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Flintkote Co. v. Sullivan & Cromwell LLP

July 27, 2006

THE FLINTKOTE COMPANY, PLAINTIFF,
v.
SULLIVAN & CROMWELL LLP, DEFENDANT.



The opinion of the court was delivered by: Marilyn Hall Patel District Judge United States District Court

MEMORANDUM & ORDER

Re: Motion to Remand

For the Northern District of California Plaintiff The Flintkote Company ("Flintkote") filed this action against defendant Sullivan & Cromwell LLP ("S&C") in San Francisco Count y Superior Court on May 24, 2006. Flintkote alleges that S&C has improperly refused to deliver to Flintkote certain client files associated with S&C's previous representation of Flintkote. S&C timely removed to this court on June 2, 2006.

In support of removal, S&C argues that the question presented by Flintkote's complaint is a U "core" bankruptcy matter and therefore subject to exclusive federal jurisdiction under In re Gruntz, 202 F.3d 1074 (9th Cir. 2000) (en banc). In a separate order filed concurrently herewith in case number C 05-03051, the court rejects S&C's reading of Gruntz and concludes that state courts retain concurrent jurisdiction over core bankruptcy matters. For the reasons stated in that order, which are equally applicable here, Flintkote's motion to remand is GRANTED. A certified copy of this order shall be sent to the Superior Court for the County of San Francisco, and the clerk shall close the file.

IT IS SO ORDERED.

20060727

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