Opinion ID: 684347
Heading Depth: 2
Heading Rank: 3

Heading: Breach of CSM's By-Laws

Text: 41 The bankruptcy court dismissed Lone Star's claims against Patagonica for breach of its obligation under CSM's by-laws to give Lone Star notice and first refusal upon Patagonica's sale of its CSM interest to Loma Negra, and against Perez and Loma Negra for having induced Patagonica to so breach. The court found that these claims were beyond the territorial jurisdiction of the courts of New York. Lone Star contends this was error because the failure to give notice was an instrumental step in achieving the secret illegal collusion at Lone Star's bankruptcy sale in New York. 42 As the bankruptcy court failed to give Lone Star credit for the full measure of its allegations of illegal collusion, it failed also to consider these claims in relation to the alleged illegal collusion. We therefore remand the breach of contract and inducement claims for reconsideration without deciding whether these claims do, or do not, allege a cause of action within the jurisdiction of the bankruptcy court, or whether principles of ancillary jurisdiction permit their consideration.