Nikitris Hardy v. Joseph E. Bulgarella, Trustee

Summary

The United States District Court for the Northern District of Alabama denied Nikitris Hardy’s renewed petition for mandatory withdrawal of the automatic reference of her bankruptcy case. The court held that Hardy failed to show that resolving her bankruptcy case required substantial and material consideration of non-bankruptcy federal law under 28 U.S.C. § 157(d). The court also denied her motion for an extension of time as moot and directed the clerk to close the case.

Holdings

1. Mandatory withdrawal is required only when resolution of the proceeding requires substantial and material consideration of federal law outside the Bankruptcy Code; mere application of well-settled or hornbook nonbankruptcy law is insufficient.
2. Hardy failed to establish that resolution of her bankruptcy case required substantial and material consideration of non-Title 11 law, so mandatory withdrawal was denied.

Questions Presented

1. Whether mandatory withdrawal of the bankruptcy reference was required because resolution of Hardy's bankruptcy case allegedly required consideration of constitutional and other federal law outside Title 11.
2. Whether Hardy's conclusory assertions regarding due process, Article III adjudication, objections to proofs of claim, counterclaims, and statutory rights established that the case required substantial and material consideration of non-Bankruptcy Code federal law.

Disposition

denied