In re Fitness Mgmt. Group

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.
Issue: 
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Commercial case opionion summary, case decided on November 23,2009, LexisNexis #1209-112