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Alderwoods Group, Inc., Et Alv.Reyvis Garcia, Et Al

CourtUnited States Court of Appeals for the Eleventh Circuit
Docket No.10-14726
DecidedMay 30, 2012
JudgesUnited States Court of Appeals for the Eleventh Circuit
Tags
CivilCivil ProcedureBusiness LawGovernment LawFederal JurisdictionSubject Matter JurisdictionDue ProcessStatutory InterpretationDeclaratory JudgmentVacaturRemand
Case Summary

Alderwoods and related cemetery companies faced tort claims from families who alleged that poor records made graves at a Miami cemetery difficult to locate. The companies had reorganized under Chapter 11 in Delaware, and the Delaware bankruptcy court's confirmation order discharged pre-confirmation claims and issued a discharge injunction. The companies later filed a declaratory and injunctive action in a Florida bankruptcy court to stop the state-court litigation. The Eleventh Circuit held that the Florida bankruptcy court lacked jurisdiction to enforce an injunction issued by the Delaware bankruptcy court. The court explained that the bankruptcy court administering the debtor's estate retains authority to interpret and enforce its own confirmation order and to sanction alleged violations of its discharge injunction, even when the alleged contemnors or the affected litigation are elsewhere. The court did not decide whether the creditors' claims were actually discharged or whether the published bankruptcy notice satisfied due process. Instead, it vacated the district court's judgment and remanded with instructions to transfer the proceeding to the United States District Court for the District of Delaware, which could refer it to the Delaware bankruptcy court. The court treated transfer as more efficient than dismissal without prejudice.

Opinion

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