- 11 U.S.C.
In re Fitness Mgmt. Group
Nov
23
2009
Ruling
State enforcement of health club bond requirements against debtor was subject to police and regulatory power exception from stay.
Procedural posture
The State of North Carolina brought an action in a State court against a bankruptcy debtor alleging that the debtor committed unfair and deceptive trade practices by failing to maintain adequate bonds for its health clubs. The State moved for a declaration of exemption from the automatic stay under 11 U.S.C.S. § 362(b)(4) based on the State's exercise of its police and regulatory powers.
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Court
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