Section 2.11 Mandatory

• Library: Bankruptcy Practice (2007 Ed. + 2015 Cum Supp)

a. (§2.11) Mandatory

In what appears to be the most direct response to Northern Pipeline Construction Co. v. Marathon Pipe Line Co., 458 U.S. 50 (1982), the 1984 Amendments specify that the district court, upon “timely” motion, must abstain from hearing any proceeding “related to”—as opposed to “arising under” or “arising in”—a bankruptcy case if no independent federal jurisdiction exists, and “if an action is commenced, and can be timely adjudicated” in an appropriate state court. 28 U.S.C. § 1334(c)(2). Therefore, the court is without jurisdiction to decide the proceeding and must abstain if the court determines that:

· a timely motion has been made;

· the claim or cause of action is based on state law;

· the claim or cause of action is “related to” a bankruptcy case, but did not arise in or under the bankruptcy case;

· the only basis for original jurisdiction in federal district court is the bankruptcy filing;

· the action has already been commenced in state court; and

· the action can be timely adjudicated in the state court system.

In re...