Darling Hardware v. United States (In Re Darling Hardware)

DAVID E. NIMS, Jr., Bankruptcy Judge..

The United States has filed a motion to dismiss the plaintiffs’ complaint because of a lack of jurisdiction and because the doctrine of sovereign immunity is an absolute bar to this proceeding.

As this is a related case and the parties have not consented to the bankruptcy judges entering any dispositive orders, this report of the findings of fact and the conclusions of law and recommendations is set forth below.

FACTS

Darling Hardware, a partnership (Darling) consisting of Paul Darling and Ada Darling, husband and wife, filed a voluntary petition under Title…