Wood v. Wood (Matter of Wood)
United States Court of Appeals for the Fifth Circuit
825 F.2d 90 (1987)
- Written by Jennifer Petracci , JD
Facts
James Wood (debtor) and Arthur Wood (plaintiff) were shareholders in a medical practice. James filed for Chapter 11 bankruptcy. Arthur claimed that James had issued additional stock in the medical practice to himself and received a disproportionate distribution from the practice, violating the agreement between the parties that they would be equal partners in the practice. Arthur brought his claim for declaratory relief and damages to the bankruptcy court that was hearing the bankruptcy case. James filed a motion to dismiss, claiming that the bankruptcy court did not have subject-matter jurisdiction to decide Arthur’s request for declaratory relief and damages. The bankruptcy court denied James’s motion, stating that the claim was a core bankruptcy proceeding. Upon appeal by James, the district court reversed and held that the bankruptcy court did not have subject-matter jurisdiction over Arthur’s claim because it was not a core proceeding and was not an otherwise-related, or non-core, proceeding. Arthur appealed.
Rule of Law
Issue
Holding and Reasoning (Wisdom, J.)
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