Order Dismissing Motion To Withdraw Reference

On February 21, 2002, Plaintiff’s Complaint was filed against eight defendants, each of whom Plaintiff alleges is a member of the Debtor’s board of directors. In addition to the four Defendants who have brought the instant Motion, remaining defendants are: Thomas N. Tureen, Elizabeth Reuthe, Robert V. Shotwell, and Michael Liberty.  Defendant Elizabeth Reuthe has filed a letter stating that she has no objection to this motion.

Factors affecting a discretionary withdrawal pursuant to § 157(d) include: judicial economy; whether withdrawal would promote uniformity of bankruptcy administration; reduction of forum shopping and confusion; conservation of debtor
and creditor resources; expedition of the bankruptcy process; and whether a jury trial has been requested.  The bankruptcy court can exercise core jurisdiction over a proceeding when a party’s claims against another party are the equivalent of counterclaims against an entity that has filed a claim against the estate pursuant to Bankruptcy Code § 157(b)(2)(C).  Additionally, the bankruptcy court retains limited jurisdiction over claims that are sufficiently “related to” the bankruptcy case.

Conclusion:
The Court finds that Defendants have failed to carry their burden of  establishing cause for withdrawal of the reference at this time. Until the bankruptcy court determines the core/noncore nature of the claims, this Court cannot determine whether factors favoring withdrawal are sufficiently present to warrant such a course of action. Accordingly, it is ORDERED that Defendants’ Motion to Withdraw the Reference to the Bankruptcy Court (Docket No. 1B) be, and it
is, hereby, DISMISSED WITHOUT PREJUDICE. The Court FURTHER ORDERS that the case be REMANDED to the bankruptcy court for determination of whether any claims have preserved, noncore status and such other proceedings as the bankruptcy court shall find to be appropriate.

District Judge
Gene Carter

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