Verano Land Group, LP v. VTLM Texas LP
2:13-cv-00939
| D. Nev. | Jan 30, 2014Background
- Verano Land Group, LP, a Nevada limited partnership, raised about $65 million from Nevada investors for a San Antonio, Texas real estate project.
- Plaintiff asserted exclusively state-law fiduciary, tort, contract, and related claims against VTLM Texas, LP and others, originally filed in Nevada state court on January 30, 2012.
- The Nevada state-court proceedings involved extensive litigation history, including decisions on proper forum, 211 docket filings, and 23 hearings over roughly sixteen months, with Nevada courts consistently finding Nevada proper for the action.
- VLTM Texas, LP filed a Chapter 11 bankruptcy petition in the Western District of Texas, which VLTM used to remove the case to federal court under related-to-bankruptcy jurisdiction.
- Plaintiff moved to remand on equitable grounds and also argued for mandatory abstention; the court granted remand on equitable remand grounds, not addressing mandatory abstention.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether equitable remand is appropriate. | Nevada courts’ expertise and forum familiarity support remand. | Remand would be inefficient and risk inconsistent results; bankruptcy proceedings necessitate federal handling. | Equitable remand granted. |
| Whether mandatory abstention applies under §1334(c)(2). | Mandatory abstention should apply due to state-law focus and Nevada domicile of most parties. | Abstention not necessary given related-to-bankruptcy context and forum considerations. | Not addressed; court remands on equitable grounds, making abstention moot. |
Key Cases Cited
- In re Fietz, 852 F.2d 455 (9th Cir. 1988) (defines related-to-bankruptcy jurisdiction standard)
- In re Hotel Mt. Lassen, Inc., 207 B.R. 935 (Bankr. E.D. Cal. 1997) (equitable-remand factors and forum considerations)
- Things Remembered, Inc. v. Petrarca, 116 S. Ct. 494 (1995) (equitable-remand framework and forum considerations)
- In re Marathon Home Loans, 96 B.R. 296 (Bankr. E.D. Cal. 1989) (equitable grounds for remand in bankruptcy-removal cases)