Plaintiff filed this adversary proceeding to recover money from the Debtors for alleged damages to collateral under state law causes of action. Plaintiff had received a judgment of strict foreclosure in state court and discovered damages to the property after retaking possession. Plaintiff named the Debtors’ insurer as a co-defendant. Debtors filed a Motion to Abstain and Remand or, in the Alternative, to Dismiss the Adversary Proceeding. Debtors’ insurer and the Plaintiff consented to this Court’s jurisdiction. Debtors’ Motion and arguments raised four issues: (1) whether the Court lacks subject matter jurisdiction under Rooker-Feldman; (2) whether the Court must abstain under mandatory abstention; (3) whether the court should abstain under permissive abstention; and (4) whether the Court should dismiss the adversary proceeding. The Court’s decision made no findings about the merits of the Plaintiff’s adversary action. The Court found that: (1) it does not lack subject matter jurisdiction over Plaintiff’s damage, negligence, conversion, and statutory theft claims; (2) it lacks subject matter jurisdiction over Plaintiff’s delinquent real estate tax claim; (3) mandatory abstention is not required; (4) permissive abstention is not appropriate; (5) Plaintiff’s complaint states claims sufficient to defeat a motion to dismiss except for its delinquent real estate tax claim. The Court dismissed the Plaintiff’s delinquent real estate tax claim.
28 U.S.C. § 1334
Fed. R. Bankr. P. 7012(b)(6), adopting Fed. R. Civ. P. 12(b)(6) -- Motion to Dismiss for Failure to State a Claim Upon Which Relief Can Be Granted
Subject Matter Jurisdiction