In re: Sheehan

Federal 7th Circuit Court
Civil Court
Personal Jurisdiction
Citation
Case Number: 
Nos. 21-2946 & 21-2954 Cons.
Decision Date: 
September 7, 2022
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Bankruptcy Ct. did not err in granting defendants-Irish creditors’ motion to dismiss on lack of personal jurisdiction grounds debtor’s adversary complaint in his Chapter 11 bankruptcy proceeding, alleging that defendants (who are located in Ireland and conduct business there) improperly exercised control over debtor’s property located in Ireland in violation of Bankruptcy Code’s automatic stay provisions. Existence of specific personal jurisdiction cannot depend solely on actions of plaintiffs or third-parties, and record showed that only link between defendants and Illinois was fact that plaintiff lived in Illinois and unilaterally filed bankruptcy petition in Illinois forum. Fact that defendants took actions, including taking control of debtor’s property pursuant to result of litigation in Ireland that allowed defendants to dispose of debtor’s property to satisfy debts owed to defendants, that had negative result on plaintiff in Illinois was insufficient to establish personal jurisdiction over defendants. Ct. rejected debtor’s claim that personal jurisdiction over defendants could be established through Bankruptcy Ct.’s in rem jurisdiction over debtor’s property.