Thomas Am. Stone & Bldg., Inc. v. White (In re White)
UNPUBLISHED
Creditor filed a state court action seeking to foreclose its interest in defendant's Utah real property. Defendant removed the case to Utah federal district court and, approximately two years later, filed a chapter 11 petition in California. Creditor moved for relief of stay in California, in order to proceed with the foreclosure action in Utah, and that motion had been granted by the California bankruptcy court. After the stay relief order was signed, but before it was entered, defendant/debtor obtained the Utah district court's referral of the Utah foreclosure action, as an ancillary action, to the Utah bankruptcy court. Creditor moved the Utah bankruptcy court to remand the case back to the district court, while defendant/debtor moved to transfer venue from the Utah bankruptcy court to the California bankruptcy court. Considering the equities of the case, the court concluded, based in large part on the California bankruptcy court's order allowing creditor to proceed with the Utah foreclosure action, that the case would more appropriately be decided by the Utah district court than by the California bankruptcy court. Creditor's case was remanded to the district court, with a recommendation that the district court deny the motion for change of venue.