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Mv Transportation, Inc., A California v. Ameritran Service Corporation

UNITED STATES DISTRICT COURT 8 EASTERN DISTRICT OF CALIFORNIA


February 28, 2011

MV TRANSPORTATION, INC., A CALIFORNIA CORPORATION, PLAINTIFF,
v.
AMERITRAN SERVICE CORPORATION, A FLORIDA CORPORATION, DBA TRANSIT RESOURCE CENTER; TRANSIT RESOURCE
CENTER OF NEVADA, INC., A NEVADA CORPORATION; AND BLUEGO TRANSIT ) DEPT: COURTROOM 6MANAGEMENT, INC., A NEVADACORPORATION, DEFENDANTS.

The opinion of the court was delivered by: John A. Mendez Honorable John A. Mendez

ORDER ON PLAINTIFF'S MOTION TO REMAND AND DEFENDANTS' MOTION TO TRANSFER VENUE

February 23, 2011 Time: 9:30 a.m

The motion of plaintiff MV TRANSPORTATION, INC. ("Plaintiff") requesting remand of Plaintiff's complaint to the Superior Court of California in and for the County of Solano, and the related motion of defendants AMERITRAN SERVICE CORPORATION dba TRANSIT RESOURCE CENTER, TRANSIT RESOURCE CENTER OF NEVADA, INC., and BLUEGO TRANSIT MANAGEMENT, INC. (collectively, "Defendants") to transfer venue of Plaintiff's complaint to the United States Bankruptcy Court for the District of Nevada both having been duly noticed and served on all interested parties, came on regularly for hearing before this Court, the Honorable John A. Mendez, presiding, at 9:30 a.m., on February 23, 2011.

[Proposed] Order on Plaintiff's Motion for {1290697.DOCX;} 1 Remand and Defendants' Motion to Transfer ted with pdfFactory trial version www.pdffactory.com Venue

1 Zachary J. Wadle appeared on behalf of Plaintiff. Cecilia Lee appeared on 2 behalf of Defendants.

3 All arguments, papers, and evidence considered and good cause 4 appearing, Plaintiff's Motion to Remand is hereby GRANTED for all of the reasons 5 stated by the Court on the record at the hearing, including the Court's specific 6 findings that: (1) Plaintiff's complaint against Defendants is based upon state law 7 and does not in any way involve federal law; (2) there is no "related-to" 8 bankruptcy court jurisdiction over Plaintiff's complaint under 28 U.S.C. § 1334(b) in 9 connection with the bankruptcy of third-party debtor South Tahoe Area Transit Authority ("STATA") filed in the District of Nevada (Case No. BK-N-10-53666-GWZ); (3) Defendants' claims of indemnity rights against third-party debtor STATA arising out of Plaintiff's complaint allegations are speculative, contingent, and uncertain, and do not create "related to" jurisdiction under 28 U.S.C. § 1334(b); 4) defendant Ameritran Service Corporation does not have any right to contractual indemnification from third-party debtor STATA; and (5) even if Defendants could demonstrate a prima facie case of "related to" bankruptcy court jurisdiction over Plaintiff's complaint, equitable remand under 28 U.S.C. § 1452(b) is appropriate given the facts and circumstances of this case. Plaintiff's complaint is hereby remanded to the Superior Court of California, in and for the County of Solano, for all further proceedings.

Plaintiff's accompanying request for an award of attorneys' fees and costs pursuant to 28 U.S.C. § 1447(c) is hereby DENIED.

In light of the Court's decision on Plaintiff's Motion to Remand, Defendants' Motion to Transfer Venue to the United States Bankruptcy Court for the District of Nevada is hereby DENIED as moot.

IT IS SO ORDERED.

[Proposed] Order on Plaintiff's Motion for {1290697.DOCX;} 2 Remand and Defendants' Motion to Transfer ted with pdfFactory trial version www.pdffactory.com Venue

20110228

© 1992-2011 VersusLaw Inc.



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