Meridian Capital CIS Fund v. Burton

Before Buccanneer filed for bankruptcy, the company fired its CEO, who then filed a claim for breach of contract in the bankruptcy. The CEO later dropped the claim and filed a tortious interference with contract claim in state court against Buccaneer's secured creditor, Meridian. After Meridian moved to federal court, the bankruptcy court sent the tortious interference claim back to state court.The Fifth Circuit held that the tortious interference claim alleging a direct injury to the CEO was not property of the estate, and thus there was no basis for bankruptcy court jurisdiction. Therefore, the court affirmed the judgment remanding the case back to state court. View "Meridian Capital CIS Fund v. Burton" on Justia Law