ILNews

7th Circuit finds remand to be unreviewable

Back to TopCommentsE-mailPrintBookmark and Share

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.”

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Good riddance to this dangerous activist judge

  2. What is the one thing the Hoosier legal status quo hates more than a whistleblower? A lawyer whistleblower taking on the system man to man. That must never be rewarded, must always, always, always be punished, lest the whole rotten tree be felled.

  3. I want to post this to keep this tread alive and hope more of David's former clients might come forward. In my case, this coward of a man represented me from June 2014 for a couple of months before I fired him. I knew something was wrong when he blatantly lied about what he had advised me in my contentious and unfortunate divorce trial. His impact on the proceedings cast a very long shadow and continues to impact me after a lengthy 19 month divorce. I would join a class action suit.

  4. The dispute in LB Indiana regarding lake front property rights is typical of most beach communities along our Great Lakes. Simply put, communication to non owners when visiting the lakefront would be beneficial. The Great Lakes are designated navigational waters (including shorelines). The high-water mark signifies the area one is able to navigate. This means you can walk, run, skip, etc. along the shores. You can't however loiter, camp, sunbath in front of someones property. Informational signs may be helpful to owners and visitors. Our Great Lakes are a treasure that should be enjoyed by all. PS We should all be concerned that the Long Beach, Indiana community is on septic systems.

  5. Dear Fan, let me help you correct the title to your post. "ACLU is [Left] most of the time" will render it accurate. Just google it if you doubt that I am, err, "right" about this: "By the mid-1930s, Roger Nash Baldwin had carved out a well-established reputation as America’s foremost civil libertarian. He was, at the same time, one of the nation’s leading figures in left-of-center circles. Founder and long time director of the American Civil Liberties Union, Baldwin was a firm Popular Fronter who believed that forces on the left side of the political spectrum should unite to ward off the threat posed by right-wing aggressors and to advance progressive causes. Baldwin’s expansive civil liberties perspective, coupled with his determined belief in the need for sweeping socioeconomic change, sometimes resulted in contradictory and controversial pronouncements. That made him something of a lightning rod for those who painted the ACLU with a red brush." http://www.harvardsquarelibrary.org/biographies/roger-baldwin-2/ "[George Soros underwrites the ACLU' which It supports open borders, has rushed to the defense of suspected terrorists and their abettors, and appointed former New Left terrorist Bernardine Dohrn to its Advisory Board." http://www.discoverthenetworks.org/viewSubCategory.asp?id=1237 "The creation of non-profit law firms ushered in an era of progressive public interest firms modeled after already established like the National Association for the Advancement of Colored People ("NAACP") and the American Civil Liberties Union ("ACLU") to advance progressive causes from the environmental protection to consumer advocacy." https://en.wikipedia.org/wiki/Cause_lawyering

ADVERTISEMENT