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Merit Transp. Co. v. Pilgrim's Pride Corp. (In re Merit Transp. Co.), Ch. 11, BK07-82148-TJM, A08-8032-TJM (Sept. 3, 2008)

The debtor filed this adversary proceeding to collect on account for services provided. The defendant demanded a jury trial and did not consent to the bankruptcy court’s jurisdiction. The lawsuit was a simple action to recover money owed to the debtor, so the defendant was entitled to a jury trial, and the lawsuit was filed in the bankruptcy court only because the plaintiff was a debtor in bankruptcy. Because the defendant had not subjected itself to the equitable jurisdiction of the bankruptcy court by filing a claim, the bankruptcy court recommended to the district court that it withdraw the reference of the case for all further proceedings.

Wednesday, September 3, 2008
Judge Timothy J. Mahoney (Retired)