Opinion
21-CV-8692 (AJN) (BCM)
03-01-2022
TOMAS GABRIEL CALEL and CARLOS GEOVANY PONCIO ZARATE, on behalf of themselves, FLSA Collective Plaintiffs, and the Class, Plaintiffs, v. SITE 25 RESTAURANT CONCEPTS, LLC d/b/a WEI WEST, et al., Defendants.
ORDER
BARBARA MOSES UNITED STATES MAGISTRATE JUDGE
On February 23, 2022, defendant Site 25 Restaurant Concepts, LLC d/b/a Wei West (Site 25) filed a suggestion of bankruptcy in this action. (Dkt. No. 31.) Pursuant to 11 U.S.C. § 362, this action is therefore automatically stayed as against Site 25. That same day, counsel for both defendants filed a letter-motion (Dkt. No. 32), seeking a stay of the action as to the nondebtor defendant, Alan Phillips, on the basis that an automatic stay can apply to non-debtors when the claim "will have an immediate adverse economic consequence for the debtor's estate." Queenie, Ltd. v. Nygard Int'l, 321 F.3d 282, 287 (2d Cir. 2003). Plaintiffs' counsel did not respond to the letter-motion, which is thus unopposed.
It is hereby ORDERED that this action is STAYED. No later than May 31, 2022, and every 3 months thereafter ( e.g. , August 31, 2022, November 30, 2022, February 28, 2023, etc.), defendants shall file a letter apprising the Court of the status of the bankruptcy and whether the stay as against both defendants should be maintained.
SO ORDERED.