In re Fitness Mgmt. Group

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.
ABI Membership is required to access the full summary of In re Fitness Mgmt. Group. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Commercial case opionion summary, case decided on November 23,2009, LexisNexis #1209-112