Capitol Hill Group v. DCA Capitol Hill LTAC, LLC (In re Specialty Hospital of Washington, LLC)
Capitol Hill Group v. DCA Capitol Hill LTAC, LLC (In re Specialty Hospital of Washington, LLC)
Opinion of the Court
MEMORANDUM AND ORDER
Pending before the Court is the plaintiff s Motion to Withdraw Reference (“PL’s Mot.”), ECF No. 1, in an action originally filed in the Superior Court for the District of Columbia and subsequently removed by the defendant to the United States Bankruptcy Court for the District of Columbia, pursuant to 28 U.S.C. § 1334(b).
Pursuant to 28 U.S.C. § 1334(a) and (b), “district courts have original jurisdiction over bankruptcy cases and related proceedings,” Wellness Int’l Network, Ltd. v. Sharif, — U.S. -, 135 S.Ct. 1932, 1939, 191 L.Ed.2d 911 (2015), but “may provide that any or all” of such cases “be referred to the bankruptcy judges for the district,” 28 U.S.C. § 157(a).
A ‘ “district court may withdraw’ a reference to the bankruptcy court ... ‘on timely motion of any party, for cause shown.’ ” Wellness Int’l, 135 S.Ct. at 1939 (quoting 28 U.S.C. § 157(d)). In determining whether to withdraw a reference, courts consider “whether the proceedings are core proceedings, ‘the efficient use of judicial resources, delay and costs to the parties, uniformity of bankruptcy administration, the prevention of forum shopping, and other related factors.’ ” In re Ellipso, Inc., 477 B.R. 278, 281 (D.D.C. 2012) (quoting Sec. Farms v. Int’l Bhd. of Teamsters, 124 F.3d 999, 1008 (9th Cir. 1997), and citing other cases). Pursuant to 28 U.S.C. § 157(b)(3) and District Court Local Bankruptcy Rule 5011 — 2(f), “[u]pon request of this Court, the bankruptcy judge shall determine ... whether or not any proceeding, as to which withdrawal of the reference is sought in whole or in part, is a core proceeding.” DCt.LBR 5011-2(f).
Here, the plaintiff asserts that the “instant proceeding was improperly referred to the Bankruptcy Court in the first instance under 28 U.S.C. § 157(a) and DCt. LBR 5011-1, because [the bankruptcy court] lacks subject matter jurisdiction under bankruptcy law over” the landlord-tenant claims at issue. Pl.’s Mot. at 5. In other words, the plaintiff contends that the case is not a case “under title 11 ... arising under title 11 or arising in or related to a case under title 11,” and is therefore not statutorily permitted to be referred to the bankruptcy court. 28 U.S.C. § 157(a). The defendants, on the other hand, assert that “this case is inextricably
The bankruptcy judge who has presided over the bankruptcy proceedings for the last two years, since April 2014, is fully familiar with the facts relating to the bankruptcy and, consequently, is best situated to evaluate in the first instance the propriety of the referral. See In re Millenium Seacarriers, Inc., 54 Fed.Appx. 333, 337 (2d Cir. 2002) (affirming “the District Court’s decision to permit the Bankruptcy Court to rule on the jurisdictional question in the first instance” because, “[wjithout findings by the Bankruptcy Court, we are unable to determine whether this adversary action constitutes ‘[a] proceeding[] arising under title 11 or arising in or related to a case under title 11,’ as required for the Bankruptcy Court to have jurisdiction over it’ (alterations in original)); see also 28 U.S.C. § 157(b)(3) (“The bankruptcy judge shall determine, on the judge’s own motion or on timely motion of a party, whether a proceeding is a core proceeding under this subsection or is a proceeding that is otherwise related to a case under Title 11.”); In re Millenium Seacarriers, Inc., 458 F.3d 92, 95 (2d Cir. 2006) (affirming “bankruptcy court’s initial assumption of jurisdiction over” adversary action). Accordingly, it is hereby
ORDERED that the plaintiff’s pending Motion to Withdraw Reference is referred to the bankruptcy court for a report and recommendation to be submitted for this Court’s review; and it is further
ORDERED that any party may file for consideration by the Court any written objections to the bankruptcy court’s proposed findings and recommendations within 14 days after the report and recommendation is issued. The objections shall specifically identify the portions of the proposed findings and recommendations to which objection is made and the basis for the objection. The filing of oppositions and replies shall be governed by Local Civil Rule 7(b) and (d).
SO ORDERED.
. The defendant’s Notice of Removal in the Bankruptcy Court also cites diversity jurisdiction, under 28 U.S.C. § 1332, as a ground for removal. The parties agree that this Court has subject matter jurisdiction on the basis of diversity, but disagree with respect to the bankruptcy court’s jurisdiction.
. Section 157(a) provides, in full: "Each district court may provide that any or all cases under Title 11 and any or all proceedings
Reference
- Full Case Name
- IN RE: SPECIALTY HOSPITAL OF WASHINGTON, LLC Capitol Hill Group v. DCA Capitol Hill LTAC, LLC
- Cited By
- 1 case
- Status
- Published