Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_19-cv-05749/USCOURTS-cand-3_19-cv-05749-0/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

---

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

KENSINGTON APARTMENT 

PROPERTIES, LLC,

Plaintiff,

v.

LOANVEST IX, L.P., et al.,

Defendants.

Case No. 19-cv-05749-VC 

ORDER GRANTING MOTION TO 

WITHDRAW REFERENCE

Re: Dkt. No. 1

Kensington’s motion to withdraw the reference to the bankruptcy court is granted.1 While 

the case is related to Kensington’s bankruptcy, the causes of action all arise under California law. 

See Notice of Removal and Complaint at 13-18, Kensington v. Loanvest IX, No. 17-4018 (Bankr. 

N.D. Cal. 2017), Dkt. No. 1-1; Order Denying Motion to Remand at 5, No. 17-4018, Dkt. No. 22 

(explaining that the claims could have arisen outside a bankruptcy case, but that the court 

nonetheless had “related to” jurisdiction). The case proceeded in the bankruptcy court, and the 

court denied summary judgment as to Kensington’s claims for breach of contract, usury, failure 

to provide payoff demand statements, and money had and received. See Order on Motions for 

Summary Judgment, No. 17-4018, Dkt. No. 187; Order Granting Motion to Amend, No. 17-

4018, Dkt. No. 198. The case is ready to proceed to trial on these state-law claims, and 

Kensington has not consented to the bankruptcy court’s jurisdiction, so a withdrawal of reference 

is appropriate. See In re Cinematronics, Inc., 916 F.2d 1444, 1451 (9th Cir. 1990) (“We . . . 

conclude that bankruptcy courts cannot conduct jury trials on noncore matters, where the parties 

1 The defendants have not filed an opposition to the motion to withdraw the reference.

Case 3:19-cv-05749-VC Document 13 Filed 01/27/20 Page 1 of 2
2

have not consented.”); 28 U.S.C. § 157(d) (“The district court may withdraw, in whole or in part, 

any case or proceeding referred under this section, on its own motion or on timely motion of any 

party, for cause shown.”); id. § 157(e) (“If the right to a jury trial applies in a proceeding that 

may be heard under this section by a bankruptcy judge, the bankruptcy judge may conduct the 

jury trial . . . with the express consent of all the parties.”).

Because the bankruptcy court lacks authority to enter final judgment on its summary 

judgment rulings, Kensington is ordered to submit the rulings, along with all relevant briefs, to 

this Court for review within 14 days of this order. See 28 U.S.C. § 157(c)(1) (“A bankruptcy 

judge may hear a proceeding that is not a core proceeding but that is otherwise related to a case 

under title 11. In such proceeding, the bankruptcy judge shall submit proposed findings of fact 

and conclusions of law to the district court, and any final order or judgment shall be entered by 

the district judge after considering the bankruptcy judge's proposed findings and conclusions and 

after reviewing de novo those matters to which any party has timely and specifically objected.”); 

Fed. R. Bankr. P. 9033 (“Section 157(c)(1) of title 28 requires a bankruptcy judge to submit 

proposed findings of fact and conclusions of law to the district court when the bankruptcy judge 

has heard a non-core proceeding.”).

IT IS SO ORDERED.

Dated: January 27, 2020

______________________________________

VINCE CHHABRIA

United States District Judge

Case 3:19-cv-05749-VC Document 13 Filed 01/27/20 Page 2 of 2