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§ 1334

Barsness v. Wishire Credit Corp. (In re Barsness)

Ruling
Adversary proceeding to stop foreclosure dismissed upon closing of debtor's no-asset case.
Procedural posture

Defendant lender foreclosed upon its mortgage several months before plaintiff debtor, acting pro se, filed a chapter 7 petition. Debtor filed a document seeking injunctive relief to stop the foreclosure action. The document was treated as a complaint to commence an adversary proceeding. The bankruptcy trustee filed a no-asset case notice. Debtor received a discharge. The case was closed. Debtor sought to dismiss the adversary proceeding.

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Consumer opinion summary, case decided on December 19, 2008 , LexisNexis #0209-061

Lodge at Sonterra Ltd. v. PNC Fin. Servs. Group Inc.

Ruling
Claims related to bankruptcy of management company but that were not core matters remanded to state court.
Procedural posture

Plaintiffs, 23 limited partnerships and an individual, sued defendants, a financial services company, a bank, and two limited liability companies (LLC), in state court. The financial services company and the bank removed the case to federal court pursuant to 28 U.S.C.S. §§ 1334(b) and 1452(a). They moved to transfer the case to bankruptcy court and for an order to implement Local Rule 83.4.1. The partnerships and the LLCs moved to remand.

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Commercial opinion summary, case decided on December 17, 2008 , LexisNexis #0209-035

National Retail Dev. Partners I LLC v. Maness (In re Mortgages Ltd.)

Ruling
Action against debtor's investors for failure to fund construction loan was a core proceeding.
Procedural posture

Plaintiff retail developer sued defendant chapter 11 debtor's investors in state court, alleging breach of contract on the ground that they assumed some of the debtor's obligation to fund a construction loan to the developer, and then failed to fully fund that loan. After the case was removed to the bankruptcy court, the developer moved to remand on three alternative grounds.

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Commercial opinion summary, case decided on December 11, 2008 , LexisNexis #0209-060

Joremi Enters. v. Hershkowitz (In re New 118th LLC)

Ruling
Guarantee dispute remanded pursuant to mandatory abstention once established that the matter would not affect administration.
Procedural posture

Plaintiff investors brought an action in state court against defendants: debtor, three individuals, et al. After that court ordered relief against the affiliated debtors, plaintiffs removed the action to district court which referred it to the instant court. Plaintiffs assigned the proceeds of their claims to debtors'estates, and filed an amended complaint, which dropped all defendants other than the individuals, one of which moved to remand.

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Commercial opinion summary, case decided on November 13, 2008 , LexisNexis #1208-091

Krys v. Sugrue

Ruling
Motion to remand fraud action directly related to debtors'bankruptcy denied.
Procedural posture

Plaintiff trustee of a litigation trust which was assigned claims of the estate of a bankruptcy debtor, brought actions in state courts against defendants, agents and insiders of the debtor and others, including a bank, alleging that defendants aided and abetted the debtor's fraud. The actions were removed to federal court, the trustee moved to remand the actions, and the bank moved to refer claims against it to the bankruptcy court.

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Commercial opinion summary, case decided on October 23, 2008 , LexisNexis #1108-104

American Chem. Serv. Site RdRa Agreement Mbrs v. Admiral Ins. Co.

Ruling
Declaratory judgment proceeding was not "related to" defendant debtor's bankruptcy.
Procedural posture

Plaintiff claimant sought a declaration that defendants, insurers of a chapter 7 debtor, were obligated to provide coverage for debtor's liability for environmental damage at an Indiana Superfund site. Before the court, inter alia, was the claimant's motion to remand the case to the Marion County (Indiana) Environmental Court. The claimant also requested that it be awarded costs, expenses, and attorney fees under 28 U.S.C.S. § 1447(c).

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Commercial opinion summary, case decided on October 17, 2008 , LexisNexis #1208-070

Linnemann v. Post (In re Mission Bay Ski & Bike Inc.)

Ruling
Action for breach of guarantee agreement that could reduce claims against estate was "related to" debtor's bankruptcy.
Procedural posture

Debtor corporation defaulted on a note and filed for chapter 11. Plaintiffs purchased the note from the lender. Defendant signed an agreement guaranteeing payments under the note. Plaintiffs sued defendant in state court. Defendant removed the action to the bankruptcy court under 28 U.S.C.S. § 1452 and Fed. R. Bankr. P. 9027. Plaintiffs moved to remand, arguing the bankruptcy court lacked subject matter jurisdiction under 28 U.S.C.S. § 1334(b).

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Commercial opinion summary, case decided on October 15, 2008 , LexisNexis #0209-062

Schwab v. Beneficial Consumer Discount Co. (In re Bowler)

Ruling
Bankruptcy court abstained from hearing trustee's claims regarding secured status of creditor's claim and alleged violations of Truth in Lending Act.
Procedural posture

Defendant lender filed a motion to dismiss plaintiff trustee's adversary complaint to determine that the creditor did not have a secured interest in the debtors'property subject to a mortgage and for damages under the Truth in Lending Act (TILA).

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Consumer opinion summary, case decided on October 14, 2008 , LexisNexis #0109-027

Lone Star Fund V (U.S.) LP v. Barclays Bank PLC

Ruling
Securities claims were related to debtor's bankruptcy but dismissed as insufficiently plead.
Procedural posture

Plaintiff securities purchasers sued defendant sellers in state court, alleging fraud related to mortgage pass-through certificates and contending that the sellers made representations that were false and violated the terms of the associated offering documents, in violation of federal and Texas securities laws. After removal to federal district court, the purchasers moved to remand or for discretionary abstention. the sellers moved to dismiss.

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Commercial opinion summary, case decided on September 30, 2008 , LexisNexis #1008-131

Greene v. Burke (In re Burke)

Ruling
Bankruptcy court properly reviewed validity of state court judgment that recognized judgment against debtor by Mexican court.
Procedural posture

Appellee debtor filed an adversary proceeding against appellant creditor, seeking a judgment that a claim the creditor filed against the debtor's bankruptcy estate was invalid. On remand from a decision by the district court, the Bankruptcy Court for the District of Colorado sustained the debtor's objections to the creditor's claim. The creditor appealed.

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Consumer opinion summary, case decided on September 29, 2008 , LexisNexis #1008-104