Legal malpractice claim arising out of debtor's bankruptcy properly removed.
Procedural posture

In a legal malpractice case, appellant former client sought judicial review of the United States District Court for the District of Columbia's denial of its motion to remand and entry of summary judgment in favor of appellee law firm and various attorneys. The case had been removed under 28 U.S.C.S. § 1334(b), so-called arising in bankruptcy jurisdiction, and summary judgment had been granted under the doctrine of res judicata.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on June 26, 2009 , LexisNexis #0709-140

HGC Inc. v. Heatherworld Holdings LLC (In re Heatherworld Holdings LLC)

Ruling
Breach of contract and tortious interference claims against member of debtor LLC remanded to state court.
Procedural posture

Plaintiff corporation brought an action in state court against defendants, a bankruptcy debtor limited liability company and its members, alleging that the debtor breached a contract to operate and maintain the corporation's country club facilities and that the members tortiously interfered with business relations. The action was removed to bankruptcy court, and the corporation moved to remand the claims against the non-debtor members.

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Commercial opinion summary, case decided on June 22, 2009 , LexisNexis #0809-136

Hill v. Day (In re Todays Destiny Inc.)

Ruling
Court exercised permissive abstention with regard to state law claims by debtor's customers against entity that loaned them money.
Procedural posture

Plaintiff filed an action against defendants, a corporate debtor's principals and financial institutions (lenders) that loaned money to intervenors, customers who purchased predictive dialing equipment from the debtor, alleging that the principals breached their fiduciary duties, denuded the corporation, and defrauded customers. Defendants filed motions to dismiss the customers'claims.

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Commercial opinion summary, case decided on May 01, 2009 , LexisNexis #0709-035