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In re Hernandez Gonzales

Citations: 73 B.R. 296; 1987 Bankr. LEXIS 1261Docket: Bankruptcy No. B-86-01856(ESL)

Court: District Court, D. Puerto Rico; March 17, 1987; Federal District Court

Narrative Opinion Summary

In this case, the applicant sought to remove a case from the Superior Court in San Juan to the bankruptcy court. The legal framework for such removals had shifted following the enactment of the Bankruptcy Amendments and Federal Judgeship Act of 1984, which replaced 28 U.S.C. 1478 with 28 U.S.C. 1452. Under the new statute, removals must be directed to the U.S. District Court, encompassing its bankruptcy unit. A resolution automatically delegates all bankruptcy-related cases in Puerto Rico to bankruptcy judges, who are authorized to handle core proceedings. However, the applicant's removal request was procedurally flawed as it was not filed as an adversary proceeding, a requirement under the applicable rules. Consequently, the court denied and dismissed the removal application, underscoring the necessity of adhering to procedural mandates for such actions to be valid. The ruling reaffirms the importance of compliance with procedural laws in bankruptcy matters.

Legal Issues Addressed

Change in Governing Law for Case Removal

Application: The procedural framework for removing cases to bankruptcy court changed due to the Bankruptcy Amendments and Federal Judgeship Act of 1984, which superseded 28 U.S.C. 1478 with 28 U.S.C. 1452.

Reasoning: The governing law for such removals changed from 28 U.S.C. 1478 to 28 U.S.C. 1452 due to the Bankruptcy Amendments and Federal Judgeship Act of 1984, rendering previous rules and sections ineffective.

Jurisdiction of Bankruptcy Judges

Application: Bankruptcy judges are empowered to hear core proceedings as part of the U.S. District Court's bankruptcy unit, following a resolution that refers all bankruptcy cases to them.

Reasoning: Bankruptcy judges, as part of the district court, can hear core proceedings that are referred to them.

Procedural Denial and Dismissal

Application: The court dismissed the application for removal due to non-compliance with procedural requirements, specifically the failure to file the removal as an adversary proceeding.

Reasoning: The application submitted by Hernandez Gonzalez did not meet this requirement, as it was presented as a motion rather than an adversary proceeding.

Removal of Cases to Bankruptcy Court

Application: The case addresses the procedural requirements for removing a case to the bankruptcy court under 28 U.S.C. 1452(a), specifically mandating that such removal be filed as an adversary proceeding.

Reasoning: For a removal to be valid, it must be filed as an adversary proceeding according to the relevant rules.