King Steel Iron Work Corp. v. QSR Steel Corporation, LLC
- Nelson Roman
- 7:24-cv-06995
- U.S. District Court · Southern District of New York
- 13
In King Steel Iron Work Corp. v. QSR Steel Corporation, Judge Roman granted QSR Steel’s motion to transfer the removed case to Connecticut’s Bankruptcy Court.
King Steel Iron Work Corp., QSR Steel Corporation, LLC, and the other parties to the removed civil action, because the case was transferred to the U.S. Bankruptcy Court for the District of Connecticut.
What happened
King Steel Iron Work Corp. v. QSR Steel Corporation, LLC concerns a lawsuit that King Steel brought against QSR Steel and others over construction-related payment and other claims. QSR Steel had filed a Chapter 11 bankruptcy case in Connecticut and removed the lawsuit from New York state court to the Southern District of New York.
QSR Steel asked to move the lawsuit to the U.S. Bankruptcy Court for the District of Connecticut, or alternatively to the federal district court there for referral to that bankruptcy court. QSR Steel argued that the lawsuit was connected to its bankruptcy case and that transfer would promote efficiency and convenience. The motion states that King Steel consented to the requested transfer.
The court granted the defendant’s motion to transfer the case to the U.S. Bankruptcy Court for the District of Connecticut. The order also allowed the clerk to transfer the case immediately without following a specified local rule. Judge Nelson S. Roman issued the order.
The detailed version
- King Steel Iron Work Corp. v. QSR Steel Corporation, LLC · No. 7:24-cv-06995
- Nelson Roman
- Dec. 5, 2024
Background
King Steel Iron Work Corp. had a civil action pending in the New York Supreme Court for Westchester County against QSR Steel Corporation, LLC and other defendants. The claims arose from a construction agreement involving the installation and erection of stairs, platforms, and structural steel materials. King Steel alleged that it was not paid and asserted claims including foreclosure of a mechanic’s lien, breach of contract, account stated, unjust enrichment, quantum meruit, violation of the New York Prompt Payment Act, and diversion of trust funds. QSR Steel asserted a breach-of-contract counterclaim.
QSR Steel filed a voluntary Subchapter V Chapter 11 bankruptcy case in the U.S. Bankruptcy Court for the District of Connecticut on June 18, 2024. It later removed the New York state-court action to the Southern District of New York under the bankruptcy-related removal statutes. QSR Steel then moved to transfer the removed action to the Connecticut Bankruptcy Court under 28 U.S.C. § 1412 and Bankruptcy Rule 7087, or alternatively to the District of Connecticut under 28 U.S.C. § 1404(a). The motion states that King Steel consented to the transfer.
Court’s ruling
The court granted QSR Steel’s motion to transfer the case to the U.S. Bankruptcy Court for the District of Connecticut. The order permitted the clerk to transfer the case immediately without following Local Rule 83.1. The provided text of the order is incomplete after the words “The case shall be transferred without,” so it does not support stating any additional condition or qualification. Judge Nelson S. Roman signed the order on December 12, 2024.
Classification
This is a procedural order because it decides where the removed lawsuit will proceed and does not decide the underlying construction, contract, lien, or other claims on their merits.
Effect
The transfer affects King Steel, QSR Steel, and the other parties to the removed civil action by moving the case from the Southern District of New York to the U.S. Bankruptcy Court for the District of Connecticut.
Read the full 13-page opinion on CourtListener, the free public archive maintained by the Free Law Project.