Smith v. Arizona, State of et al

Filing 44

ORDER re 36 Notice of Filing Bankruptcy: 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 eithert his case against the Burtons can be dismissed or the stay can be lifted. (See document for details). Signed by Judge James A Teilborg on 10/11/11. (LAD)

1

WO

2
3
4
5
6

IN THE UNITED STATES DISTRICT COURT

7

FOR THE DISTRICT OF ARIZONA

8
9
10
11
12
13
14
15
16
17
18
19

)
)
)
Plaintiff,
)
)
vs.
)
)
State of Arizona; Arizona State Board of)
Education; Maricopa County Community)
College District; Paradise Valley)
Community College; The Higher Learning)
Commission; Kelly Burton and John Doe)
Burton, husband and wife; Dr. Paul Dale)
and Jane Doe Dale, husband and wife; Dr.)
Denise Digianfilippo and Joe Doe)
Digianfilippo, husband and wife; Dr. Mary)
Lou Mosley and John Doe Mosley,)
)
husband and wife,
)
)
Defendants.
)
)
Margaret Marie Smith,

No. CV 11-1437-PHX-JAT
ORDER

20
21

On September 16, 2011, Counsel for Defendants Kelly Ann Fitzsimmons Burton and

22

John Doe Burton (a/k/a David Perry Burton), filed a notice that these Defendants have filed

23

a petition for bankruptcy (Doc. 36). An automatic stay is in place for these Defendants.

24

However, there is no stay of this case as a whole or and no stay as to any of the other

25

Defendants. Specifically, a bankruptcy court may extend the automatic stay to a proceeding

26

against co-defendants of the Debtor when “the claims against them and the claims against

27

the debtor are so inextricably interwoven, presenting common questions of law and fact,

28

which can be resolved in one proceeding.” In re Ionosphere Clubs, Inc., 111 B.R. 423, 434

1

(Bankr.S.D.N.Y. 1990) (internal quotations omitted). The party seeking to extend the stay

2

must “affirmatively seek an order from the bankruptcy court, which has authority to extend

3

the protections of 362(a) pursuant to its equity powers under section 105.” C.H. Robinson

4

Company v. Paris & Sons, Inc., 180 F.Supp.2d 1002, 1018 (N.D. Iowa 2001) (emphasis

5

added).

6

Here, until a co-Defendant(s) files notice with this Court that they are seeking, or have

7

been granted, a stay by the bankruptcy court, no stay will be in place as to any co-Defendant.

8

Additionally, Plaintiff shall keep this Court informed of the status of the Burtons’

9

bankruptcy, whether Plaintiff is pursuing her claims in the bankruptcy, and whether, as a

10

result of the bankruptcy, this civil action against the Burtons can be dismissed. Therefore,

11

IT IS ORDERED that Plaintiff shall file a status report regarding her claims against

12

the Burtons on December 1, 2011, and shall file a further status report on the first of the

13

month every four months thereafter (with the next report being due April 1, 2012) until either

14

this case against the Burtons can be dismissed or the stay can be lifted.

15

DATED this 11th day of October, 2011.

16
17
18
19
20
21
22
23
24
25
26
27
28
-2-