Bankruptcy Case No. 8:10-bk-12735-RK Adversary Proceeding No. 8:10-ap-01469-RK
The opinion of the court was delivered by: The Honorable Dolly M. Gee, United States District Judge
Present: The Honorable DOLLY M. GEE, UNITED STATES DISTRICT JUDGE
VALENCIA VALLERY NOT REPORTED
Deputy Clerk Court Reporter
Attorneys Present for Plaintiff(s) Attorneys Present for Defendant(s)
None Present None Present
Proceedings: IN CHAMBERS-ORDER GRANTING PLAINTIFFS' MOTION TO
WITHDRAW REFERENCE OF ADVERSARY PROCEEDING; ORDER TO SHOW CAUSE WHY THIS PROCEEDING SHOULD NOT BE REMANDED TO FRESNO COUNTY SUPERIOR COURT
On December 29, 2011, Plaintiffs filed an unopposed motion to withdraw the reference of this adversary proceeding to the Bankruptcy Court [Doc. # 1]. District courts may withdraw a reference to the Bankruptcy Court, "in whole or in part . . . , on its own motion or on timely motion of any party, for cause shown." 28 U.S.C. § 157(d). "In determining whether cause exists, a district court should consider 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 Ormsby, 591 F.3d 1199, 1207-08 (9th Cir. 2010) (quoting Sec. Farms v. Int'l Bhd. of Teamsters, 124 F.3d 999, 1008 (9th Cir. 1997)), such as whether non-core issues predominate. Security Farms, 124 F.3d at 1008.
Here, as discussed below, non-core issues predominate. Therefore, the Court finds that cause exists to withdraw the reference. Accordingly, Plaintiffs' motion to withdraw the reference is GRANTED.
Plaintiffs originally filed this proceeding against Debtor U.S. Dry Cleaning Services Corporation and other defendants in Fresno County Superior Court as case number 10CECG00557. On March 4, 2010, Debtor filed for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Central District of California in the above-captioned case number. On the same day, the Setal defendants removed the state court case to the United States Bankruptcy Court for the Eastern District of California pursuant to 28 U.S.C. § Team Equipment, Inc., et al. v. U.S. Dry Cleaning Services Corporation, et al.
1452(a). The Eastern District then transferred the case to the Bankruptcy Court for the Central District of California, where it was assigned the above-captioned adversary proceeding number.
At the time of removal from Fresno County Superior Court, the then-operative first amended complaint involved non-diverse parties and contained causes of action arising solely under state law. The currently operative second amended complaint and proposed third amended complaint similarly involve only state law causes of action and non-diverse parties. Thus, it appears that the only potential ...