Mullen v. Chapel

Filing 5

ORDER denying the motion of defendant to withdraw bankruptcy reference 2 . Signed by Judge Frederick J Martone on 5/10/12. (TLJ)

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IN THE UNITED STATES DISTRICT COURT

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FOR THE DISTRICT OF ARIZONA

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Plaintiff,
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vs.
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Bethany Chapel, Trustee of the David J.)
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Glimcher 2008 Irrevocable Trust,
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Defendant.
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Brian J. Mullen, Trustee,

No. CV 12-00584-PHX-FJM
BK 12-15333-RJH
ORDER

We have before us the motion of defendant to withdraw bankruptcy reference (doc.
2) and plaintiff's response (doc. 3). Defendant did not file a reply.

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Before filing for bankruptcy, debtor David J. Glimcher created the David J. Glimcher

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2008 Irrevocable Trust and transferred over one million dollars in assets into it. The primary

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beneficiary is Glimcher's ex-wife, Vicky Roberts. Plaintiff, chapter 7 trustee of Glimcher's

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bankruptcy estate, filed this action to recover the trust's assets. He asserts claims for the

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avoidance of certain transfers pursuant to 11 U.S.C. § 548(a)(1)(A) and A.R.S. §§ 44-

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1004(A)(1) and 44-1005. Defendant seeks to withdraw the reference of this adversary

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proceeding, asserting a right to jury trial. Defendant objects to a jury trial in bankruptcy

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court, and contends it is more efficient for us to manage this case before trial.

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We "may withdraw, in whole or in part, any case or proceeding referred under this

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section, on [our] own motion or on timely motion of any party, for cause shown." 28 U.S.C.

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§ 157(d). Factors to consider in determining whether cause exists include "the efficient use

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of judicial resources, delay and costs to the parties, uniformity of bankruptcy administration,

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the prevention of forum shopping, and other related factors." Security Farms v. Int'l Bhd. of

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Teamsters, Chauffeurs, Warehousemen & Helpers, 124 F.3d 999, 1008 (9th Cir. 1997).

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This case should remain in bankruptcy court for pre-trial proceedings.

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bankruptcy court may "retain jurisdiction over the action until trial is actually ready." In re

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Healthcentral.com, 504 F.3d 775, 788 (9th Cir. 2007).

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conferences, and routine motions may be handled by a bankruptcy court without abridging

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a party's Seventh Amendment right to a jury trial. Id. at 787. In addition, the bankruptcy

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system promotes judicial economy and efficiency, goals that would be subverted if an action

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were required to be immediately transferred to district court because of a jury trial right. See

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id. at 787-88.

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The

Discovery matters, pre-trial

IT IS ORDERED DENYING the motion of defendant to withdraw bankruptcy
reference (doc. 2).
DATED this 10th day of May, 2012.

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