Judge Sandra Feuerstein
The Korsunskys and the Brooks each held 50 percent interests in Aqua Shield Inc. In 2008 the Korsunskys demanded arbitration on claims of conversion, and breaches of fiduciary duty and the shareholders agreement. The Brooks’ 2009 Nassau supreme court action sought Aqua Shield’s dissolution (Dissolution Action). Finding that they breached their fiduciary duties and engaged in conversion, the arbitrator’s Feb. 1, 2013, award required the Brooks to pay Aqua Shield $161,110 and $140,258 to the Korsunskys. After the Korsunskys’ state action to confirm the award (Confirmation Action) the Brooks’ removed the Dissolution and Confirmation Actions to district court under 28 USC §1334 as related to their Feb. 21 Chapter 11 bankruptcy case. The bankruptcy court found the Korsunsky’s arbitral award not subject to Bankruptcy Code §362′s automatic stay. District court remanded the Dissolution Action and Confirmation Action to Nassau supreme court under 28 USC §1452(b). It found the actions non-core proceedings “related to” the Brooks’ bankruptcy proceeding. The non-core Dissolution and Confirmation involve only state law claims. Their adjudication by state court will not affect administration of the Brooks’ bankruptcy estate.
