Chapter 7 Ap Dismissal Without Prejudice

IN THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF TEXAS TYLER DIVISION IN RE: ROBERT MICHAEL DAVIDSON and VANESSA E. KOMAR

Debtors ROBERT MICHAEL DAVIDSON and VANESSA E. KOMAR Plaintiffs v. JAY GROSSM AN and EUDICE GROSSMAN Defendants

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EOD 11/07/2005

Case No. 05-62258

Chapter 7

Adversary No. 05-6069

ORDER DISMISSING ADVERSARY PROCEEDING WITHOUT PREJUDICE FOLLOWING DISMISSAL OF UNDERLYING CHAPTER 13 CASE On October 18, 2005, the Court issued a “Notice of Intent to Dismiss Adversary Proceeding Without Prejudice Following Dismissal of Underlying Bankruptcy Case” in which the Court directed that, in the absence of the presentation of sufficient grounds for continuation of the above-referenced adversary proceeding within ten (10) days of the entry of such order, the above-referenced adversary proceeding would be dismissed without prejudice. The Court finds that the Debtor-Plaintiffs filed an objection to the proposed dismissal and the Defendants filed a response to the Plaintiffs' objection and the Court has reviewed those documents. Upon due consideration, and in light of the

dismissal of the Debtor-Plaintiffs' underlying bankruptcy case with prejudice at their own request, this Court has no legitimate basis upon which to exercise its subject matter jurisdiction. Though the Court does not agree with the Defendants' assertion that §1334 jurisdiction, once properly appropriated, can simply evaporate, developments in a case can certainly affect whether a bankruptcy court should elect to continue to exercise jurisdiction or judicial power over a controversy that no longer has bankruptcy estate implications. Due to the dismissal of the underlying case with prejudice, this dispute has essentially returned to a state law dispute between two non-debtors and it should properly be adjudicated elsewhere. Accordingly, the Court finds that just cause exists for the entry of the following order. IT IS THEREFORE ORDERED that the above-referenced adversary proceeding is hereby DISMISSED without prejudice.

Signed on 11/7/2005

THE HONORABLE BILL PARKER CHIEF UNITED STATES BANKRUPTCY JUDGE

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