A particular proceeding commenced in or removed to the Bankruptcy Court shall be transferred to the District Court for hearing and trial by a district judge only in accordance with the procedure below.
(a) Filing of Motion Required. A party seeking such transfer shall file a motion therefor in the Bankruptcy Court certifying one or more of the following grounds:
(1) It is in the interest of justice, in the interest of comity with state courts, or respect for state law that this District Court should abstain from hearing the particular proceeding as is contemplated by 28 U.S.C. § 1334(c)(1)
(2) The particular proceeding is based upon a state law claim or state law cause of action with respect to which an action could not have been commenced in a court of the United States absent jurisdiction under 28 U.S.C. § 1334
; that an action on the claim or cause of action is commenced and can be timely adjudicated in a state forum; and that under 28 U.S.C. § 1334(c)(2)
this District Court must abstain from hearing the particular proceeding.
(3) The particular proceeding is a personal injury tort or a wrongful death claim within the purview of 28 U.S.C. § 157(b)(5)
(4) Resolution of the particular proceeding requires consideration of both Title 11 U.S.C. and other laws of the United States regulating organizations or activities affecting interstate commerce and thus must be withdrawn to this District Court under U.S.C. § 157(d).
(5) The proceeding is under 11 U.S.C. § 303
, a jury trial is demanded, and no statement of consent to trial before a bankruptcy judge has been filed.
(6) Cause exists, within the contemplation of 28 U.S.C. § 157(d)
, for the withdrawal of the particular proceeding to this District Court (a specification of such alleged cause must be stated).
(b) Time for Filing Motion for Transfer.
(1) If movant is an original plaintiff, the motion shall be filed within 20 days after the proceeding is commenced.
(2) If movant is an original defendant, intervenor, or an added party, the motion shall be filed within 20 days after movant has entered appearance or been served with summons or notice.
(3) In a proceeding that has been removed under 28 U.S.C. § 1452
, the removing party shall file the motion within 20 days after the removal; other parties shall file within 20 days after being served with summons or notice.
(4) In a proceeding of the kind designated in (a)(3) above, a recommendation to the District Court may be filed by a bankruptcy judge sua sponte at any time.
(5) Failure to timely move for transfer of a particular proceeding for hearing and trial by a district judge shall be construed as consent to final entry of judgment in the Bankruptcy Court.
(c) Transmission to District Court. The motion for transfer, together with a written recommendation of a bankruptcy judge, shall be transmitted by the clerk of the Bankruptcy Court to the clerk of the District Court. The latter shall assign the motion to a district judge who shall rule ex parte or upon such notice as the district judge shall direct. The ruling shall be filed in the Bankruptcy Court as an order of the district judge.
(d) Continuation of Proceeding. In instances where the ruling is not dispositive of the particular proceeding transferred, the proceeding shall go forward to hearing, trial, and judgment as the district judge’s order shall direct.
(e) Docketing. A proceeding retained for hearing and determination by a district judge shall be carried on the civil docket of the clerk of the District Court. Certified copies of all final orders and judgments entered by the district judge shall be transmitted by the clerk of the District Court and filed with the clerk of the Bankruptcy Court.
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