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7th Circuit finds remand to be unreviewable

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The 7th Circuit Court of Appeals looked at the issues of removal and remand in the context of bankruptcy in a case July 21 and found the bankruptcy court’s decision to remand a case to state court is unreviewable.  

In the 19-page decision authored by Judge Richard Posner, the federal appellate court looked at Judicial Code (Title 28) sections 1446(a) and 1447, and federal cases, which included Carlsbad Technology Inc. v. HIF Bio Inc., 129 S. Ct. 1862 (2009), to determine whether a company could appeal a bankruptcy judge’s order that an action originally filed in state court and removed to bankruptcy court should be sent back to the state court.

Alan Brill owned several radio stations that eventually went into Chapter 11 bankruptcy. The successful bidder on those at auction was Regent Communications, now known as Townsquare Media, who had at one point discussed with Brill the possibility of buying the media companies prior to bankruptcy. Brill filed suit in state court claiming the creditors of the debtors and some of the debtors’ lawyers and other professional advisors misused confidential information and encouraged Regent to violate two confidentiality agreements it had previously made with Brill. All his claims were based on Indiana law.

The case was moved to bankruptcy court after pre-bankruptcy creditors named as defendants asked the bankruptcy judge to take the case to enforce compliance with a previous order. The bankruptcy court took the case, but Brill later amended the case to only include Regent as a defendant in the alleged violations of the confidentiality agreement claims.

The bankruptcy judge ruled the amended complaint was unrelated to the bankruptcy, so the court had no jurisdiction over it. The judge ordered the suit remanded to the state court, which Regent appealed. The District Court affirmed, saying once the bankruptcy court found it had no jurisdiction, no action could be taken but to remand the case.

“The word ‘jurisdiction’ is a chameleon, judges do not always use it with precision, and the distinction between relinquishing and disavowing jurisdiction is a fine one. Had Regent argued supplemental jurisdiction to the bankruptcy judge, we might interpret what the judge did as relinquishment rather than disavowal,” wrote Judge Posner in Townsquare Media Inc., f/k/a Regent Communications Inc. v. Alan R. Brill, et al., Nos. 10-3017, 10-3018.

“But as no one mentioned supplemental jurisdiction, it hardly seems likely that the judge, in holding that he lacked jurisdiction, meant that he had jurisdiction but was relinquishing it. Such a characterization of his ruling would not be ‘colorable.’ So the remand was indeed unreviewable, and Regent’s appeal must therefore be – we conclude at long last – dismissed.”

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  1. YES I WENT THROUGH THIS BEFORE IN A DIFFERENT SITUATION WITH MY YOUNGEST SON PEOPLE NEED TO LEAVE US ALONE WITH DCS IF WE ARE NOT HURTING OR NEGLECT OUR CHILDREN WHY ARE THEY EVEN CALLED OUT AND THE PEOPLE MAKING FALSE REPORTS NEED TO GO TO JAIL AND HAVE A CLASS D FELONY ON THERE RECORD TO SEE HOW IT FEELS. I WENT THREW ALOT WHEN HE WAS TAKEN WHAT ELSE DOES THESE SCHOOL WANT ME TO SERVE 25 YEARS TO LIFE ON LIES THERE TELLING OR EVEN LE SAME THING LIED TO THE COUNTY PROSECUTOR JUST SO I WOULD GET ARRESTED AND GET TIME HE THOUGHT AND IT TURNED OUT I DID WHAT I HAD TO DO NOT PROUD OF WHAT HAPPEN AND SHOULD KNOW ABOUT SEEKING MEDICAL ATTENTION FOR MY CHILD I AM DISABLED AND SICK OF GETTING TREATED BADLY HOW WOULD THEY LIKE IT IF I CALLED APS ON THEM FOR A CHANGE THEN THEY CAN COME AND ARREST THEM RIGHT OUT OF THE SCHOOL. NOW WE ARE HOMELESS AND THE CHILDREN ARE STAYING WITH A RELATIVE AND GUARDIAN AND THE SCHOOL WON'T LET THEM GO TO SCHOOL THERE BUT WANT THEM TO GO TO SCHOOL WHERE BULLYING IS ALLOWED REAL SMART THINKING ON A SCHOOL STAFF.

  2. Family court judges never fail to surprise me with their irrational thinking. First of all any man who abuses his wife is not fit to be a parent. A man who can't control his anger should not be allowed around his child unsupervised period. Just because he's never been convicted of abusing his child doesn't mean he won't and maybe he hasn't but a man that has such poor judgement and control is not fit to parent without oversight - only a moron would think otherwise. Secondly, why should the mother have to pay? He's the one who made the poor decisions to abuse and he should be the one to pay the price - monetarily and otherwise. Yes it's sad that the little girl may be deprived of her father, but really what kind of father is he - the one that abuses her mother the one that can't even step up and do what's necessary on his own instead the abused mother is to pay for him???? What is this Judge thinking? Another example of how this world rewards bad behavior and punishes those who do right. Way to go Judge - NOT.

  3. Right on. Legalize it. We can take billions away from the drug cartels and help reduce violence in central America and more unwanted illegal immigration all in one fell swoop. cut taxes on the savings from needless incarcerations. On and stop eroding our fourth amendment freedom or whatever's left of it.

  4. "...a switch from crop production to hog production "does not constitute a significant change."??? REALLY?!?! Any judge that cannot see a significant difference between a plant and an animal needs to find another line of work.

  5. Why do so many lawyers get away with lying in court, Jamie Yoak?

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