NI Creditors Trust v. Crown Packaging Corp. (In re Nukote International, Inc.), Adv. Proc. No. 11-00102 (Bankr. M.D. Tenn. September 2, 2011)

Memorandum Opinion Granting Motion to Dismiss for Improper Venue in the United States Bankruptcy Court for the Middle District of Tennessee by U.S. Bankruptcy Judge Keith M. Lundin –  Rejecting the reasoning of two other bankruptcy courts in the Sixth Circuit, Middle District of Tennessee U.S. Bankruptcy Judge Lundin concludes: “These avoidance actions ‘arise in’ a case under Title 11. The small dollar venue exception in 28 U.S.C. § 1409(b) applies.” The opinion provides both a reasoned, statutory construction yielding this result and an scholarly, exhaustive treatment of the legislative history of § 1409 beginning with the Bankruptcy Reform Act of 1978.   Click here to see a note on this opinion. To see a complete discussion on the use of the “venue defense” see:  $11,725 (Pre-April 1, 2010 $10,950) Threshold for Bankruptcy Preference Venue Impediment to Claims.