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In re Burgess

In re Burgess

Ruling
State court action against LLC of which debtor held 100 percent member interest was not subject to automatic stay.
Procedural posture

A creditor filed a motion for relief from the automatic stay to continue state court litigation against a limited liability corporation (LLC) for breach of a lease agreement. A Chapter 7 trustee opposed the motion, asserting that the stay applicable to the debtor should be extended to prohibit actions against the LLC because its membership interests were owned entirely by the debtor.

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Consumer opinion summary, case decided on April 26, 2010 , LexisNexis #0710-036