V. CORE AND NON-CORE PROCEEDINGS
The original bankruptcy jurisdiction of the district court is divided between "cases" over which the jurisdiction is exclusive, and "proceedings" over which the jurisdiction is non-exclusive. The term "case" refers to the bankruptcy case itself. Under 28 U.S.C. § 157, the term "proceedings" relates to any action within a bankruptcy case that "arises under" a case, "arises in" a case, or is "related to" a case. Such proceedings may be either "core" or "non-core."
The Bankruptcy Code does not specifically define which civil proceedings "arise under" or "arise in" cases under the Bankruptcy Code. The legislative history of the 1978 Act "indicates that the phrase 'arising under Title 11,' or 'arising in' or 'related to cases under Title 11' was meant, not to distinguish between different matters, but to identify collectively a broad range of matters subject to the bankruptcy jurisdiction of federal courts." In re Wood, 825 F.2d 90, 92 (5th Cir. 1987); see also In re Lemco Gypsum, Inc., 910 F.2d 784, 786 (11th Cir. 1990).
Pursuant to 28 U.S.C. § 157(b)(1), a proceeding "arising under" a bankruptcy case is a proceeding that is created by the Bankruptcy Code or that is inherently associated with bankruptcy adjudication and administration of the estate, such as a complaint objecting to discharge. Under 28 U.S.C. § 157(c)(1), proceedings that are "related to" a bankruptcy case are proceedings which, in the absence of bankruptcy, could have been brought in a district or state court, but the outcome of which could alter the debtor's rights or liabilities or impact the administration of the bankruptcy case. A prime example would be a claim by the debtor for breach of a pre-petition contract. A proceeding "arising in" is a proceeding that is not based on any right expressly created by the Bankruptcy Code, but would have no existence outside of the bankruptcy. See Finley Grp. v. Working Media Grp. Atlanta, LLC (In re Redf Mktg., LLC), 536 B.R. 646 (Bankr. W.D.N.C. 2015); S. Cmty. Bank & Trust v. Goldston (In re 3G Props., LLC), 2010 Bankr. LEXIS 3597, No. 10-00178-8-JRL (Bankr. E.D.N.C. Oct. 14, 2010); Medlin v. Commr (In re Medlin), 269 B.R. 591 (Bankr. E.D.N.C. 2001); Tate v. NationsBanc Mortg. Corp. (In re Tate), 253 B.R. 653 (Bankr. W.D.N.C. 2000). Examples of matters "arising in" a bankruptcy case would include "administrative matters, orders to turn over estate property, determination of the extent or priority of liens, contempt matters, and actions to recover postpetition accounts." Tate, 253...
