Robert Yaquinto, Jr., Chapter 7 Trustee, et al. v. Robert Earl, et al.

Summary

This report and recommendation addresses defendants’ motions to withdraw the bankruptcy reference and to transfer venue in an adversary proceeding arising from the BUCA C, LLC bankruptcy. The court concludes that the proceeding contains both core and noncore claims, but that core claims predominate, including fraudulent-transfer, preference, and claims-objection matters. It recommends that the district court deny withdrawal of the reference and deny transfer of venue as to the forum-selection clause.

Holdings

1. Withdrawal of the reference should be denied because core claims predominate, and the Bankruptcy Court can retain the proceeding for pretrial proceedings even where some claims are noncore or constitutionally subject to final adjudication by the District Court.
2. PHI, BUCA, LLC, and Earl waived any jury-trial right with respect to claims integral to the allowance, disallowance, or priority of their proofs of claim by submitting those proofs of claim to the Bankruptcy Court's equitable jurisdiction.
3. Nonclaimant defendants may retain applicable jury-trial rights, but that fact does not require withdrawal of the reference before the proceeding becomes trial-ready.
4. Transfer should be denied insofar as it is based solely on the forum-selection clause in the Services Agreement; the clause binds only certain parties and does not govern the entire twenty-two-count adversary proceeding.

Questions Presented

1. Whether the District Court should withdraw the reference for the mixture of core and noncore claims in the adversary proceeding.
2. Whether defendants' jury demand and refusal to consent to a jury trial before the Bankruptcy Court required withdrawal of the reference.
3. Whether the forum-selection clause in the Services Agreement warranted transfer of the adversary proceeding to the Middle District of Florida.
4. Whether the Bankruptcy Court could adjudicate or otherwise handle claims against defendants who filed proofs of claim, including claims intertwined with the claims-allowance process.
5. Whether the Bankruptcy Court could conduct pretrial proceedings and submit proposed findings on Stern-type and related-to claims against nonclaimant defendants.

Disposition

other