Opinion

O'Connor v. Saints Cyril and Methodius Roman Catholic Church

Court
District Court, E.D. New York
Filed
Sep 5, 2023
Cited by
0 cases

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF NEW YORK

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:

: MEMORANDUM AND ORDER

In Re: Child Victims Act Cases Removed From

State Court : 23-CV-4761, 23-CV-4893,

: 23-CV-4971, 23-CV-5026,

23-CV-5104, 23-CV-5113,

:

53-CV-5134, 23-CV-5199

:

:

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ANN M. DONNELLY, United States District Judge :

Before the Court are eight cases brought und er the New York Child Victims Act, each

alleging sexual abuse against persons associated with the defendants and the Diocese of

Rockville Centre. The plaintiffs brought approximately 220 of these cases in New York state

courts, asserting solely state law claims. The defendants removed all of them to the Eastern

District of New York, on the theory that they are “related to” a bankruptcy case, which is

proceeding in the Southern District of New York. 28 U.S.C. § 1334. The defendants argue that

removal will allow for an efficient transfer of the cases to the Southern District. The plaintiffs

move to remand to state court.

The Diocese is the debtor in the bankruptcy proceedings. However, the defendants argue

that they “are co-insured entities under the Diocese’s insurance policies, and any damages for

which [they] might become liable could therefore diminish those insurance policies, which are

the property of the Diocese’s estate.” See In re: Child Victims Act Cases Removed from State

Ct., No. 23-CV-4741, 2023 WL 5287067, at *5 (E.D.N.Y. Aug. 17, 2023). The Diocese has

filed a motion to consolidate these cases under 28 U.S.C. § 157(b)(5), which authorizes

consolidation of personal injury claims in the district court in which a debtor’s bankruptcy case

is pending. That motion is currently pending in the Southern District before Judge Lorna

Schofield. The defendants request that the Court deny the plaintiffs’ motions to remand or, at the

very least, hold them in abeyance until Judge Schofield rules on the Diocese’s motion.1

Six of my colleagues in this District have granted similar plaintiffs’ motions and have

remanded 129 cases to state courts. Their reasoning is persuasive. Accordingly, I grant the

plaintiffs’ motions for substantially the same reasons set forth in Judge Hector Gonzales’s

opinion in Child Victims Act Cases, 2023 WL 5287067, and Judge Gary Brown’s opinion in In

re: Child Victims Act Cases Removed from State Ct., No. 23-CV-05029, 2023 WL 5123396

(E.D.N.Y. Aug. 10, 2023).2 Like Judges Gonzalez and Brown, I conclude that these cases are

not “core” Bankruptcy Code proceedings; rather, they are “related to” a case pending under the

Bankruptcy Code. Therefore, mandatory abstention applies under 28 U.S.C. § 1334(c)(2). The

defendants’ argument that their cases fall under the exception to mandatory abstention in 28

U.S.C. § 157(b)(4) is not convincing. That provision applies only to “the liquidation or

estimation of contingent or unliquidated personal injury tort or wrongful death claims against the

1 The plaintiff in Eaton v. St. Barnabas, No. 23-CV-04893, has not yet moved to remand, but he filed a

letter requesting a pre-motion conference on his anticipated motion to remand, raising the same issues

as the other plaintiffs’ motions. (ECF No. 10.) The defendant has not filed a response, although my

Individual Rules call for a response “within seven days.” Rule 4.A. However, the defendant in the

Eaton case is represented by the same counsel as the defendants in two other Child Victims Act cases

pending before me. Counsel has filed substantially identical memoranda in opposition in those two

cases. Accordingly, I see no need to defer the resolution of these cases until the defendant responds in

the Eaton case. See In re: Child Victims Act Cases, 2023 WL 5287067, at *1 n.1 (reaching the same

conclusion).

2 See In re: Child Victims Act Cases Removed from State Ct., No. 23-CV-4723, 2023 WL 5587623, at *2

(E.D.N.Y. Aug. 29, 2023) (Chen, J.); In re Child Victims Act Cases Removed from State Ct., No. 23-

CV-4789, 2023 WL 5436138, at *1 (E.D.N.Y. Aug. 23, 2023) (Ross, J.); In re: Child Victims Act Cases

Removed from State Ct., No. 23-CV-4782, ECF No. 13 at 1 (Gujarati, J.); In re: Child Victims Act

Cases Removed from State Ct., No. 23-CV-4584, ECF No. 13 at 1 (Azrack, J.) (all incorporating Judge

Gonzales’s and Judge Brown’s opinions by reference).

estate.” 28 U.S.C. § 157(b)(2)(B). The bankruptcy judge has already determined that these

lawsuits are not claims against the Diocese’s estate and that the defendants do not have a viable

claim for indemnification against the Diocese, so the exception does not apply. Child Victims

Act Cases, 2023 WL 5287067, at *6 (citing In re Roman Cath. Diocese of Rockville Ctr., New

York, 651 B.R. 622, 644–45, 657–58 (Bankr. S.D.N.Y. 2023)). In any event, remand is

appropriate under the doctrines of permissive abstention, see 28 U.S.C. § 1334(c)(1), and

equitable remand, see 28 U.S.C. § 1452(b).

Moreover, the bankruptcy proceeding has already caused significant delays, and any

further obstruction of state court actions will only make it more difficult for the plaintiffs to

prove their claims. See Child Victims Act Cases, 2023 WL 5123396, at *3. A stay pending the

resolution of the Diocese’s motion in the Southern District is therefore not warranted, and the

cases are remanded.

CONCLUSION

The plaintiffs’ motions to remand are granted. The cases listed in the caption are hereby

remanded. The Clerk of Court is respectfully directed to close these cases and to mail a copy of

this order to the New York State Supreme Courts in Nassau and Suffolk Counties.

SO ORDERED.

s/Ann M. Donnelly

________________________

ANN M. DONNELLY

United States District Judge

Dated: Brooklyn, New York

September 5, 2023

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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