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§ 1334(c)(2)

Parmalat Capital Fin. Ltd. v. Bank of Am. Corp.

Ruling
District court erred in not exercising mandatory abstention to remand case with complex state law issues.
Procedural posture

Plaintiffs appealed from the judgments of the United States District Court for the Southern District of New York, dismissing their claims against the defendants after determining, pursuant to the mandate of the court, that mandatory abstention under 28 U.S.C.S. § 1334(c)(2) was not required in these bankruptcy-related cases.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on February 21, 2012 , LexisNexis #0312-070

Phoenix Energy Servs. V. Phoenix Envtl. LLC (In re Phoenix Envtl. LLC)

Ruling
Bankruptcy court abstained from hearing adversary proceeding that was related to bankruptcy but noncore as not arising under or in chapter 11 case.
Procedural posture

After creditor filed state law causes of action against defendant debtor, a writ of replevin was issued as to the debtor's property. Before the state judge ruled on a motion to dismiss the writ, the debtor filed its chapter petition and filed a notice of removal. The creditor filed a motion for remand or abstention.

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Commercial opinion summary, case decided on January 31, 2012 , LexisNexis #0312-064

Ghannam v. Standish (In re Protan)

Ruling
Mandatory abstention did not apply to property damage dispute between debtor and former spouse pending before family court.
Procedural posture

Trustee filed an adversary proceeding in the U. S. Bankruptcy Court for the Southern District of West Virginia, Charleston Division, against defendant creditors, seeking avoidance of a property transfer and repayment of a loan made by a chapter 7 debtor to one of the creditors. The bankruptcy court invalidated a prenuptial agreement and entered judgment in favor of the trustee. The creditors appealed.

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Consumer opinion summary, case decided on September 30, 2011 , LexisNexis #1011-135

Archangel Diamond Corp. v. OAO Lukoil (In re Archangel Diamond Corp.)

Ruling
Discretionary abstention exercised with regard to debtor's RICO action against Russian company.
Procedural posture

Debtor, a Canadian company, filed an action in the Denver District Court (Colorado) in 2001, alleging, inter alia, that defendant, a Russian company, breached a contract the parties entered for the purpose of mining diamonds. The case was moved to federal district court and referred to the bankruptcy court after the debtor was forced into bankruptcy, and the Russian company filed a motion for abstention and remand to the state court.

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Commercial opinion summary, case decided on October 28, 2010 , LexisNexis #1210-032

Wolfe v. Greentree Mortg. Corp.

Ruling
Mandatory abstention not applicable to core proceeding for invalidation of deed of trust.
Procedural posture

Plaintiff debtor filed a voluntary petition in bankruptcy. The debtor then sued defendants, corporations, and alleged unconscionable inducement of the loan, misconduct by a notary public, breach of contract, estoppel preventing foreclosure on the loan, illegal debt collection, and illegal return of payment. The action sought, inter alia, invalidation of the deed of trust and damages. The corporations removed the case. The debtor moved to remand.

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Consumer opinion summary, case decided on January 26, 2010 , LexisNexis #0210-131

In re Radetic

Ruling
Bankruptcy court voluntarily abstained from hearing contract dispute related to debtor's bankruptcy.
Procedural posture

Creditor filed a motion for relief from the automatic stay to proceed against the debtor in a state court action filed prepetition. The action arose from a failed real estate contract. The creditor, as listing agent, sought a commission from the debtor. The stay motion in effect called on the bankruptcy court to abstain from determining the breach of contract dispute.

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Consumer opinion summary, case decided on January 16, 2009 , LexisNexis #0309-024

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

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

Cargill Inc. v. Man Fin. Inc. (In re Refco Inc.)

Ruling
Sale of debtor's business and assignment of agreement were core proceedings.
Procedural posture

Defendant business purchaser appealed an order of the Bankruptcy Court for the District of Minnesota, which remanded plaintiff asset seller's removed action regarding an exclusive service contract between the seller and debtor to the state court.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on October 19, 2006 , LexisNexis #1106-070

Stoe v. Flaherty

Ruling
Bankruptcy court should have abstained from hearing claims under state wage payment and collection law.
Procedural posture

The Third Circuit reversed the instant court's previous opinion and order denying plaintiff's motion to abstain under 28 U.S.C. § 1334 and remanded the action for further consideration. The Third Circuit directed the instant court to consider whether, under section 1334(c)(2), the proceeding on plaintiff's state claim could be timely adjudicated in a state forum of appropriate jurisdiction.

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opinion summary, case decided on October 11, 2006 , LexisNexis #1106-105