McLorn et al v. Fleetwood Motor Homes of Indiana, Inc., et al.

Filing 32

ORDER staying this lawsuit against Defendant Fleetwood and placing this lawsuit on inactive status until June 1, 2009. This lawsuit against Defendants Beaudry and Fleetwood will be dismissed on June 1, 2009, unless prior to this date Plaintiffs have moved to lift the stay in the bankruptcy court, see PDF document for details. IT IS FURTHER ORDERED that the Court's March 4, 2009 Order is VACATED. Signed by Magistrate Judge Lawrence O Anderson on 3/20/09. (LSP)

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA

) ) ) Plaintiffs, ) ) vs. ) ) Fleetwood Motor Homes of Indiana, Inc.,) d/b/a/ American Coach and Beaudry RV) ) Company, ) ) Defendants. ) Dana and Janet McLorn,

No. CV-08-1602-PHX-LOA ORDER

This case arises upon Defendant Fleetwood Motor Homes' ("Fleetwood") Notice of Filing Bankruptcy, filed on March 19, 2009, advising the Court and all parties that on March 10, 2009, Defendant Fleetwood filed a voluntary Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the Central District of California, Riverside Division, Case No. 09-14254-MJ. (docket # 31) It is unknown what effect, if any, Defendant Fleetwood's bankruptcy petition will have on its alleged settlement with Plaintiffs on or about March 2, 2009. (see docket # 29) By virtue of the automatic stay imposed pursuant to 11 U.S.C. § 362(a)(1) with the filing of Defendant Fleetwood's bankruptcy petition, all pending matters against Defendant Fleetwood will be stayed until further order of the Court. 11 U.S.C. § 362(a) (1); O'Donnell v. Vencor Inc., 466 F.3d. 1104 (9th Cir. 2006). On December 4, 2008, this Court also stayed this case as to Defendant Beaudry RV Company only due to its filing a

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voluntary bankruptcy petition in the United States Bankruptcy Court for the District of Arizona, No. BK-08-16533-EWH, on November 18, 2008. (docket # 24) On the Court's own motion, IT IS ORDERED staying this lawsuit against Defendant Fleetwood and placing this lawsuit on inactive status until June 1, 2009. This lawsuit against Defendants Beaudry and Fleetwood will be dismissed on June 1, 2009 pursuant to Rule 41(b) (lack of prosecution), FED.R.CIV.P., unless prior to the scheduled dismissal date, Plaintiffs demonstrate in writing that Plaintiffs have moved to lift the stay in the bankruptcy court but the request has not been ruled upon or has been denied; Plaintiffs have sought to reduce the claim(s) against the subject debtors Beaudry and Fleetwood to judgment in the bankruptcy court in an adversary proceeding and the adversary proceeding has not yet been adjudicated despite Plaintiffs' due diligence in seeking its resolution; or Plaintiffs have timely demonstrated a reasonable basis for continuance of this lawsuit against Defendants Beaudry and Fleetwood on inactive status. Any party may ask the Court to schedule an informal status conference before June 1, 2009 to inform the Court what action, if any, has been undertaken in the bankruptcy court that would permit this lawsuit against Defendants Beaudry and Fleetwood to proceed. IT IS FURTHER ORDERED that the Court's March 4, 2009 Order is hereby VACATED. IT IS FURTHER ORDERED that all counsel shall use proper capitalization in all future captions as mandated by LRCiv 7.1(a)(3). Dated this 20th day of March, 2009.

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