Narrative Opinion Summary
The case involves adversary proceeding No. 12-02424 ER, where defendants John C. Kirkland and Poshow Ann Kirkland, as Trustee of the Bright Conscience Trust, successfully moved to withdraw the reference from the bankruptcy court to the district court. The proceeding arose from allegations by Chapter 7 Trustee Jason M. Rund against EPD Investment Co. LLC, purportedly operated as a Ponzi scheme by Jerrold S. Pressman. Rund accused Kirkland, an attorney and investor in EPD, of concealing EPD’s financial misfortunes. Rund's six claims targeted the disallowance of claims and recovery of fraudulent transfers. The bankruptcy court's recommendation of judgment in Rund’s favor on certain claims was overturned by the district court. Kirkland maintained his right to a jury trial on fraudulent conveyance claims by not filing a proof of claim or consenting to a jury trial in bankruptcy court, necessitating the withdrawal of reference for jury trial purposes. The district court, emphasizing judicial economy and referencing Security Farms, granted the motion to withdraw, consolidating overlapping claims and factual issues. The parties were directed to develop a trial and pretrial schedule, with a scheduling conference set for January 14, 2019.
Legal Issues Addressed
Judicial Economy and Uniformity in Bankruptcy Administrationsubscribe to see similar legal issues
Application: The decision to withdraw the reference aimed to promote judicial economy and uniformity, referencing the precedent set in Security Farms.
Reasoning: This decision aims to promote judicial economy and uniformity in bankruptcy administration, referencing Security Farms, 124 F.3d at 1008.
Right to Jury Trial in Bankruptcy Proceedingssubscribe to see similar legal issues
Application: John C. Kirkland preserved his right to a jury trial on fraudulent conveyance claims by not filing a proof of claim or consenting to a jury trial in the bankruptcy court.
Reasoning: Kirkland asserted his right to a jury trial for the fraudulent conveyance claims, which he preserved by not filing a proof of claim or consenting to a jury trial in the bankruptcy court.
Withdrawal of Reference to Bankruptcy Courtsubscribe to see similar legal issues
Application: The court granted the motion to withdraw the reference of the adversary proceeding from the bankruptcy court to the district court due to the necessity of a jury trial and common factual issues.
Reasoning: The Court has decided to withdraw the entire adversary proceeding due to common factual issues and overlapping claims involving the BC Trust and John Kirkland.