IN RE: VITAMINS ONLINE, INC. V. HEARTWISE
- Summarized by Michael Myers , Ballard Spahr LLP
- 1 year 8 months ago
- Case Type:
- Business
- Case Status:
- Affirmed
- Citation:
- 22-60060 (9th Circuit, Jun 20,2024) Not Published
- Tag(s):
-
- Ruling:
- The Ninth Circuit Court of Appeals affirmed the Bankruptcy Appellate Panel and bankruptcy court decisions to permissively abstain from resolving its competing claims with its former counsel, Magleby Cataxinos & Greenwood P.C. (MCG) to a substantial money judgment Vitamins Online, Inc. (“VOL”) previously obtained against Heartwise, Inc.
- Procedural context:
- VOL contended that the bankruptcy court lacked jurisdiction over the dispute between it and MCG under 28 U.S.C. § 157 and § 1334(b).
- Facts:
- VOL and MCG were in a dispute about a substantial money judgment VOL previously obtained against Debtor. Both VOL and MCG filed a proof of claim for the full amount of the money judgment and an objection to each other’s claims. The bankruptcy court abstained from resolving the competing claims and VOL then contended that the bankruptcy court lacked jurisdiction. The Ninth Circuit held that the bankruptcy court had core jurisdiction over VOL’s and MCG’s competing claims to the money judgment, so it did not lack jurisdiction to issue an order permissively abstaining from that dispute.
- Judge(s):
- MURGUIA, Chief Judge, and CHRISTEN and VANDYKE
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