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Development Specialists Inc. v. Akin Gump Strauss Hauer & Feld LLP

Ruling
Reference of state law actions against firms for proceeds of unfinished business continued by debtor's former partners withdrawn for lack of jurisdiction.
Procedural posture

Plaintiff Chapter 11 plan administrator brought adversary proceedings against defendant law firms in the United States Bankruptcy Court for the Southern District of New York, alleging that defendants were liable to the debtor under the unfinished business doctrine. After the bankruptcy court denied defendants' motion to dismiss, defendants filed a motion in district court to withdraw the bankruptcy reference.

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Commercial opinion summary, case decided on November 02, 2011 , LexisNexis #1111-140

Picard v. JPMorgan Chase & Co.

Ruling
Common law claims against entities that benefitted from Madoff Ponzi scheme were not property of the estate but of defrauded creditors.
Procedural posture

Plaintiff liquidation trustee sued defendants, banks and investment funds, for claims that included aiding and abetting fraud, breach of fiduciary duty, conversion, and unjust enrichment. Defendants moved to dismiss for lack of standing.

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Commercial opinion summary, case decided on November 01, 2011 , LexisNexis #1111-083

Guippone v. BH S&B Holdings LLC

Ruling
Settlement of claims under WARN Act approved in best interests of debtors and estate.
Procedural posture

Plaintiff creditor brought a class action adversary proceeding against defendant debtors in the United States Bankruptcy Court for the Southern District of New York to recover pay and benefits. The district court withdrew the reference of the adversary proceeding. The parties and the Chapter 7 trustee moved for approval of a settlement.

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Commercial opinion summary, case decided on October 28, 2011 , LexisNexis #1111-103

Savoy Senior Housing Corp. v. TRBC Ministries LLC

Ruling
Dispute over senior housing development referred to bankruptcy court.
Procedural posture

Plaintiff housing developers sued defendant church company in state court, alleging several causes of action arising from their partnership to develop senior housing. After removing the action to federal district court, the company moved to dismiss the complaint for lack of jurisdiction or improper venue pursuant to Fed. R. Civ. p. 12(b)(1) and (3), or to refer the case to the bankruptcy court that had confirmed the partnership's chapter 11 plan.

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Commercial opinion summary, case decided on February 11, 2009 , LexisNexis #0409-104

M Fabrikant & Sons Inc. v. Longs Jewelers Ltd.

Ruling
Debtor's action for breach of prepetition contract was a non-core proceeding for which withdrawal of reference was appropriate.
Procedural posture

Plaintiff debtor voluntarily filed for chapter 11. Subsequently, it filed a complaint against defendant alleging it sold defendant $ 2,815,911 in diamonds and jewelry. Debtor sought $ 1,647,031 for goods sold to defendant prior to the petition date. Defendant filed its answer and jury demand. In its answer, defendant asserted defenses and counterclaimed. Before the court was defendant's motion to withdraw the reference from the bankruptcy court.

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Commercial opinion summary, case decided on June 26, 2008 , LexisNexis #0708-128

Live Nation Worldwide Inc. v. GTA Inc.

Ruling
Creditor could proceed against guarantor without first proceeding against debtor.
Procedural posture

A debtor executed a sublease whereby it agreed to sublease from plaintiff corporation. Concurrently with the sublease, defendant guarantor entered into a guaranty. The debtor filed a petition for relief under chapter 11. The corporation sued the guarantor to enforce the unconditional guaranty of payment. The corporation moved for summary judgment under Fed. R. Civ. P. 56.

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opinion summary, case decided on May 18, 2007 , LexisNexis #0607-107

Carter v. Safety-Kleen Corp.

Ruling
Employment discrimination claim accrued prior to plan confirmation was discharged.
Procedural posture

Plaintiff former employee brought an action against defendant former employer, alleging that the employer terminated the employee's employment on the basis of his race and color in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e-2000e-17. The employer moved for dismissal of the complaint for failure to state a claim.

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opinion summary, case decided on March 14, 2007 , LexisNexis #0607-137

Adams v. Marwil (In re Bayou Group LLC)

Ruling
As court appointed federal equity receiver could continue to manage debtor postpetition appointment of chapter 11 trustee was not necessary.
Procedural posture

Appellant, Acting U.S. Trustee, sought review of an order of the bankruptcy court denying the U.S. Trustee's motion for the appointment of a chapter 11 trustee for debtors, an affiliated group of limited liability companies that created and managed hedge funds.

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opinion summary, case decided on February 05, 2007 , LexisNexis #0307-013

VWE Group Inc. v. Amlicke (In re VWE Group Inc.)

Ruling
Motion for withdrawal of reference of non-core legal malpractice claim against debtor's prepetition counsel granted.
Procedural posture

Plaintiff, the official committee of unsecured creditors, filed an adversary proceeding against defendants, several former partners of a dissolved law firm that represented the debtor, and asserted malpractice claims based on their alleged failure to advise the Debtor to seek chapter 11 protection in a timely manner. Defendants filed a motion to withdraw reference and filed a jury demand.

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opinion summary, case decided on January 05, 2007 , LexisNexis #0207-105

West Vernon Energy Corp. v. Daniels

Ruling
Bankruptcy judge abused discretion in retaining removed state case after dismissal of underlying bankruptcy.
Procedural posture

Plaintiff fuel oil supplier brought an action for breach of contract, breach of guaranty, account stated, and quantum meruit against defendants, a customer and the customer's president as guarantor. The matter was referred to a bankruptcy court as an adversary proceeding. The president's bankruptcy case was dismissed. Defendants sought withdrawal of the reference of the adversary proceeding and remand of the action to a state court.

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opinion summary, case decided on June 19, 2006 , LexisNexis #0906-100