- 11 U.S.C.
Scientific Weight Loss LLC v. U.S. Med. Care Holdings LLC
Oct
22
2008
Ruling
Filing of amended complaint against debtor trademark owner violated stay.
Procedural posture
Plaintiffs, a franchisee with an allegedly exclusive license and three managing members, sued defendants, a trademark owner and related individuals and entities. Plaintiffs alleged twelve causes of action, including unfair competition, fraud, and breach of contract. Pending before the court were plaintiffs' application for a temporary restraining order (TRO) and plaintiffs' ex parte motion for leave to file a second amended complaint (SAC).
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- 11 U.S.C.
Hoang v. Urban Purchasing LLC
May
08
2008
Ruling
Motion to stay Fair Labor Standards Act case against debtor's co-defendant denied absent direct connection or identity of interest.
Procedural posture
Plaintiff former employees brought an action against defendants, two employer companies and their principals, alleging that defendants failed to pay overtime wages required by the Fair Labor Standards Act by improperly classifying the employees as independent contractors. One company filed a bankruptcy petition, and the remaining co-defendants moved to stay all proceedings pursuant to the automatic bankruptcy stay of 11 U.S.C.S. § 362(a)(1).
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:
- 11 U.S.C.
Dunnam v. Sportsstuff Inc.
Jan
23
2008
Ruling
Products liability stayed against third-party defendant due to indemnity agreement with debtor.
Procedural posture
In a product liability case between diverse parties, defendant recreational marine products manufacturer filed for chapter 11 bankruptcy protection, which, pursuant to 11 U.S.C. § 362(a)(1), automatically stayed proceedings as to it. The matter was before the federal district court on defendant retailer's motion to stay proceedings.
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- 11 U.S.C.
Haughton v. Alipio (In re Alipio)
Nov
29
2007
Ruling
Strict foreclosure conducted by condominium association without notice of bankruptcy was void.
Procedural posture
Movants, an individual and a corporation, as a nominee for a mortgage company, reopened a former chapter 7 proceeding against respondent debtor after the debtor had received a discharge. The movants filed a motion to annul an automatic stay of the state court foreclosure proceedings pending on the debtor's condominium unit.
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Court
:
- 11 U.S.C.
In re Cochonour
Aug
02
2007
Ruling
Administrator of decedent's estate violated stay by filing forgery action against debtor.
Procedural posture
A chapter 7 debtor claimed that a decedent's estate and an attorney who represented the estate violated the automatic stay provision of 11 U.S.C. § 362, he filed a motion to impose sanctions, pursuant to 11 U.S.C. § 362(k), on the estate and the attorney. The estate and the attorney opposed the motion.
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Court
:
- 11 U.S.C.
Midkiff v. Lowes Home Ctrs. Inc.
Jul
30
2007
Ruling
Action against store that sold collapsed ladder subject to stay in manufacturer's bankruptcy.
Procedural posture
Plaintiff customer asserted a breach of warranty claim pursuant to the Uniform Commercial Code, Va. Code Ann. §§ 8.01-1 et seq. (2006), against defendant store to recover damages for injuries she sustained when a ladder she purchased from the store collapsed while in use. Before the court was the store's motion for summary judgment or, in the alternative, to stay proceedings pending the outcome of a manufacturer's bankruptcy proceedings.
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- 11 U.S.C.
Live Nation Worldwide Inc. v. GTA Inc.
May
18
2007
Ruling
Creditor could proceed against guarantor without first proceeding against debtor.
Procedural posture
A debtor executed a sublease whereby it agreed to sublease from plaintiff corporation. Concurrently with the sublease, defendant guarantor entered into a guaranty. The debtor filed a petition for relief under chapter 11. The corporation sued the guarantor to enforce the unconditional guaranty of payment. The corporation moved for summary judgment under Fed. R. Civ. P. 56.
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- 11 U.S.C.
In re Healthessentials Solutions Inc.
May
17
2007
Ruling
Automatic stay applied to government lawsuit under False Claims Act.
Procedural posture
The United States (Government) filed a motion seeking entry of an order declaring that the automatic stay of 11 U.S.C. § 362(a)(1) did not apply to the Government's pursuit of a lawsuit under the False Claims Act, 31 U.S.C. § 3729-33.
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:
- 11 U.S.C.
Huskey v. Allen County Farmers Servs.
Sep
05
2006
Ruling
Stay violation could not be grounds for dismissal of personal injury case where debtor's prior conduct in the action was inconsistent with stay defense.
Procedural posture
Plaintiffs, a husband and wife, sued defendants, a farm supplier and a wire company, for damages from an alleged injury the husband received when wire was unloaded from his truck. Prior to the suit, the wire company filed for bankruptcy and a stay was issued pursuant to 11 U.S.C. § 362(a)(1) pending the bankruptcy's resolution. Before the federal district court were the wire company's motions for summary judgment and to file an amended answer.
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- 11 U.S.C.
In re Steward
Feb
24
2006
Ruling
Co-op association and its attorney violated the automatic stay by continuing to pursue the removal of the debtor as executor of a probate estate in state court.
Procedural posture
The debtor moved pursuant to 11 U.S.C. § 362(a) for a determination that a co-op association and its attorney were in violation of the automatic stay by continuing to pursue the removal of the debtor as executor of a probate estate in state court. The violation was willful and warranted an award of attorney's fees and costs.
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Court
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