Professor Spencer discusses a recent N.D. Ill. case, In re Federalpha Steel LLC, 341 B.R. 872 (Bkrtcy. N.D. Ill., May 31, 2006), at his Federal Civil Practice Bulletin.
A paragraph from the case –
After confirmation of a chapter 11 plan, moreover, “related to” jurisdiction is “sharply reduced.” Cytomedix, Inc. v. Perfusion Partners & Assocs., Inc., 243 F.Supp.2d 786, 789 (N.D.Ill.2003); see Pettibone Corp. v. Easley, 935 F.2d 120, 122 (7th Cir.1991). The number of issues potentially affecting the estate or the administration of the case necessarily decreases at that point. Conseco, Inc. v. Davis (In re Conseco, Inc.), 318 B.R. 425, 432 (Bankr.N.D.Ill.2004). Post-confirmation “related to” jurisdiction is therefore appropriate “only to ensure that reorganization plans are implemented and to protect estate assets devoted to implement the confirmed plan.” Cytomedix, 243 F.Supp.2d at 789. Once assets have left the estate, the court’s jurisdiction to decide disputes involving them lapses. FedPak, 80 F.3d at 214.