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Wells Fargo Bank, N.A., as Indenture Trustee for The Grand Pacific Business Loan Trust 2005-1 v. Transcontinental Realty Investors, Inc., and EQK Bridgeview Plaza, Inc., Adv. No. 10-0341 (01/24/2011) – Judge Thomas S. Utschig

Case Summary:
The defendant removed the proceeding from state court on the grounds that the action was related to a bankruptcy proceeding in Texas, and requested that the matter be transferred to the Texas bankruptcy court. The plaintiff objected to the transfer request and moved to remand the matter back to state court. The court first ruled that the matter had been properly removed to the bankruptcy court rather than the district court for the district in which the civil action is pending. The court also rejected the idea that the court to which the action is removed must in all cases act as a “gatekeeper,” and instead adopted the rationale that a court may, in proper cases, transfer a removed case to another forum and allow that court to consider whether the matter should be remanded. In this case, transfer was the appropriate course of action, and the Texas bankruptcy court could consider whether the case should be remanded to state court.

Statute/Rule References:
28 U.S.C. § 1412 -- Change of Venue
28 U.S.C. § 1452 -- Removal

Key Terms:
Removal
Transfer


Date: 
Monday, January 24, 2011