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Showing 3 posts in Subject Matter Jurisdiction.

No “Related to” Jurisdiction Despite Stipulation and Bankruptcy Court Order Governing the Non-Debtor Parties’ Rights and Responsibilities

Seagate Tech. (US) Holdings, Inc. v. Global Kato HG, LLC (In re Solyndra, LLC), 2015 WL 6125246 (MFW) (Bankr. D. Del. Oct. 16, 2015).

In this Memorandum Opinion, Judge Mary Walrath of Delaware’s Bankruptcy Court granted a motion to dismiss an adversary proceeding between two non-debtor parties based on lack of subject matter jurisdiction, and also remanded similar litigation between the parties back to California state court.  Among other things, the Court concluded that an order issued by the Bankruptcy Court approving a stipulation did not confer subject matter jurisdiction over a proceeding between two non-debtors alleging state law claims, where a state court could easily interpret and give effect to it. Read More ›

Plaintiff Successfully Obtains Venue Transfer Given Change in Circumstances; District Court Sua Sponte Transfers Venue of Related Cases

Zazzali v. Wavetronix LLC (In re DBSI, Inc.), No. 12-cv-1211 (GMS), et al. (D. Del. Sept. 25, 2014)

This Memorandum Opinion issued by Judge Sleet of the Delaware District Court relates to multiple bankruptcy and securities proceedings pending in Delaware stemming from the alleged Ponzi scheme perpetrated by directors of the DBSI entities.  The bankruptcy actions (collectively, the “Bankruptcy Cases”) at issue are: (i) a declaratory action commenced by several parties, including Wavetronix LLC, (collectively, the “Moving Parties”) related to investments, promissory notes and membership interests in or made by a DBSI debtor; and (ii) an adversary proceeding commenced by the DBSI post-confirmation liquidating trustees against Wavetronix seeking to enforce certain promissory notes.  While the Moving Parties initially chose to file the declaratory action in Delaware, Wavetronix allegedly discovered several affirmative defenses implicating the federal RICO statute while preparing its answer to the liquidating trustees’ complaint.  The Moving Parties then sought to withdraw the reference and transfer both Bankruptcy Cases to the District of Idaho.  Ultimately, the District Court granted their requests.  In doing so, the Court also sua sponte transferred related actions commenced in the District Court by the liquidating trustee against hundreds of defendants, alleging violations of the Securities Exchange Act, breaches of contract, common law fraud, negligence, and breach of fiduciary duties (the “Securities Cases”). Read More ›

Pro Se Plaintiff's Adversary Complaint Dismissed For Lack of Subject Matter Jurisdiction

Carr v. JP Morgan Chase Bank, N.A. (In re New Century TRS Holdings, Inc.), Adv. No. 13-51058 (KJC), 2014 WL 392848 (Bankr. D. Del. Feb. 3, 2014)

In this Memorandum, Judge Carey dismissed a pro se plaintiff's adversary complaint because the plaintiff lacked standing to pursue certain claims, and the Court lacked subject matter jurisdiction to consider the remaining. Read More ›