United States Second Circuit

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Parmalat Capital Fin. Ltd. v. Bank of Am. Corp., 09-4302

In an action against an accounting firm for professional malpractice and fraud, which was removed from Illinois state court, the district court's dismissal of the action based on pending bankruptcy proceedings is affirmed in part where: 1) an 11 U.S.C. section 304 proceeding is a case for the purposes of subject matter jurisdiction under 28 U.S.C. section 1334(b); and 2) so long as the estate at issue in a section 304 proceeding, wherever located, may conceivably be affected by the state law actions, those state law actions are "related to" the section 304 case. However, the judgment is vacated in part where the district court needed to consider whether abstention was mandatory.

Appellate Information

  • Decided 01/18/2011
  • Published 01/18/2011

Judges

  • Richard C. Wesley

Court

  • United States Second Circuit

Counsel

  • For Appellant:
  • Kathleen M. Sullivan, J. Gregory Taylor