- 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
:
- 28 U.S.C.
Rydell v. Astorino (In re Baron Capital Props. L.P.)
May
05
2006
Ruling
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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Court
:
- 28 U.S.C.
Nickless v. Aaronson (In re Katz)
May
01
2006
Ruling
Court abstained on ruling on trustee's efforts to obtain a winding up and accounting of a partnership in favor of a state court action.
Procedural posture
Plaintiff bankruptcy trustee brought an adversary proceeding against defendant partners in a partnership in which the debtor was also a partner, seeking a wind up of the partnership and a sale of partnership assets. The partners moved to dismiss the complaint for lack of subject matter jurisdiction.
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Court
:
- 28 U.S.C.
Culley Septic Serv. V. Culley Excavation & Septic Serv. (In re Culley)
Mar
31
2006
Ruling
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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Court
:
- 28 U.S.C.
Gregory v. Lyman (In re Gregory Rock House Ranch LLC)
Mar
15
2006
Ruling
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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Court
:
- 28 U.S.C.
In re Thermoview Indus.
Mar
14
2006
Ruling
Court abstained from hearing the proceeding since state law issues predominated over bankruptcy issues and the administration of the estate was nearly complete.
Procedural posture
Plaintiff, a guarantor on a loan made to defendant debtor, filed suit in state court seeking reimbursement and/or indemnity from the debtor. The debtor removed the action to the bankruptcy court. The guarantor moved for remand to state court.
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Court
:
- 28 U.S.C.
D.E. Frey Group Inc. v. FAS Holdings Inc. (In re D.E. Frey Group Inc.)
Feb
01
2006
Ruling
Claimant's motion for dismissal or abstension was denied since the claimant's filing of a proof of claim and the obvious efficiencies of having the court adjudicate the debtor's related counterclaims weighed heavily against the court exercising its discre
Procedural posture
Plaintiff debtor filed an adversary proceeding against defendant claimant, a party which filed a proof of claim. Debtor asserted eight claims for relief — breach of agreement, breach of implied covenants, interference with prospective economic advantage, fraud, breach of fiduciary duty, conversion, turnover, and determination of validity, priority and extent of liens. Pending was the claimant's motion to dismiss or abstain.
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Court
:
- 28 U.S.C.
Osting v. Blockberger (In re Osting)
Nov
07
2005
Ruling
Court abstained from hearing the debtor's transfer avoidance action since the action was directed at undoing the domestic relations court's decision for the ex-spouse.
Procedural posture
Plaintiff debtor commenced an adversary proceeding seeking to avoid, as a preferential transfer under 11 U.S.C. § 547 and as a fraudulent transfer under 11 U.S.C. § 548, a judgment lien and subsequent transfer of property accomplished for the benefit of defendants, his ex-spouse, et al. The cause was before the court on the motion of his ex-spouse to dismiss the complaint.
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Court
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