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Keywords

plaintiffdefendantjurisdictionmotionbankruptcy
plaintiffdefendantmotionburden of proofbankruptcy

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In re Kersting, 85 B.R. 61

Facts

The case involves two adversary proceedings against James Wood Kersting, who was a debtor at the time of filing. The first proceeding was initiated by Quality Seafoods, which had filed for Chapter 11 in Seattle, Washington, and assigned its adversary claim to the plaintiff. The second proceeding was filed by the plaintiff in its own right, alleging nondischargeability of debt against Kersting, who was identified as an officer of Quality Seafoods. The plaintiff sought to transfer the proceedings from Ohio to Seattle, where the bankruptcy case had already been moved.

The two adversary proceedings identified in the caption above were brought against the same defendant, James Wood Kersting, who, at the time that the adversary proceedings were filed, was a debtor in this court.

Issue

Whether the adversary proceedings should be transferred from Ohio to Seattle.

Now before us is a motion by the plaintiff to transfer the consolidated adversary proceedings to the United States Bankruptcy Court for the Western District of Washington at Seattle.

Rule

Analysis

The court analyzed the factors for transferring the adversary proceedings, noting that the events leading to the proceedings occurred in Seattle, where the witnesses reside. The court emphasized the importance of conducting the adversary proceeding in the same court as the debtor's bankruptcy case, which had already been transferred to Seattle. Although there were equities favoring the defendant, the court found that the factors favoring the plaintiff outweighed them, particularly given the convenience of the parties and the location of relevant events.

In the end, though, the court must conduct a balancing exercise, bearing in mind that it is movant who bears the burden of proof.

Conclusion

The court granted the motion to transfer the adversary proceedings to Seattle, concluding that it was in the interest of justice and convenience for the parties.

Upon a balance of the respective equities, we conclude that they heavily favor plaintiff.

Who won?

The plaintiff prevailed in the motion to transfer the adversary proceedings to Seattle. The court found that the majority of relevant events occurred in Seattle, and the witnesses were located there, making it more efficient to conduct the proceedings in that jurisdiction. The court also noted that the defendant's bankruptcy case was already pending in Seattle, which further supported the transfer.

In the circumstances of this proceeding, we reach the conclusion that plaintiff has carried its burden of showing that a transfer would be in the interest of justice and the convenience of the parties.

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