Bankruptcy Court Misjudged Injury Claim, Eighth Cir. Panel Says

A Minnesota bankruptcy court exceeded its authority in blocking a creditor’s $400,000 claim over alleged assault and battery, an appellate panel ruled.

A district court, not the bankruptcy court, is generally the proper venue to try any “personal injury tort” claims, Judge Cynthia A. Norton of the US Bankruptcy Appellate Panel for the Eighth Circuit said in a Friday opinion.

Other related issues and defenses should first be fully developed in the bankruptcy court—with briefing, arguments, and evidence—so that the court and the parties can decide how and where to resolve the creditor’s claim and whether any defenses bar it, ...