Roach v. Barcus (In re Bolan)

(Bankr. N.D. Ind. Dec. 16, 2014)

The bankruptcy court denies the defendants’ motion to dismiss the adversary proceeding. The trustee had sued the defendants in state court seeking to avoid certain stock transactions with the debtor. The trustee then removed the action to the bankruptcy court, and the defendants moved to dismiss based on lack of subject matter jurisdiction and mandatory abstention. The court has jurisdiction because the determination of the trustee’s claims has a significant impact on the debtor’s estate. Further, the court is not required to abstain, because abstention requires an action to be pending in another court. Because the case was removed to the bankruptcy court, there was no longer an action pending in state court. Opinion below.

2014-12-16 – roach v barcus