Buffets, Inc., et al. v. Leischow
- Citation:
- No. 12-2804
- Tag(s):
-
- Ruling:
- The Eighth Circuit Court of Appeals ruled that the District Court properly enjoyed jurisdiction to decide a state court matter removed after involuntary bankruptcy was filed against Debtor. Citing state law concerning the permissibility of indemnifying intentional torts, the Court of Appeals declined to consider whether the District Court properly enjoyed related-to bankruptcy jurisdiction, The Court of Appeals rather found diversity jurisdiction even though the parties were not completely diverse at the time of removal and the notice of removal did not expressly rely on diversity jurisdiction.
- Procedural context:
- After the state court action was commenced, creditors filed an involuntary bankruptcy petition against LGI, the debtor. The state court action was then removed to District Court, which denied a motion to remand or abstain. Case was then transferred to Bankruptcy Court, which then referred the case back to District Court. The District Court then granted motions for summary judgment by bank-defendants, and plaintiff appealed to the Court of Appeals.
- Facts:
- In a case primarily considering the merits of causes of action under the Minnesota Uniform Fiduciaries Act, the Court of Appeals considered whether the District Court properly enjoyed jurisdiction over a matter removed from state court. Plaintiff in the case was a restaurant chain which contracted with LGI Energy Solutions, a company that managed utility costs for large companies. LGI set up fiduciary deposit accounts to pay the utility costs on the chain's behalf with two banks. The banks failed to detect improper activity on the accounts by LGI, and restaurant chain brought suit against LGI and banks.
- Judge(s):
- Wollman, Colloton, Holmes
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