What is a “core proceeding” arising from a bankruptcy case? What standard is used to evaluate this issue? These were the questions asked by the Eighth Circuit case of In Re Schmidt, decided in 2011 (11-6028 to 11-6030). In this case, Klein Bank appealed the bankruptcy court’s order denying its motions to remand its replevin actions which had been removed from the state court to the bankruptcy court.
In denying the motions, the bankruptcy court had originally concluded that the replevin actions were core proceedings. The Eighth Circuit B.A.P. disagreed, stating that core proceedings are limited to those “arising under or arising in” a bankruptcy case.