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Wednesday, October 20, 2010

Ind. Decisions - No Indiana cases decided today by 7th Circuit, but a bankruptcy case of interest

In Redmond, James A. v. Fifth Third Bank. This 17-page opinion by Judge Sykes covers a number of issues, and this one in closing:

As if more were needed, the bankruptcy judge properly held that the state-court forum was appropriate to litigate Redmond’s potential claims. The amount needed to cure a mortgage default is a question of state law; § 1322(e) of the Bankruptcy Code expressly provides that the amount necessary to cure a default is determined “in accordance with the underlying agreement and applicable nonbankruptcy law.” 11 U.S.C. § 1322(e). The state court could therefore adequately entertain Redmond’s challenges to the amounts Pinnacle was claiming.

Redmond argues that he could not bring his claims in state court because bankruptcy courts have exclusive jurisdiction over sanctions under § 362(h) of the Bankruptcy Code. Id. § 362(h). This argument is meritless. For the reasons we have explained, Redmond has no basis for sanctions under bankruptcy law. AFFIRMED.

Posted by Marcia Oddi on October 20, 2010 11:08 AM
Posted to Ind. (7th Cir.) Decisions