Helmsing Leach attorneys obtain win for clients on all three major issues in recent lawsuit.

In David’s Auto Shredding, Inc. v. Shredder Co., LLC, Slip Copy, 2009 WL 8478359 (S.D. Ala. March 24, 2009), United States Magistrate Judge Sonja Bivins agreed with Helmsing Leach attorneys Joseph P. H. Babington and D. Andrew Stivender that a lawsuit filed against their clients should be transferred to a federal court in Texas based on a forum selection clause contained in an agreement binding on the plaintiff.  Before Judge Bivins’s recommendation could be considered by a district court judge, however, the plaintiff filed for Chapter 11 bankruptcy protection and the case was stayed.  After the plaintiff’s bankruptcy reorganization plan was confirmed by the bankruptcy court, the plaintiff requested the district court to transfer the lawsuit to that court.  In response, Attorneys Babington and Stivender argued that the action should not be transferred because the bankruptcy court did not have jurisdiction or, even if it did, circumstances did not warrant a transfer.  United States District Judge Kristi K. DuBose agreed and denied the plaintiff’s request. David’s Auto Shredding, Inc. v. Shredder Co., LLC, Slip Copy, 2011 WL 4025716 (S.D. Ala. September 12, 2011).  The court also asked the parties to brief the issue of whether Judge Bivins’s recommendation to transfer the case to Texas should be adopted.  The plaintiff argued that the case should not be transferred because of what the plaintiff asserted were changed circumstances relating to the bankruptcy.  In contrast, the Helmsing Leach attorneys argued that there was no evidence supporting the plaintiff’s position and that the forum selection clause was entitled to substantial weight.  Judge DuBose ruled in favor of Helmsing Leach’s client and adopted Judge Bivins’s recommendation to transfer the lawsuit to Texas. David’s Auto Shredding, Inc. v. Shredder Co., LLC, Slip Copy, 2011 WL 4915155 (S.D. Ala. October 17, 2011).