Securities & Exchange Commission v. Llorens Associates, Inc.

JOHN J. GALGAY, Bankruptcy Judge.

This Court is being asked to waive, as if by, magic, the statutory requirements of objections to jurisdiction and to allow an answer which preceded such an objection by more than one year simply to disappear.

Since to allow such a disappearing act would contravene the spirit as well as the letter of the Federal Rules of Civil Procedure, this Court must conclude that a party in an adversary proceeding has waived its right to object to the jurisdiction of the Bankruptcy Court once it has answered and actively litigated the underlying dispute.

This controversy, the…