This has led to confusion. See, e.g., A.H. Robins Co., Inc. v. Piccinin, 788 F.2d 994 (4th Cir. 1986) (using "stay" and "injunction" interchangeably and pointing out that the bankruptcy court may enjoin lawsuits under section 362(a), section 105(a) or its inherent power); Stanford v. Foamex L.P., No. 07-4225, 2009 U.S. Dist. LEXIS 32045, at *8 n. 7 (E.D. Pa. April 15, 2009) (concluding that "the practical effect" of the difference between extending the section 362(a) stay to non-debtors, or issuing a separate injunction pursuant to the bankruptcy court's power under section 105(a) is "academic"); In re Loewen Group, Inc., No. 98-6740, 2001 U.S. Dist. LEXIS 6482 (E.D. Pa. May 16, 2001) (placing the case against the non-debtors in suspense without reliance on either section 362(a) or section 105(a)); Smith v. Dominion Bridge Corp., No. 96-7580, 1999 U.S. Dist. LEXIS 2131, at *11 n. 3 (E.D. Pa. Mar. 2, 1999) (pointing out there is no need to satisfy requests for injunctive relief in order to obtain stay); In re Monroe Well Service, Inc., 67 B.R. 746, 751 (Bankr. E.D. Pa. 1986) (granting an injunction under section 105(a), without discussion of section 362(a)). Although the facts necessary to support the Court's determination at each step of the analysis may overlap, each step of the inquiry is distinct, independently necessary, and implicates different interests.
I note that several courts in this district have applied the four-factor test used to examine whether a party is indispensable for the purposes of Fed.R.Civ.P. 19 in the context of determining which parties are covered by Section 362(a)'s automatic stay. See, e.g., In re Loewen Group, Inc. Sec. Litig., No. 98-cv-6740, 2001 WL 530544 (E.D. Pa. May 16, 2001). Manning, Winters, and Clemens have not, however, urged that MES S is an indispensable party to the litigation, and I conclude that examination of whether McCartney's "unusual circumstances" exist is the appropriate way to determine the breadth of the Section 362(a) stay.
This has led to confusion. See, e.g.,A.H. Robins Co., Inc. v. Piccinin, 788 F.2d 994 (4th Cir.1986) (using " stay" and " injunction" interchangeably and pointing out that the bankruptcy court may enjoin lawsuits under section 362(a), section 105(a) or its inherent power); Stanford v. Foamex L.P., No. 07-4225, 2009 U.S. Dist. LEXIS 32045, at *8 n. 7 (E.D. Pa. April 15, 2009) (concluding that " the practical effect" of the difference between extending the section 362(a) stay to non-debtors, or issuing a separate injunction pursuant to the bankruptcy court's power under section 105(a) is " academic" ); In re Loewen Group, Inc., No. 98-6740, 2001 WL 530544, 2001 U.S. Dist. LEXIS 6482 (E.D.Pa. May 16, 2001) (placing the case against the non-debtors in suspense without reliance on either section 362(a) or section 105(a)); Smith v. Dominion Bridge Corp., No. 96-7580, 1999 WL 111465, *3, 1999 U.S. Dist. LEXIS 2131, at *11 n. 3 (E.D.Pa. Mar. 2, 1999) (pointing out there is no need to satisfy requests for injunctive relief in order to obtain stay); In re Monroe Well Service, Inc., 67 B.R. 746, 751 (Bankr.E.D.Pa.1986) (granting an injunction under section 105(a), without discussion of section 362(a)). Although the facts necessary to support the Court's determination at each step of the analysis may overlap, each step of the inquiry is distinct, independently necessary, and implicates different interests.
The Court is therefore passing certain to adjudicate whether the automatic stay extends to the Officers. In re Continential Airlines, Inc., 177 B.R. 475 (D. Del. 1993); Algemene Bank Nederland, N.V. v. Hallwood Indus., Inc., 133 B.R. 176 (W.D. Pa. 1991); In re Zenith Labs., Inc., 104 Bankr. 659, 664-66 (D.N.J. 1989); In re Loewen Group, Inc. Sec. Litig., 2001 WL 530544, at 3* (E.D. Pa. May 16, 2001). The second prong of the Abbott Laboratories test is the "hardship" to the parties.
NE Hub Partners, L.P. v. CNG Transmission, 239 F.3d 333, 342 (3d Cir.2001)(citing Philadelphia Fed'n of Teachers, American Fed'n of Teachers, Local 22, AFL-CIO v. Ridge, 150 F.3d 319 (3d Cir.1998)).In re Continental Airlines, Inc., 177 B.R. 475 (D.Del.1993); Algemene Bank Nederland, N.V. v. Hallwood Indus., Inc., 133 B.R. 176 (W.D.Pa.1991); In re Zenith Labs., Inc., 104 B.R. 659, 664-66 (D.N.J.1989); In re Loewen Group, Inc. Sec. Litig., 2001 WL 530544, at *3 (E.D.Pa. May 16, 2001).In re Continental Airlines, 177 B.R. 475 (D.Del.1993) (affirming bankruptcy court on finding that the automatic stay applied to certain actions against non-debtor defendants because, among other things, bankruptcy court had found identity of interest between debtor and non-debtor defendants)
We therefore hold that under section 105, the court had authority to stay these actions."); In re Loewen Group, Inc. Sec. Litig., 2001 WL 530544, at *3 (E.D.Pa. May 16, 2001) (extending the stay to Debtor's officers and directors who were non-debtor defendants in litigation in order to prevent the Debtor from engaging in "detailed and burdensome discovery"); Smith v. Dominion Bridge Corp., 1999 WL 111465, at *4 (Bankr.E.D.Pa. Mar. 2, 1999) (staying discovery in class action during debtor's reorganization); In re Adelphia Communications Corp., 302 B.R. 439, 452 (Bankr.S.D.N.Y.2003) (staying discovery in pending third party litigation to prevent, in part, "the risk of ... threat to a successful reorganization"). Likewise, the Court will extend the automatic stay of 11 U.S.C. § 362 to Non-Debtors in the underlying litigation pursuant to its power under § 105 of the Code.