Sheppard v. Wells Fargo Fin. Leasing Inc. (In re Sheppard)
Jul
12
2006
Ruling
Motion to dismiss by debtor in state court action against creditor with no counterclaim did not violate stay.
Procedural posture
Debtor had filed a state court action against creditor. In that action, the creditor answered but did not file a counterclaim. It moved to dismiss that lawsuit with prejudice. When it became apparent that the creditor intended to go forward on its motion to dismiss, the debtor filed the instant emergency motion to stay the state court action. The state court nevertheless went ahead with the hearing and granted the motion to dismiss.
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Court
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