Knauer v. Kitchens (In re Eastern Livestock Co., LLC)

(Bankr. S.D. Ind. Mar. 18, 2016)

The bankruptcy court denies the defendant’s motion to dismiss based on Kentucky’s five-year statute of limitations for breach of an oral contract. The trustee brought the claim based on the defendant’s failure to properly care for the debtor’s cattle prior to the bankruptcy filing. The trustee argued that Indiana’s six-year statute applied. The court recognizes the circuit split on the issue of whether a bankruptcy court should apply the choice-of-law rules of the forum state or federal choice-of-law principles. The seventh circuit has not ruled on the issue. The bankruptcy court determines that, absent a significant federal policy or interest (which was absent in this case), a bankruptcy court should apply the choice-of-law rules of the state in which it states. Applying Indiana’s choice-of-law rules, the court determines that the six-year statute of limitations applies, and thus the motion to dismiss is denied. Opinion below.

Judge: Lorch

Attorneys for Trustee: Kroger, Gardis & Regas, LLP, Jay P. Kennedy, Amanda Dalton Stafford

Attorneys for Defendant: Bingham Greenbaum Doll LLP, Natalie Donahue Montell, Ivana B. Shallcross, April A. Wimberg

2016-03-18 – in re eastern livestock

Author: Matt Lindblom