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§ 157

Nukote Intl Inc. v. Office Depot Inc.

Ruling
Non-core prepetition right of action arising under state law was appropriate for permissive withdrawal.
Procedural posture

Plaintiff manufacturer alleged that as a direct result of the breakdown of its business relationship with defendant retailer the manufacturer was forced to file for chapter 11 bankruptcy protection. The manufacturer filed an adversary proceeding in the bankruptcy court against the retailer and asserted, inter alia, breach of contract and fraudulent and negligent misrepresentation. The retailer moved to withdraw the reference.

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Commercial opinion summary, case decided on November 16, 2009 , LexisNexis #1209-063

Gulfmark Offshore Inc. v. Bender Shipbuilding & Repair Co.

Ruling
Action for breach of shipbuilding contract referred to bankruptcy court where debtor builder's involuntary case was pending.
Procedural posture

Plaintiff offshore company sued defendants, a shipbuilding company and its officers and directors, alleging breach of a contract to build vessels and related claims, including unjust enrichment and breach of fiduciary duty. The claims were stayed after commencement of a bankruptcy action for the shipbuilder. Pursuant to 28 U.S.C.S. § 157(a), the offshore company moved to refer the suit to the bankruptcy court. Defendants contested the motion.

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Commercial opinion summary, case decided on November 09, 2009 , LexisNexis #1209-025

Smith v. Regions Bank

Ruling
Motion to withdraw reference of core proceeding denied in interests of uniformity and judicial economy.
Procedural posture

Plaintiffs, debtors, filed a motion to reconsider the bankruptcy court's decision granting defendants, bank and the mortgage company, stay relief, and to impose an injunction or restraining order to prevent the bank and the mortgage company from selling the property. As such, the court treated the debtors' filing as a request to withdraw the reference to the bankruptcy court and as a request for injunctive relief.

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Consumer opinion summary, case decided on November 06, 2009 , LexisNexis #1209-026

Joe Gibsons Auto World Inc. v. Zurich Am. Ins. Co. (In re Joe Gibsons Auto World Inc.)

Ruling
Adversary proceeding for bad faith against debtor car dealer's insurer was a core proceeding.
Procedural posture

Plaintiff debtor filed an adversary action against defendant insurer alleging, among other things, breach and bad faith refusal to resolve a valid insurance claim. The insurer contended that the matters raised in this adversary proceeding were not core matters as defined in 28 U.S.C.S. § 157(b)(2).

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Commercial opinion summary, case decided on September 29, 2009 , LexisNexis #1009-131

Smith-Boughan Inc. v. Sun Trust Bank (In re GOE Lima LLC)

Ruling
Stay of core proceeding granted to allow arbitration of dispute pursuant to underlying contract.
Procedural posture

Creditor brought an adversary proceeding against defendant bankruptcy debtor alleging that the debtor breached a contract whereby the creditor provided mechanical services in connection with construction of an ethanol facility on the debtor's property. The debtor moved for a stay of the proceeding pending arbitration.

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Commercial opinion summary, case decided on September 01, 2009 , LexisNexis #1009-099

Comtel Telcom Assets LP v. Alvarez & Marsal Inc.

Ruling
Action by purchasers of debtor's assets against restructuring officers for mismanagement referred to bankruptcy court as a core proceeding.
Procedural posture

Plaintiff purchaser of a bankruptcy estate's assets sued defendant restructuring officers, alleging that they mismanaged and failed to preserve the debtor's assets during the period between the court's approval of the sale and the final closing. The officers moved to refer the case to the bankruptcy court.

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Commercial opinion summary, case decided on August 05, 2009 , LexisNexis #0909-059

JPMorgan Chase Bank v. Charter Communs. Operating LLC (In re Charter Communs.)

Ruling
Determination of whether debtor defaulted under credit agreement prior to petition date was a core proceeding.
Procedural posture

The agent for a senior credit facility brought an adversary proceeding against debtors seeking a determination that the debtors committed defaults under the debtors' credit agreement with the facility prior to filing their bankruptcy petitions. The debtors moved for a determination of whether the proceeding was a core proceeding.

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Commercial opinion summary, case decided on July 07, 2009 , LexisNexis #0809-058

In re Superior Offshore Intl Inc.

Ruling
Mandatory abstention not required with regard to claim that was subject of pending securities litigation.
Procedural posture

Claimant, an officer and director of debtor before it filed for bankruptcy, filed a proof of claim asserting a contingent, unliquidated claim for legal services (defense) of a securities lawsuit filed against him and against debtor (and others) relating to an initial public offering of stock, and a right of indemnity with respect to any judgment entered against him. The plan agent objected. Claimant responded by moving to withdraw the reference.

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Commercial opinion summary, case decided on July 06, 2009 , LexisNexis #0809-135

Doucet v. Drycock Coal Com. (In re Oakley)

Ruling
Bankruptcy court had jurisdiction over proceeding concerning stock that was property of the estate.
Procedural posture

Appellees, a bankruptcy trustee and a creditor, brought an adversary proceeding against pro se appellant bankruptcy debtor and others seeking a determination that certain stock was property of the debtor's estate in which the creditor claimed a security interest. The debtor appealed the order of the bankruptcy court for the Southern District of Ohio which denied the debtor's posttrial motion to dismiss for lack of jurisdiction and standing.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on June 18, 2009 , LexisNexis #0709-105

Travelers Indem. Co. v. Bailey

Ruling
Injunction barring direct actions against insurers of asbestos products manufacturer issued by bankruptcy court more than two decades ago was not subject to jurisdictional attack.
Procedural posture

The Bankruptcy Court for the Southern District of New York found that a 1986 injunction in a debtor's reorganization plan, which barred actions against liability insurers of the debtor, applied to lawsuits brought directly against the insurers by claimants. Upon the grant of a writ of certiorari, the insurers appealed the judgment of the U.S. Court of Appeals for the Second Circuit which held that the claimants' lawsuits were not subject to the bankruptcy injunction.

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Commercial opinion summary, case decided on June 18, 2009 , LexisNexis #0709-068