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Dudley v. BB&T (In re Dudley) (Case No. 03-02194; A.P. No. 04-00006) 11/08/2004

The Debtors and BB&T were engaged in state court litigation involving breach of contract and enforcement of a guaranty under business loans to the Debtors' LLC.  The Debtors sought to litigate in the bankruptcy court the exact same issues presented in the stayed state court action.  BB&T moved to dismiss the Debtors' adversary proceeding under Federal Rule of Civil Procedure 12(b) and (h).  The Court ruled in BB&T's favor and dismissed the adversary proceeding finding that the issues raised were non-core issues, and, in the best interest of justice and in the interest of comity with state courts and out of respect for state law, this Court will abstain from hearing this proceeding. The Court also modified the stay to allow the litigation to proceed in state court.

Date: 
Monday, November 8, 2004
Category: 
Abstention
Adversary Proceedings
Rule 12(b)(6)
Chapter: 
7