AY McDonald Industries Inc. v. McDonald, No. 18-6017 (8th Cir. 2018)
Annotate this CaseThe Bankruptcy Appellate Panel vacated the bankruptcy court's decision concerning injunctive and declaratory relief, holding that the bankruptcy court lacked jurisdiction to entertain the claim at issue. In this case, the bankruptcy court held that a debt to AY was not dischargeable due to debtor's fraud and defalcation while he was a director at AY. The panel explained that the outcome of AY's claim for injunctive and declaratory relief could have no effect on debtor or the bankruptcy estate; the relief for the contract claim only affected AY; and the claim involved distributions from two spendthrift trusts, which were not property of the estate. Therefore, the contract claims for injunctive and declaratory relief were neither core proceedings nor non-core related to proceedings.
Court Description: Sanberg, Author, with Chief Judge Saladino and Nail, Bankruptcy Judges] Bankruptcy Appellate Panel. On appeal from denial of request for injunctive and declaratory relief, the bankruptcy court's decision is vacated because the contract claims for injunctive relief are neither core proceedings nor non-core related to proceedings and the bankruptcy court lacked jurisdiction to hear the claims for injunctive and declaratory relief. Home | Contact Us | Employment | Glossary of Legal Terms | Site Map | RSS Privacy Policy|BrowseAloud
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