United States District Court, S.D. Mississippi, Southern Division
YOLO CAPITAL, INC. Plaintiff,
LOUIS J. NORMAND, JR., Individually, LOUIS J. NORMAND, JR., TRUSTEE OF AMERICAN SUCCESS IRREVOCABLE TRUST, TRUCK CAPITAL, LLC, COAST MANAGEMENT SYSTEMS, LLC, GLOBAL TRANSPORTATION REINSURANCE CO., LTD., Defendants.
R. WATKINS, O'HARA WATKINS, LLC, COUNSEL FOR DEFENDANTS
ORDER REFERRING CIVIL ACTION TO BANKRUPTCY
SULEYMAN OZERDEN, UNITED STATES DISTRICT JUDGE
matter comes before the Court upon Motion for Automatic
Referral to Bankruptcy Court Dkt # 34] (“Motion”)
filed by Defendants, Louis J. Normand, Jr., individually,
Louis J. Normand, Jr., as Trustee of American Success
Irrevocable Trust, Truck Capital, LLC, Coast Management
Systems, LLC, and Global Transportation Reinsurance Co., Ltd.
(collectively, “Defendants”). After reviewing the
facts and considering the same, the Court finds that the
Motion is well taken and should be granted. The Court finds
July 11, 2017, Plaintiff, Yolo Capital, Inc.
(“Plaintiff”), originally filed this action
against Defendants as Case No. 1:17-cv-00180 in the U.S.
District Court for the Western District of North Carolina
(the “North Carolina Action”), alleging that
Defendants breached a Guaranty Agreement, guaranteeing
non-party National Truck Funding, LLC's (“National
Truck”) performance under a Note Agreement and
related Promissory Note, and sought to recover amounts due
under the Promissory Note from the date of National
Truck's alleged default. [Dkt. # 1.]
Prior to the commencement of this action, on June 25, 2017,
National Truck filed a voluntary petition under Chapter 11 of
the Bankruptcy Code in the United States Bankruptcy Court for
the Southern District of Mississippi, Case No. 17-51243-KMS
(the “Chapter 11 Case”) and, subsequently listed
Plaintiff as a creditor who has claims secured by National
Truck's property and identified Defendants as co-debtors
on the debt to Plaintiff. (See Chapter 11 Case, Dkt.
August 23, 2017, Defendants filed a Motion to Transfer Venue
seeking to transfer the North Carolina Action to the U.S.
District Court for the Southern District of Mississippi.
[Dkt. # 9-10.]
January 26, 2018, the U.S. District Court for the Western
District of North Carolina entered its Memorandum of Decision
and Order, granting Defendants' Motion to Transfer
pursuant to 28 U.S.C. § 1412, which applies to the
transfer of cases “arising in or related to cases under
title 11, ” and noting that “[t]he Plaintiff does
not dispute that the present action ‘relates to'
National Truck's bankruptcy proceeding.” [Dkt. #
20, p. 4-5, n. 2.]
January 30, 2018, Plaintiff advised the Court that it had no
objection to the Memorandum of Decision and Order, entered on
January 26, 2018.
February 23, 2018, this Court entered a Notice [Dkt. # 22]
confirming that the North Carolina Action had been
transferred from the U.S. District Court for the Western
District of North Carolina to this Court.
U.S.C. § 157(a) provides that “[e]ach district
court may provide that any or all cases under title 11 and
any or all proceedings arising under title 11 or arising in
or related to a case under title 11 shall be referred to the
bankruptcy judges for the district.” Rule 83.6 of the
Local Uniform Civil Rules for the United States District
Courts for the Northern and Southern Districts of Mississippi
provides that “[a]ll cases under Title 11 and all civil
proceedings arising under Title 11 or arising in or related
to cases under Title 11 are referred to the bankruptcy judges
of this District pursuant to 28 U.S.C. § 157(a).”
8. Referral is appropriate as this action is a proceeding
“arising in or related to” the Chapter 11 Case
given that adjudication of this action will have a direct
impact on the assets and liabilities of National Truck in the
Chapter 11 Case and the administration of the Chapter 11 Case
as a whole, by among other things, potentially decreasing the
amount of claims against the bankruptcy estate and freeing
potential assets to be paid to other creditors. See In re
Wood, 825 F.2d 90, 91 (5th Cir. 1987)
(finding that a proceeding is “related to” the
bankruptcy case if it could “conceivably have
an effect on the estate being administrated by
bankruptcy” (emphasis in original) (quotation
omitted)); see also Dkt. # 10, 5-8.
Court finds that this civil shall be referred to the United
States Bankruptcy Court for the Southern District of
Mississippi, Southern Division, consistent with L.U. Civ. R.
83.6 and 28 U.S.C. § 157(a).
IT IS ORDERED that the Motion for Automatic Referral to
Bankruptcy Court is hereby granted. This civil action is
hereby referred to the Bankruptcy Court.