Opinion
No. CV 11-1437-PHX-JAT.
October 11, 2011
ORDER
On September 16, 2011, Counsel for Defendants Kelly Ann Fitzsimmons Burton and John Doe Burton (a/k/a David Perry Burton), filed a notice that these Defendants have filed a petition for bankruptcy (Doc. 36). An automatic stay is in place for these Defendants. However, there is no stay of this case as a whole or and no stay as to any of the other Defendants. Specifically, a bankruptcy court may extend the automatic stay to a proceeding against co-defendants of the Debtor when "the claims against them and the claims against the debtor are so inextricably interwoven, presenting common questions of law and fact, which can be resolved in one proceeding." In re Ionosphere Clubs, Inc., 111 B.R. 423, 434 (Bankr.S.D.N.Y. 1990) (internal quotations omitted). The party seeking to extend the stay must "affirmatively seek an order from the bankruptcy court, which has authority to extend the protections of 362(a) pursuant to its equity powers under section 105." C.H. Robinson Company v. Paris Sons, Inc., 180 F.Supp.2d 1002, 1018 (N.D. Iowa 2001) (emphasis added).
Here, until a co-Defendant(s) files notice with this Court that they are seeking, or have been granted, a stay by the bankruptcy court, no stay will be in place as to any co-Defendant. Additionally, Plaintiff shall keep this Court informed of the status of the Burtons' bankruptcy, whether Plaintiff is pursuing her claims in the bankruptcy, and whether, as a result of the bankruptcy, this civil action against the Burtons can be dismissed. Therefore,
IT IS ORDERED that Plaintiff shall file a status report regarding her claims against the Burtons on December 1, 2011, and shall file a further status report on the first of the month every four months thereafter (with the next report being due April 1, 2012) until either this case against the Burtons can be dismissed or the stay can be lifted.