- Case No. 12-11811
- Adv. No. 13-1049
Woodlands Development, LLC et al. v. Regions Bank, et al., Adv. No. 13-1049 ISSUE: Whether the bankruptcy court should abstain under 28 U.S.C. §1334(c)(1) or (2) from hearing a state court action removed to bankruptcy court by the debtor following several judgments entered by the state court.
RULING: After examining the statutory requirements as applied to the facts of the removed proceeding, the court concluded that mandatory abstention under 28 U.S.C. §1334(c)(2) was proper. The court also applied the factors for discretionary abstention under 28 U.S.C. §1334(c)(1) as set out in Browning v. Navarro, 743 F.2d 1069 (5th Cir. 1984) to the case facts and decided that it should permissively abstain from hearing the removed proceeding. Based upon these conclusions, the court remanded the proceeding to the state court under 28 U.S.C. §1452(b).