In Re: Reliable Onshore Services Co. LLC
Filing
2
ORDER & REASONS granting 1 Motion to Withdraw Reference. Signed by Judge Martin L.C. Feldman on 3/6/2013. (caa, )
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
CIVIL ACTION
IN RE:
RELIABLE ONSHORE
SERVICES CO., LLC,
DEBTOR
NO. 13-332
SECTION F
ORDER AND REASONS
Before the Court is Trustee Aaron E. Caillouet’s motion to
withdraw the reference of an adversary proceeding. For the reasons
that follow, the motion is GRANTED.
Background
This matter involves an adversary proceeding filed in the
captioned Chapter 7 bankruptcy proceeding of Reliable Onshore
Services, Co., LLC, Bankruptcy Court Case Number 10-13693.
Aaron
E. Caillouet is the Trustee of the bankruptcy estate.
On
October
2,
2012,
the
Trustee
filed
this
adversary
proceeding against Louisiana Delta Farms, LLC and Louisiana Delta
Oil Company, LLC, in which the Trustee seeks to recover (i) under
Louisiana’s open account statute (La.R.S. § 9:2781) for amounts due
under unpaid invoices issued by Reliable Onshore to the defendants;
and (ii) for turnover of these amounts under 11 U.S.C. § 542(a).
The
adversary
proceeding
was
automatically
1
referred
to
the
bankruptcy court.
See Local Rule 83.4.1.1
In answering the
lawsuit, the defendants demand a jury trial.
The Trustee now requests that the Court withdraw the reference
from the bankruptcy court.
I.
The Trustee contends that the presence of the defendants’ jury
demand requires withdrawal of the reference of the adversary
proceeding.
The Court agrees.
28 U.S.C. § 157(d) governs mandatory and permissive reference
withdrawal. With respect to permissive withdrawal, “[t]he district
court may withdraw, in whole or in part, any case or proceeding
referred [to the bankruptcy court] on its own motion, or on timely
motion of any party, for cause shown.”
28 U.S.C. § 157(d).2
28
U.S.C. § 157(e) is triggered by jury demands:
If the right to a jury trial applies in a proceeding that
may be heard under this section by a bankruptcy judge,
the bankruptcy judge may conduct the jury trial if
1
Local Rule 83.4.1 of the Eastern District of Louisiana
provides that all cases under Title 11 and any case arising in or
related to cases under Title 11 are automatically “transferred by
the district court to the bankruptcy judges of this district.”
2
In deciding whether the withdraw the reference, the
Court typically considers the following factors: (a) whether the
proceedings involve core bankruptcy matters; (b) the interests of
judicial economy; (c) promoting uniformity in bankruptcy
administration; (d) reducing forum shopping and confusion; (e)
fostering economical use of the debtor’s and creditor’s resources;
(f) expediting the bankruptcy process; and (g) whether there has
been a jury demand. Sout Louisiana Ethanol v. Agrico Sales, Inc.
(In re So. La. Ethanol), No. 11-3059, 2012 WL 174646, at *5-6 (E.D.
La. Jan. 20, 2012).
2
specifically designated to exercise such jurisdiction by
the district court and with the express consent of all
the parties.
But as the local rules of the bankruptcy court make clear3 and
another Section of this Court observed, the bankruptcy court has
not been designated to conduct jury trials. In re Bacock & Wilcox,
Co., No. 01-1187, 2001 WL 1018366, at *6 (E.D. La. July 2,
2001)(“Bankruptcy courts in this district are not authorized to
conduct jury trials.
Generally, the inability of a bankruptcy
court to hold a jury trial in a related matter is a ground for a
district
court
court.”).
to
withdraw
the
reference
from
a
bankruptcy
Because the defendants in the adversary proceeding have
demanded a jury trial, and the bankruptcy court is not authorized
to conduct jury trials, the Trustee has established cause for
withdrawing the reference of the adversary proceeding from the
bankruptcy court.
Accordingly, the Trustee’s motion is GRANTED.
New Orleans, Louisiana, March 6, 2013
______________________________
MARTIN L. C. FELDMAN
UNITED STATES DISTRICT JUDGE
3
Local Bankruptcy Rule 9015-1 provides: “Jury trials are
not held in this court.”
3
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