United States Second Circuit

In bankruptcy proceedings in which state-law claims were asserted, the district court's decision not to abstain from hearing the claims is reversed and the case remanded to state court, where: 1) mandatory abstention under 28 USC section 1334(c)(2) was appropriate under a four-factor test, given the complexity of the state law issues, the deference owed to state courts in deciding state law issues where possible, and the minimal effect of the state cases on the federal bankruptcy action and on the administration of the underlying estates; and 2) the argument that mandatory abstention did not apply because the cases could have been commenced in federal court had been waived, and was outside the scope of the mandate set forth in a previous opinion of the Second Circuit.

Appellate Information

• Decided 02/21/2012
• Published 02/21/2012

Judges

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• J. Gregory Taylor, James L. Bernard