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§ 1412

In re Dunmore Homes Inc.

Ruling
Venue transferred from state where debtor was incorporated and domiciled to state where sources of funding were located in interests of judicial economy.
Procedural posture

The creditors filed a motion to transfer venue of the debtor's chapter 11 case, pursuant to 28 U.S.C. § 1412, to the Eastern District of California. The banks and debtor opposed the motion.

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Commercial opinion summary, case decided on January 14, 2008 , LexisNexis #0208-063

Orthodontic Ctrs. Of Tex. Inc. v. Corwin

Ruling
Action regarding business service agreement that was one of debtor's principal assets transferred to bankruptcy court in neighboring state where debtor's case was pending.
Procedural posture

Plaintiff consultant filed a suit in a Texas court against defendants, a dentist and his professional corporation, alleging that they breached the terms of the parties' business service agreement ("BSA"). The state court abated the action and, thereafter, the consultant filed a chapter 11 bankruptcy petition. It removed the suit to the court and moved to transfer the case to the District Court for the Eastern District of Louisiana.

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opinion summary, case decided on January 18, 2007 , LexisNexis #0207-051

Shaver v. Orthodontric Ctrs. Of Colo. Inc.

Ruling
Prepetition breach of contract action was not a core proceeding and not appropriate for venue transfer.
Procedural posture

Defendant dental providers filed bankruptcy and the automatic stay applied; however, the bankruptcy court granted partial relief from the stay, allowing certain courts to decide only the claims regarding whether the contracts between the parties were void ab initio, illegal, and/or unenforceable on their face under applicable state law. Defendants moved to transfer the case pursuant to 28 U.S.C. § 1412.

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opinion summary, case decided on January 04, 2007 , LexisNexis #0207-014

MacDonald v. Greenwood (In re MacDonald)

Ruling
Bankruptcy cases brought in improper venue must be either dismissed or transferred to a venue where the case could have been properly brought.
Procedural posture

Appeals were filed from three decisions of the bankruptcy court. Two of the bankruptcy court's judges held that improperly venued bankruptcy cases were to be transferred or dismissed, and the third judge held that an improperly venued bankruptcy case could be retained if the interests of justice and the convenience of the parties so required.

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opinion summary, case decided on October 31, 2006 , LexisNexis #0107-033

PRD LP v. Lopez (In re PRD LP)

Ruling
Bankruptcy court properly transferred venue from Illinois to Puerto Rico.
Procedural posture

Appellant limited partnership appealed from the bankruptcy court, and appellees, an estate, various individuals and contractors, opposed the appeal. The bankruptcy court had concluded that, pursuant to 28 U.S.C. § 1412, it was appropriate to transfer venue from the Northern District of Illinois to the District of Puerto Rico.

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opinion summary, case decided on August 22, 2006 , LexisNexis #0906-103

Baker v. Muscletech Research & Dev. Inc.

Ruling
Motion to transfer class action case to district court was granted since it was related to bankruptcy case pending in that district court.
Procedural posture

Plaintiff filed a class action complaint in state court, alleging causes of action in false advertising and breach of warranty relating to an ephedra-containing product manufactured by defendant. Defendant manufacturer removed the action, pursuant to 28 U.S.C. § 1452, moved to transfer the case to the district where multidistrict litigation relating to personal injury claims involving defendant's product was pending.

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opinion summary, case decided on June 09, 2006 , LexisNexis #0706-033