Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_09-cv-01327/USCOURTS-azd-2_09-cv-01327-1/pdf.json

Nature of Suit Code: 423
Nature of Suit: Bankruptcy Withdrawal 28 USC 157
Cause of Action: 28:0157 Motion for Withdrawal of Reference

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

In re Gorilla Companies LLC, et al., 

Debtors. _________________________________

Gorilla Companies, LLC, a Delaware

limited liability company,

Plaintiff, 

vs.

Sharon Van Tassel, and Darrell Van

Tassel, husband and wife; Robb M.

Corwin and Jillian C. Corwin, husband

and wife; 13, LLC, an Arizona limited

liability company; and 13 Holdings,

LLC, an Arizona limited liability

company,

Defendants. 

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No. CV-09-01327-PHX-DGC

No. AP-09-00507-RJH

No. BK-09-02898-RJH

No. BK-09-02901-CGC

No. BK-09-02903-GBN

No. BK-09-02905-CGC

ORDER

Gorilla Companies LLC (“Gorilla”) is a debtor-in-possession currently under chapter

11 bankruptcy. In re Gorilla, No. BK-09-02898-RJH (Bankr. D. Ariz. Feb. 20, 2009).

Gorilla filed an adversary pleading in its pending bankruptcy case. Dkt. #1, Gorilla v. Van

Tassel, No. AP-09-00507-RJH (Bankr. D. Ariz. May 8, 2009). The adversary complaint

alleges that Sharon Van Tassel, a former employee, misappropriated funds from one of

Gorilla’s wholly-owned subsidiaries. Id.

Case 2:09-cv-01327-DGC Document 16 Filed 06/22/10 Page 1 of 3
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Van Tassel commenced this action by filing a motion to withdraw the reference from

bankruptcy court. Dkt. #1, Gorilla v. Van Tassel, No. CV-09-01327-PHX-DGC (D. Ariz.

June 19, 2009). The Court denied the motion in an order dated October 2, 2009. Dkt. #11.

The Court found that the adversary proceeding consists of noncore bankruptcy claims, but

falls under the bankruptcy court’s jurisdiction as a proceeding that is otherwise related to a

case under title 11. Id. at 8-9. Concluding that there were insufficient grounds for

withdrawal, the Court ordered that this action remain in bankruptcy court for adjudication

of pretrial matters. Id. at 9.

Defendants have filed a renewed motion to withdraw. Dkt. #12. The motion is fully

briefed. Dkt. ##13-15. No party has requested oral argument. For reasons stated below, the

motion will be denied without prejudice.

The Court noted in the October 2 order that because it has de novo review over any

appeals related to noncore proceedings, constitutional concerns “may necessitate future

withdrawal in the event the case proceeds to a jury trial.” Dkt. #11 at 9 (emphasis added).

Defendants have filed several motions for summary judgment in the adversary proceeding.

Dkt. ##105-09, No. AP-09-00507-RJH. A hearing on those motions will be held before the

bankruptcy court on August 2, 2010. Dkt. #133. Defendants recognize that depending on

how the summary judgment motions are decided, the adversary proceeding “will either end

or continue to trial.” Dkt. #14, No. CV-09-01327-PHX-DGC. Defendants request that the

Court withdraw the reference for any surviving claim “[o]nce the bankruptcy court rules on

[the] summary judgment motions[.]” Dkt. #12 at 2.

Because the bankruptcy court has yet to rule on the summary judgment motions, and

because resolution of those motions may eliminate the need for trial, the renewed motion to

withdraw the reference is premature. The motion will be denied without prejudice to refiling

if triable claims remain after summary judgment has concluded in the adversary proceeding.

Case 2:09-cv-01327-DGC Document 16 Filed 06/22/10 Page 2 of 3
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IT IS ORDERED that Defendants’ renewed motion to withdraw the reference from

bankruptcy court (Dkt. #12) is denied without prejudice.

DATED this 22nd day of June, 2010.

Case 2:09-cv-01327-DGC Document 16 Filed 06/22/10 Page 3 of 3