Rochelle's Daily Wire

ABI Exclusive

Bankruptcy Court Can’t Have Exclusive Jurisdiction over Disputes from a Sale Order

A district judge in Indiana says that a bankruptcy court cannot have exclusive jurisdiction over disputes in the future except in the circumstances specified in Section 1334.

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Opinion Link

Case Details

Case Citation

Buy Direct LLC v. DirectBuy Inc., 15-344 (N.D. Ind. Sept. 6, 2024)

Case Name

Buy Direct LLC v. DirectBuy Inc.

Case Type

Na
Bankruptcy Tags

Comments

Respectfully, this is a nonsensical decision. Sale of estate estates is undeniably a core proceeding over which the Bankruptcy Court can and should exercise jurisdiction. The issue in the litigation was, in effect, a breach under the Sale Order, which presumably approved and authorized the debtor to enter into the PSA that was the basis of the lawsuit. So how does the Court that enters an order not have exclusive jurisdiction to enforce its own order? It was almost as if the District Court was sua sponte withdrawing the reference of that part of the sale proceeding. But what do i know (that was intended as a rhetorical question...)?