Hearing Re: Status of Cross-Defendant Thomas’ Bankruptcy Stay.
At the issues conference on May 11, 2017 the court was advised that cross-defendant Thomas filed for Chapter 13 bankruptcy protection on January 13, 2017. Defendants contend that the bankruptcy court has 100% control of the shares of Affiliated Professional Services, Inc. and that the bankruptcy stays all proceedings in this action, including the action filed by the corporate plaintiff.
The court vacated the trial date, directed defendants’ counsel to provide a letter regarding the bankruptcy stay by June 16, 2017, and set this review hearing. At the time this tentative ruling was prepared, the letter had not been submitted.
- Actions May be Pursued Against Nonbankrupt Defendants/Cross-Defendants “... [A] bankruptcy stay is only effective as to the party in bankruptcy; a plaintiff must proceed against nonbankrupt defendants. (Barnett v. Lewis (1985) 170 Cal.App.3d 1079, 1088, 217 Cal.Rptr. 80; see also Lauriton v. Carnation