The Colonial BancGroup, Inc. et al v. Branch Banking and Trust Company

Filing 5

ORDER that defendant Branch Banking and Trust Company's 1 MOTION for withdrawal of the reference is granted; that the clerks of the bankruptcy court and this court are DIRECTED to take all steps necessary to transfer to the USDC for the Middle District of Alabama the adversary proceeding initiated by Colonial BancGroup on April 8, 2011 (bankruptcy case no. 09-32303 (Chapter 11) and bankruptcy adversary proceeding no. 11-03026, M.D. Ala); that the clerk of this court shall set up the trans ferred case as a separate civil case, with a separate and new civil action number; that based on the potential conservation of resources and with the parties consent, this court has therefore, pursuant to 28 U.S.C. § 157(d), withdrawn the refere nce of the adversary proceeding from the bankruptcy court to this court for all purposes; that all other matters in bankruptcy case no. 09-32303-DHW (M.D. Ala.) shall remain under the jurisdiction of the bankruptcy court. Signed by Honorable Judge Myron H. Thompson on 9/29/2011. (cc, )

IN THE DISTRICT COURT OF THE UNITED STATES FOR THE
MIDDLE DISTRICT OF ALABAMA, NORTHERN DIVISION
IN RE:
COLONIAL BANCGROUP, INC.,
Debtor.
COLONIAL BANCGROUP, INC.,
Plaintiff,
v.
BRANCH BANKING AND TRUST
COMPANY,
Defendant.

)
)
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BANKRUPTCY CASE NO.
)
09-32303-DHW
)
)
) DISTRICT COURT MISC. NO.
)
2:11mc3580-MHT
)
(Bankr. Adv. Proc.
)
No. 11-03026)
)
(WO)
)
)
)
)
)
ORDER

This matter is before the court on a motion, filed by
defendant Branch Banking and Trust Company (“BB&T”), to
withdraw the bankruptcy reference and transfer adversary
proceeding number 11-03026 to the district court.

Based

on the representations that the parties made during a
telephone conference on September 28, 2011, and for the
reasons stated below, it is ORDERED that defendant Branch
Banking and Trust Company’s motion for withdrawal of the
reference (doc. no. 1) is granted.

The clerks of the bankruptcy court and this court are
DIRECTED to take all steps necessary to transfer to the
United States District Court for the Middle District of
Alabama the adversary proceeding initiated by Colonial
BancGroup on April 8, 2011 (bankruptcy case no. 09-32303
(Chapter 11) and bankruptcy adversary proceeding no. 1103026, M.D. Ala).

The clerk of this court shall set up

the transferred case as a separate civil case, with a
separate and new civil action number.
* * *
A

“district

court

may

withdraw

...

any

case

or

proceeding ... on timely motion of any party, for cause
shown.”

28 U.S.C. § 157(d).

Determining whether cause

exists involves analyzing a number of factors, including
whether withdrawal will prevent forum shopping, conserve
the parties’ resources, and facilitate the bankruptcy
process.

See In re Simmons, 200 F.3d 738, 741-42 (11th

Cir. 2000).

2

During a telephone conference held subsequent to
BB&T’s filing of the motion, Colonial BancGroup consented
to

withdrawal

of

the

reference.

Colonial

BancGroup

explained that it would be more efficient to withdraw the
reference because nearly identical issues to those raised
in the adversary proceeding are currently pending before
this court in a civil action between Colonial BancGroup
and

the

Federal

Deposit

Insurance

Corporation.

Withdrawal of the reference would therefore make the
parallel, overlapping litigation taking place in the
bankruptcy

court

unnecessary,

thereby

conserving

the

parties’ resources and streamlining the resolution of
this dispute.
Based on the potential conservation of resources and
with

the

parties

consent,

this

court

has

therefore,

pursuant to 28 U.S.C. § 157(d), withdrawn the reference
of the adversary proceeding from the bankruptcy court to
this

court

for

all

purposes.

3

All

other

matters

in

bankruptcy case no. 09-32303-DHW (M.D. Ala.) shall remain
under the jurisdiction of the bankruptcy court.
DONE, this 29th day of September, 2011.
/s/ Myron H. Thompson
UNITED STATES DISTRICT JUDGE