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§ 1334

Guinn v. Jolley Rock Invs. LLC (In re Liberty Fibers Corp.)

Ruling
Action against neighboring property owner for refusal to treat waste water through debtor's facilities was related to debtor's bankruptcy.
Procedural posture

Plaintiffs, a chapter 7 trustee and a property purchaser, filed an action against defendant adjacent property owner, seeking injunctive and declaratory relief and money damages arising in part from the owner's refusal to treat waste water through the purchaser's waste water treatment plant (WWTP). The owner filed a motion to dismiss for lack of subject matter jurisdiction.

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Commercial opinion summary, case decided on April 14, 2008 , LexisNexis #0608-033

Hill v. Brooks (In re Brooks)

Ruling
Bankruptcy court exercised abstention from state eviction action which would not affect administration.
Procedural posture

Plaintiff creditor brought an action in state court against defendant bankruptcy debtor seeking eviction of the debtor from real property and unpaid rent, and the debtor counterclaimed for a declaration that the debtor had an ownership interest in the property. The debtor removed the case to the bankruptcy court, and the creditor moved for remand or abstention under 28 U.S.C.S. §§ 1334(c)(2), 1452(b).

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Consumer opinion summary, case decided on March 28, 2008 , LexisNexis #0808-029

Church at San Francisco Where Jesus is Lord v. Winston (In re Church at San Francisco Where Jesus is Lord)

Ruling
Bankruptcy court lacked subject matter jurisdiction over post-dismissal adversay proceeding concerning postpetition conduct of third parties.
Procedural posture

After debtor's voluntary chapter 11 proceeding was dismissed on the request of the parties, debtor filed an adversary proceeding against certain persons who were involved with property that was a part of the bankruptcy estate. At issue was whether the court had subject matter jurisdiction per 11 U.S.C.S. § 1334(b) over the adversary complaint and whether it ought to grant debtor's ex parte application for a temporary restraining order (TRO).

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Commercial opinion summary, case decided on February 05, 2008 , LexisNexis #0308-104

Cook v. Kmart Corp.

Ruling
State law fraud action was subject to mandatory abstention.
Procedural posture

Defendant corporation initiated bankruptcy proceedings. Plaintiff stockholder purchased 1,000 shares of the corporation's stock. A bankruptcy court confirmed the corporation's joint plan of reorganization, which provided that all existing common stock in the corporation was cancelled. The stockholder brought an action in a state court alleging fraud under state law. The corporation removed the case to the court. The stockholder moved to remand.

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opinion summary, case decided on August 10, 2007 , LexisNexis #0907-104

Peabody Landscape Constr. v. Schottenstein

Ruling
Debtors'state law claims against third parties re-vested with debtors post-confirmation and were no longer within bankruptcy court's "related to"jurisdiction.
Procedural posture

Plaintiff landscape construction company filed a voluntary petition for bankruptcy under chapter 11. Defendants, alleged debtors of the company, pursuant to Fed. R. Civ. P. 12(b)(6), filed motions to dismiss the debtor's contract and restitution claims under state law.

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opinion summary, case decided on July 18, 2007 , LexisNexis #0907-035

Kinder MorgenPinney Dock & Transp. LLC v. Mittal Steel USA Inc. (In re Weirton Steel Corp.)

Ruling
Bankruptcy court lacked jurisdiction over cure payments under agreement from which debtor was released upon sale of the agreement and other assets.
Procedural posture

Plaintiff filed an adversary complaint against defendants, the entities that purchased substantially all the assets of a chapter 11 debtor and the successor to the entities, alleging that defendants failed to pay the remaining cure amount of an agreement that was allegedly assumed and assigned to one of the entities as part of its purchase of the debtor's assets. The successor filed a motion for judgment on the pleadings.

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opinion summary, case decided on July 06, 2007 , LexisNexis #0807-068

In re Barnes

Ruling
Bank's claim for breach of postpetition claim settlement agreement was contractual and was not related to debtor's bankruptcy.
Procedural posture

A bank filed a motion for permission to examine a debtor under Fed. R. Bankr. P. 2004.

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opinion summary, case decided on July 01, 2007 , LexisNexis #0807-069

Valley Historic Ltd. Pship v. Bank of New York

Ruling
Postconfirmation adversary proceeding brought by debtor against bank for breach of contract was not related to bankruptcy.
Procedural posture

Appellant debtor sought review of a decision of the District Court for the Eastern District of Virginia, which determined that a bankruptcy court lacked jurisdiction, pursuant to 28 U.S.C. § 1334(b), over the debtor's postconfirmation adversary proceeding against appellee bank for breach of contract and for tortious interference.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on May 17, 2007 , LexisNexis #0607-105

LaSalle Bank v. Great Am. Group Inc. (In re Goldblatts Bargain Stores Inc.)

Ruling
Proceeding for determination of amount, validity and priority of interests in liquidation of debtor's inventory was a core proceeding.
Procedural posture

A chapter 7 trustee filed an adversary proceeding against plaintiff bank and defendant commercial liquidator to determine the amount, validity, and priority of their interests in a guaranteed amount paid in connection with the liquidation of the chapter 7 debtor's inventory. The bank and the liquidator filed cross-appeals from the bankruptcy court's judgment. The bank filed a dismissal motion, attacking the bankruptcy court's jurisdiction.

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opinion summary, case decided on April 03, 2007 , LexisNexis #0507-070

CIT Communs. Fin. Corp. v. Level 3 Communs. LLC

Ruling
Lessor's breach of contract suit against purchaser of lessee debtor's lease was not related to bankruptcy.
Procedural posture

Plaintiff, a corporation that leased communications equipment to a company that later filed for bankruptcy, filed suit in state court against defendant, the purchaser of the lease, alleging breach of contract, unjust enrichment, and conversion. The purchaser removed the case to federal court and the leasing company filed a motion to remand the case to state court.

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opinion summary, case decided on March 30, 2007 , LexisNexis #0507-069