Mandatory abstention applied to remand defamation action to state court.
Procedural posture
In a state court, plaintiffs, an energy company and its president, filed defamation and business conspiracy claims against defendants, a political advocacy group and its president. The claims were removed pursuant to 28 U.S.C. §§ 1334(b) and 1452 on the ground that the claims were related to the advocacy group's bankruptcy proceeding. Plaintiffs filed a motion to abstain and remand. The advocacy group's president filed a motion to transfer.
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Massey Energy Co. v. West Virginia Consumers for Justice
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Bankruptcy court declined to abstain from hearing state law aspects of preference proceeding.
Procedural posture
Defendant accounting firm moved to abstain pursuant to 28 U.S.C. § 1334(c)(2) or in the alternative to dismiss for failure to state a claim pursuant to Fed. R. Civ. P. 12(b)(6) and Fed. R. Bankr. P. 7012 in a preference action brought by the creditors'committee for chapter 11 debtor, which asserted claims of negligence, breach of contract, aiding and abetting breaches of fiduciary duties, negligent misrepresentation, and gross negligence.
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Official Comm. of Unsecured Creditors of Schlotzskys Inc. v. Grant Thornton LLP (In re Schlotzskys Inc.)
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Motion to dismiss or for abstention was denied since claims constituted estate property.
Procedural posture
Pro se plaintiff bankruptcy debtor brought an adversary proceeding against defendants, alleging that defendants defamed the debtor and that defendants refused to comply with a state court order to hold the debtor harmless under mortgages. Defendants moved to dismiss the complaint for lack of jurisdiction or for mandatory abstention under 28 U.S.C. § 1334(c)(2).
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Loubser v. Pala (In re Loubser)
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Removed state law action by bond guarantors against debtor remanded to state court.
Procedural posture
Plaintiff guarantors of performance bonds issued to a bankruptcy debtor sued defendant representatives of the debtor and its parent company, also a debtor, alleging state law claims to recover amounts paid by the guarantors upon default under the bonds. The action was removed to bankruptcy court, the representatives moved to dismiss the claims, and the guarantors moved for abstention or remand.
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Hoge v. Moore (In re Railworks Corp.)
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Bankruptcy court properly refused to abstain from hearing debtor's state slander action against attorneys hired to investigate debtor's alleged fraudulent transfers.
Procedural posture
Appellant wife sued appellees, an attorney and a law firm, alleging claims for libel, slander, abuse of process, wrongful use of civil proceedings, and outrageous conduct. The bankruptcy court denied the wife's motion to remand to state court and found that appellees were entitled to absolute immunity or summary judgment. The District Court for the Western District of Kentucky affirmed. The wife appealed.
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Lowenbraun v. Canary (In re Lowenbraun)
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Court
:
Judge or Jurisdiction information not available
opinion summary, case decided on
July 06, 2006
, LexisNexis #0906-070
Motion for abstention was denied since case could not be timely adjudicated in state court.
Procedural posture
Plaintiff bankruptcy trustee sued defendants, a former employee of bankruptcy debtors and a limited liability company, alleging business tort claims in state court. Defendants removed the action to the bankruptcy court which was adjudicating the debtors'bankruptcy, and the trustee moved for the bankruptcy court to abstain from hearing the matter.
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Rydell v. Astorino (In re Baron Capital Props. L.P.)
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Court abstained from adjucating the matter and granted motion to remand the case to state court since the case involved intrastate commerce matters only.
Procedural posture
Plaintiff filed an action in state court against defendant company that was a "doing business as" of the debtor. The debtor removed the lawsuit to the court. The court granted plaintiff's emergency motion for a remand, and then granted the debtor's motion for reconsideration. Upon reconsideration, the court issued findings of fact and conclusions of law.
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Culley Septic Serv. V. Culley Excavation & Septic Serv. (In re Culley)
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Remand was proper since elements of mandatory abstention were met.
Procedural posture
Plaintiff family members and their chapter 11 debtor ranch removed an action pending before the Fifth Judicial District Court, State of New Mexico, County of Dona Ana, against defendant alleged water rights converters and defendant state engineer. The alleged converters filed a motion to remand under 28 U.S.C. § 1452(b).
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Gregory v. Lyman (In re Gregory Rock House Ranch LLC)
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