Opinion
Civil Action No. 01-2128-CM
March 21, 2003
MEMORANDUM AND ORDER
Pending before the court is defendant Walter G. Berry's Motion to Transfer (Doc. 101). As set forth below, defendant's motion is denied as moot without prejudice.
Plaintiffs commenced this action on March 16, 2001, asserting various causes of action against defendants including breach of contract and breach of fiduciary duty. Defendants have filed counterclaims alleging breach of contract and negligence.
On April 2, 2002, counsel for defendants filed with this court a notice (Doc. 100) of defendant Berry's filing of Chapter 11 bankruptcy in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division, Case No. 02-31430-HCA-11. Defendant Berry requests the court to transfer this case to the United States District Court for the Northern District of Texas, Dallas Division pursuant to 28 U.S.C. § 1412. Plaintiffs oppose the motion to transfer.
The filing of a petition in bankruptcy operates as an automatic stay, applicable to all entities, of the continuation of any judicial action or proceeding against the party who has filed the bankruptcy petition. See 11 U.S.C. § 362. Accordingly, defendant's motion to transfer is denied as moot without prejudice to be reasserted, if at all, only if and when the Bankruptcy Court allows plaintiffs to continue to pursue their claims against defendant Walter G. Berry, III.