In Gavin Solmonese v. Shyamsundar (In re Amcad Holdings), Adversary No. 15-51979 (MFW) (Bankr. D. Del. June 14, 2016), U.S. Bankruptcy Judge Mary F. Walrath of the District of Delaware found that she lacked jurisdiction over claims for breach of fiduciary duty brought by a liquidating trustee against former managers and officers of Chapter 11 debtors. The opinion is instructive for its concise and straightforward explanation of the limits of the court’s post-confirmation jurisdiction over noncore matters.
In 2014, AmCad Holdings and American Cadastre (debtors) commenced Chapter 11 bankruptcy cases. The following year, the court entered an order confirming the debtors’ joint plan of liquidation. A liquidating trust was established pursuant to the plan, and the trustee was appointed. The plan assigned certain estate assets, including causes of action, to the liquidating trust. The plan provided that the court would retain jurisdiction over “causes of action,” broadly defined in the plan to include all of the debtors’ causes of action based in whole or in part on any act or omission or other event occurring prior to the petition date or during the course of the bankruptcy case, through and until the effective date of the plan.
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