- 28 U.S.C.
Official Comm. of Unsecured Creditors of Schlotzskys Inc. v. Grant Thornton LLP (In re Schlotzskys Inc.)
Aug
30
2006
Ruling
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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Court
:
- 28 U.S.C.
Loubser v. Pala (In re Loubser)
Jul
31
2006
Ruling
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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American Investors Life Ins. Co. v. Salinas (In re Salinas)
Jul
21
2006
Ruling
Bankruptcy court abstained from proceeding to determine if debtor was acting as agent of insurance company when recommending improper investments.
Procedural posture
Defendants, the personal representatives of estates of various deceased persons (estates), asked the court to abstain from exercising jurisdiction over a two-count complaint filed by plaintiff insurance company, which request was made pursuant to 28 U.S.C. § 1334(c)(1) or (2). The company later withdrew its first cause of action. At issue was whether abstention was proper.
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Williamson v. Cent. Miss. Med. Ctr.
Jul
20
2006
Ruling
Debtor's motion for abstention and remand of action back to state court was granted since state court could handle matter timely and would not impede estate's efficient administration.
Procedural posture
Plaintiff, debtor, sued defendants, a hospital, doctors, and corporations, in state court, asserting claims of medical negligence and product liability based upon injuries debtor allegedly sustained during a medical procedure. Debtor moved to abstain and remand the case to the Circuit Court of the First Judicial District of Hinds County, Mississippi. Defendants opposed the motion.
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Court
:
- 28 U.S.C.
Hoge v. Moore (In re Railworks Corp.)
Jul
13
2006
Ruling
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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Court
:
- 28 U.S.C.
Alderwoods Group Inc. v. Charter Funerals Inc. (In re Loewen Group Intl Inc. )
Jul
11
2006
Ruling
Court granted motion for abstention and referral to arbitration since proceeding would not affect administration of estate and was only remotely related to bankruptcy case.
Procedural posture
Plaintiff, the reorganized successor to the debtors, moved for abstention and referral to arbitration in an adversary action against defendant purchasers for breach of contract, indemnification, breach of the implied covenant of good faith and fair dealing, common law fraud, negligent misrepresentation, unjust enrichment, and promissory estoppel.
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Court
:
- 28 U.S.C.
Pleasure Cove Resort Asset Mgmt. Group LLC v. United States (In re Pleasure Cove Resort Asset Mgmt. Group LLC)
Jul
10
2006
Ruling
Court abstained from hearing proceeding since no significant bankruptcy issues were involved.
Procedural posture
Defendant U.S. Bureau of Reclamation filed a motion to dismiss plaintiff debtor's adversary proceeding, which sought to obtain resort property seized by the bureau or compensation for the seizure.
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Court
:
- 28 U.S.C.
Lowenbraun v. Canary (In re Lowenbraun)
Jul
06
2006
Ruling
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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Peoples Bank v. SAIIA Constr. LLC (In re B&M Props. LLC)
Jun
05
2006
Ruling
Court reversed bankruptcy court since mandatory abstention was required concerning issue of perfection of mechanic's lien pending in state court.
Procedural posture
Appellant creditor sought judicial review of a final order entered by the bankruptcy court. The issue was whether abstention doctrines applied to an involuntary bankruptcy case making it an error of law for the bankruptcy court to adjudicate the case before an active state case was resolved.
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Court
:
- 28 U.S.C.
Federalpha Steel LLC Creditors Trust v. Fed. Pipe & Steel Corp. (In re Federalpha Steel LLC)
May
31
2006
Ruling
Court ruled it lacked jurisdiction over state law claims that were not related to debtor's case and abstained on fraudulent transfer claim since such claim duplicated state court issue.
Procedural posture
Plaintiff, an unsecured creditors'trust created by a confirmed plan of a bankruptcy debtor which was a limited liability company, brought an adversary proceeding against defendants, a former member of the debtor and related entities and individuals, asserting fraudulent and preferential transfer claims and claims under state law. Defendants moved to dismiss and for abstention.
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Court
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