Now Updating
In re Jerry Dewaye Gaddy

Summarizing by Matthew Hale

Moti Partners, LLC v. Desert Palace, Inc. (In re Caesars Entertainment Operating Co., Inc.)

Case Type:
Business
Case Status:
Dismissed
Citation:
BAP No. NV-17-1386-LBTa (9th Circuit, Aug 20,2018) Published
Tag(s):
Ruling:
BAP for 9th Cir. dismissed appeal for lack of subject matter jurisdiction based on 28 USC 1447(d)'s prohibition against appellate review of remand orders. Bankruptcy court's (D. Nev.) reasoning that state court action lacked sufficient nexus to bankruptcy case reorganized debtors following confirmed plan and thus lacked subject matter jurisdiction was not reviewable. Bankruptcy court did not abuse discretion in granting remand first and then denying motion to change venue. Basing ruling on equitable grounds under 28 USC 1452 did not nullify 28 USC 1447 prohibition against appellate review.
Procedural context:
Bankruptcy court granted plaintiffs' motion (1) remanding certain removed claims to Nevada state court and (2) denying as moot defendants' motions to transfer venue to the bankruptcy court for the ND of Illinois. Appellants appealed to BAP for 9th Cir.
Facts:
Various affiliates of Caesars Entertainment Operating Company entered into agreements with entities affiliated with Rowen Seibel ("Seibel") to construct and operate Gordon Ramsey restaurants in Caesars' casinos. The agreements contained "Unsuitable Person" clauses required under Nevada gaming regulations that rendered the agreements void if the contracted party was involved in a felony. Seibel was charged with feloniously violating federal tax laws. The Caesars' affiliates filed suit in Nevada against the Seibel entities to void the agreements and obtain declaratory relief. The Seibel entities removed the cases to the bankruptcy court for the District of Nevada, and sought to change venue to the ND. of Illinois, where Caesars' bankruptcy cases were still pending following confirmation of a chapter 11 plan.
Judge(s):
Lafferty, Brand, and Taylor

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