contracts

[Obediance]

What is the name of your state (only U.S. law)? wi

A large company breached a confidiential contract in which the small company was a third party benefiiciary. The large company also concealed the contract from the small company.

The large company also smeared the small company and used self insurance to protect the large company's name from the illegal errors (a couple people are in jail) of certain of its employees.

The small company had to declare bankruptcy because of the actions/inactions of the large company. The small company did not do anything wrong.

Can the small company countersue in bankruptcy court for this contract breach? Is the bankruptcy court all encompassing in its jurisdiction, even for normally state infractions?

 

[CameronNewport]

Can the small company countersue in bankruptcy court for this contract breach? Is the bankruptcy court all encompassing in its jurisdiction, even for normally state infractions?

Yes, the small company can sue for breach of contract in the bankruptcy court even though it is generally a matter for the state courts.

 

[Zigner]

Yes, the small company can sue for breach of contract in the bankruptcy court even though it is generally a matter for the state courts.

tsk tsk tsk -

Read the OP again, then come back and explain why said small company can't sue said large company for breach of contract...

EDIT: I should say for breach of this contract.

 

[CameronNewport]

tsk tsk tsk -

Read the OP again, then come back and explain why said small company can't sue said large company for breach of contract...

EDIT: I should say for breach of this contract.

Why don't you explain it? I was responding to the question of the bankruptcy court's jurisdiction to hear a breach of contract lawsuit. If you want to discuss the feasibility of winning such a lawsuit based on the few facts shared, go ahead.

 

[seniorjudge]

What is the name of your state (only U.S. law)? wi

A large company breached a confidiential contract in which the small company was a third party benefiiciary. The large company also concealed the contract from the small company.

The large company also smeared the small company and used self insurance to protect the large company's name from the illegal errors (a couple people are in jail) of certain of its employees.

The small company had to declare bankruptcy because of the actions/inactions of the large company. The small company did not do anything wrong.

Can the small company countersue in bankruptcy court for this contract breach? Is the bankruptcy court all encompassing in its jurisdiction, even for normally state infractions?

Zig...this is much too subtle for CornponeNerdDork.

Don't even try.

 

[CameronNewport]

Zig...this is much too subtle for CornponeNerdDork.

Don't even try.

No really, why don't one of you please elaborate on the subtleties that I missed, and explain why the small company can't sue the large company for breach of contract? I'm sure the OP would appreciate the help, and I can't wait to read your response myself.

 

[HomeGuru]

Yes, the small company can sue for breach of contract in the bankruptcy court even though it is generally a matter for the state courts.

**A: BK Court is not the proper venue for such legal action of this nature.

 

[CameronNewport]

**A: BK Court is not the proper venue for such legal action of this nature.

You obviously know little about bankruptcy law. Ever heard of Anna Nicole Smith?

 

[tranquility]

Third party beneficiary by a person in BK where some have already gone to jail? I'm glad the other's have had some experience in such matters, but I'm thinking this is a research kind of thing and not a quick answer kind of thing. My goodness, I have questions before I even start narrowing the issues. But then, I don't do this stuff, I do taxes. (And, OH! the questions I see there.)

 

[CameronNewport]

Third party beneficiary by a person in BK where some have already gone to jail? I'm glad the other's have had some experience in such matters, but I'm thinking this is a research kind of thing and not a quick answer kind of thing. My goodness, I have questions before I even start narrowing the issues. But then, I don't do this stuff, I do taxes. (And, OH! the questions I see there.)

After a bankruptcy is filed, the federal courts have jurisdiction over "related" cases that would ordinarily only be heard in state courts. A cause of action that may result in money damages is an asset, and therefore, it is "related" to the bankruptcy (that is an unarguable fact per federal case law). Homoguru is dead wrong about the bankruptcy court being an improper "venue" for the case.

Mind you, I'm not saying that the federal court will not abstain from hearing the case after review (certain requirements must be met), nor am I saying that the OP will win the breach of contract action.

I'm still waiting for seniorjudge and zinger to explain the subtleties that I missed which will apparently explain why the small company can't win a breach of contract action against the large company. Will they please enlighten us? If not for me, then for the OP?