Trahant v. Mintz

District Court, E.D. Louisiana·Decided August 15, 2023·No. 2:23-cv-02053·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

RICHARD TRAHANT, et al. CIVIL ACTION

VERSUS NO. 23-2053

MARK A. MINTZ, et al. SECTION M (2)

ORDER & REASONS Before the Court is the motion of plaintiffs Richard C. Trahant and Amy O. Trahant for reconsideration or, alternatively, withdrawal of the Court’s referral of the captioned matter to the bankruptcy court.1 Defendants Mark A. Mintz, Jones Walker, LLP, and Donlin Recano & Company, Inc. (collectively, “Defendants”) respond in opposition,2 and plaintiffs reply in further support of their motion.3 Having considered the parties’ memoranda, the record, and the applicable law, the Court denies the motion because referral of the action was appropriate pursuant to the bankruptcy court’s gatekeeping function under the Barton doctrine. I. BACKGROUND Plaintiffs filed this suit in state court, asserting claims for abuse of process, intentional and negligent infliction of emotional distress, and loss of consortium, all in connection with the Defendants’ service of an order issued by the bankruptcy judge in the pending bankruptcy case filed by the Roman Catholic Church of the Archdiocese of New Orleans (the “Archdiocese”).4 Defendants removed the action to this Court based in part upon bankruptcy subject-matter jurisdiction under 28 U.S.C. § 1334(b), because, they say, plaintiffs’ “claims arise in a case under

1 R. Doc. 13. 2 R. Doc. 14. 3 R. Doc. 17. 4 R. Docs. 1-1; 1-4. title 11 and implicate core proceedings.”5 Thereafter, plaintiffs filed a motion to remand the case back to state court, contending that either mandatory or permissive abstention applied.6 The motion to remand remains pending. Defendants then filed a request for reference to the bankruptcy court under Local Rule 83.4.1 and the district’s general order of reference.7 The Court, in its July 14, 2023 Order (the “Order of Reference”), referred the action upon finding that plaintiffs’ claims

implicated the bankruptcy court’s gatekeeping function under the Barton doctrine.8 Plaintiffs’ motion for reconsideration or, alternatively, withdrawal of the Order of Reference followed.9 II. PENDING MOTION In their motion, plaintiffs argue that reconsideration or withdrawal of the Court’s Order of Reference is warranted because it was manifestly erroneous for the Court to refer their personal injury claims to the bankruptcy court.10 This is because, say plaintiffs, personal injury claims are categorically excluded from the provisions of the bankruptcy referral statute, 28 U.S.C. § 157.11 Plaintiffs also claim that the Court should reconsider the referral given that they were unable to contest the Defendants’ request for such relief before the referral occurred.12 Alternatively,

plaintiffs assert that the referral should be withdrawn because the matter is neither a core proceeding nor related to any bankruptcy proceeding.13 In addition, they contend that withdrawal is appropriate because “neither the plaintiffs nor the defendants are parties to the bankruptcy proceeding[,] ... [and] the interests of judicial economy, uniformity in bankruptcy administration,

5 R. Doc. 1 at 6. 6 R. Docs. 9; 9-1. 7 R. Doc. 11. 8 R. Doc. 12. 9 R. Doc. 13. 10 R. Doc. 13-1 at 8-9. 11 Id. 12 Id. at 6. 13 Id. at 9-10. the economical use of the parties’ resources, the effect of withdrawal on the goal of expediting the bankruptcy process, and forum shopping are not served by the referral to bankruptcy.”14 In opposition, Defendants argue that, because plaintiffs’ claims effectively challenge the Defendants’ interpretation or execution of an order of the bankruptcy judge, the matter necessarily “arises in” title 11 or at least relates to a proceeding under title 11 such that the Court has

bankruptcy subject-matter jurisdiction pursuant to 28 U.S.C. § 1334(b).15 Thus, say Defendants, the Court did not err in referring the action to the bankruptcy court as it amounts to a “collateral attack” upon an order or orders of that court.16 Moreover, Defendants contend that the “Court followed the proper procedure in referring the case” upon their ex parte request because such a request “need not be set for submission and adversarial briefing on the front end,” but may be challenged via a motion to withdraw the reference.17 But, in this regard, Defendants urge that withdrawal of the reference is not warranted here because (1) the matter is a “core proceeding with a special relationship” to the Archdiocese’s pending chapter 11 bankruptcy case; (2) policy considerations – particularly, the Barton doctrine – caution against withdrawal of the reference;

and (3) the referral statute does not preclude the Court from referring matters involving personal injury claims to the bankruptcy court for pretrial proceedings.18 In reply, plaintiffs reassert that their suit does not relate to a case under title 11, notwithstanding their concession that “factual disputes in this matter require reference to certain orders issued in the bankruptcy case.”19 Further, according to plaintiffs, the Barton doctrine does not apply where, as here, personal injury tort claims have been brought by and against non-parties

14 Id. 15 R. Doc. 14 at 1-6 & n.15. 16 Id. at 5-6. 17 Id. at 7-8. 18 Id. at 9-17. Defendants also dispute whether plaintiffs’ claims are properly characterized as “‘personal injury tort’ claims that would require a trial in the district court.” Id. at 16. 19 R. Doc. 17 at 1. to the purportedly related bankruptcy case.20 Finally, plaintiffs state that no other policy considerations justify the Court’s referral of the action to the bankruptcy court and, so, the referral should be withdrawn.21 III. LAW & ANALYSIS A. Whether Reversal of the Order of Reference is Warranted

1. The Standard Plaintiffs concede, and the Court agrees, that they seek reconsideration of an interlocutory order – specifically, the Court’s Order of Reference to the bankruptcy court.22 Reconsideration of interlocutory orders is governed by Rule 54(b) of the Federal Rules of Civil Procedure, which provides in pertinent part: [A]ny order or other decision, however designated, that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties does not end the action as to any of the claims or parties and may be revised at any time before the entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities. Under Rule 54(b), a district court “is free to reconsider and reverse its decision for any reason it deems sufficient, even in the absence of new evidence or an intervening change in or clarification of the substantive law.” Austin, 864 F.3d at 336 (quotation omitted). Unlike motions to alter or amend a judgment under Rule 59(e), “‘Rule 54(b)’s approach to the interlocutory presentation of new arguments as the case evolves can be more flexible, reflecting the inherent power of the rendering district court to afford such relief from interlocutory judgments as justice requires.’” Id.

Free access — add to your briefcase to read the full text and ask questions with AI

Trahant v. Mintz, (E.D. La. 2023).

Trahant v. Mintz (Trahant v. Mintz) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Barton v. Barbour
104 U.S. 126 (Supreme Court, 1881)
Adelson v. Smith (In Re Smith)
389 B.R. 902 (D. Nevada, 2008)
Elouise Cobell v. Sally Jewell
802 F.3d 12 (D.C. Circuit, 2015)
Randy Austin v. Kroger Texas, L.P.
864 F.3d 326 (Fifth Circuit, 2017)
NexPoint v. Highland Capital Management
48 F.4th 419 (Fifth Circuit, 2022)
Kozec v. Murphy (In re Murphy)
569 B.R. 402 (E.D. North Carolina, 2017)
Villegas v. Schmidt
788 F.3d 156 (Fifth Circuit, 2015)
Carroll v. Abide
788 F.3d 502 (Fifth Circuit, 2015)