In Re: Louisiana Interests Inc

Filing 22

ORDER AND REASONS denying 1 Motion to Withdraw Reference; denying 8 Motion to Withdraw Reference. Signed by Judge Helen G. Berrigan on 10/2/2015. (Reference: Both Cases) [NEF: Judge Magner/Bankruptcy Clerk](kac)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA

IN RE:

CIVIL ACTION

LOUISIANA INTERESTS, INC.

NO. 15-2443 c/w 15-2444

SECTION: “C”
BANK NO.: 14-12772 c/w 14-12770
ADV. NO.: 15-01016 c/w 15-01015

ORDER
Before the Court are two motions for an Order Withdrawing the Reference pursuant to
Local District Court Rule 83.4.3 filed by First Bank and Trust (“defendant”). Rec. Docs. 1 and 8.
The motions are opposed by Louisiana Interests, Inc. d/b/a “Oz” and 800 Bourbon Street, LLC
(“debtors”), who are plaintiffs in the above-referenced adversary proceedings and debtors in
possession in the above-referenced bankruptcy proceedings. In the adversary proceedings,
debtors seek to disallow and expunge all claims of defendant on the grounds of negligence,
disallowance and setoff, and equitable subordination. See Rec. Docs. 1-1 and 8-1. The defendant
made a demand for trial by jury in each adversary proceeding. See Rec. Docs. 1 and 8. Pursuant
to Local Bankruptcy Rule 9015-1, bankruptcy courts in this district are not authorized to conduct
jury trials. Defendant therefore seeks withdraw of reference so the proceeding may take place
before a district court able to conduct a jury trial. See Rec. Docs. 1 and 8.
District courts have broad discretion when deciding whether or not to withdraw reference
for cause shown. In re Millennium Studios, Inc., 286 B.R. 300, 303 (D. Md. 2002). On

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September 15, 2015, the bankruptcy judge in the above-referenced adversary proceedings
granted debtors’ motions to strike defendant’s jury demands in the above-referenced adversary
proceedings. See Rec. Doc. 21-1. Because the granted motions to strike apparently address the
grounds on which defendant seeks withdraw of reference, the Court is of the opinion that
discretionary withdrawal of reference is not appropriate at this time.
Accordingly,
IT IS ORDERED that the Motions to Withdraw are DENIED WITHOUT PREJUDICE.
Rec. Docs. 1 and 8.
New Orleans, Louisiana this 2nd day of October, 2015.

___________________________________
HELEN GINGER BERRIGAN
UNITED STATES DISTRICT JUDGE

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