Saturday, October 15, 2011
In papers filed Friday in Federal District Court in Manhattan, lawyers for the team’s owners said that the trustee, Irving H. Picard, “is not entitled to a jury trial” because the two remaining claims arise out of the bankruptcy code. Generally, bankruptcy courts are not authorized to conduct jury trials.
They are saying, in essence, that a case that started in Federal Bankruptcy Court but is now being heard in United States District Court should be tried under bankruptcy rules by Judge Jed S. Rakoff. Picard responded with a request for a jury trial. “Despite the defendants’ trepidation to submit to a jury’s judgment, the trustee’s constitutional right remains,” his filing said. “Nothing here impedes that.”