Green Tree Servicing, LLC v. Duncan

2008 WL 5435566 (2008)

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Nature of the Case

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Facts

D bought a mobile home, and received a loan from Conseco. Conseco later filed for reorganization under Chapter 11 of the federal Bankruptcy Code. CFN investment Holdings, LLC purchased all of Conseco's servicing contracts in the bankruptcy proceeding, including Conseco's contract with D. The bankruptcy court's order approving the sale states that CFN purchased the assets free of any prior claims against Conseco. CFN later became P. P filed a repossession action against D. D filed counterclaims and a motion for a jury trial. D alleged that Ps committed fraud, intentional and emotional distress by harassment, and assault. The District Court denied the motion for a jury trial, and D sought a writ of mandamus. This Court issued the writ to compel the District Court to conduct a jury trial. P filed a motion to dismiss and informed the District Court of Conseco's bankruptcy proceedings. The court dismissed Ds counterclaims, concluding that P was 'a party to a federal bankruptcy proceeding,' and the court lacked jurisdiction due to the automatic stay provision of the federal Bankruptcy Code. D appealed. P brought up several grounds for upholding the dismissal including that an arbitration clause in the financing contract barred D's claims.