Dobler & Sons, LLC et al v. California Organics, LLC

Filing 158

ORDER Staying Cases and Referring Cases to Bankruptcy Court. Signed by Judge Lucy H. Koh on 3/19/12. (lhklc3, COURT STAFF) (Filed on 3/19/2012)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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United States District Court
For the Northern District of California

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SAN JOSE DIVISION

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DOBLER & SONS, LLC, et al.,

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Plaintiffs,
v.
CALIFORNIA ORGANICS, LLC, et al.,
Defendants.

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OCEANO PACKING COMPANY, et al.,

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Plaintiffs
v.
CALIFORNIA ORGANICS, LLC, et al.,
Defendants

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Case No.: 10-CV-04092-LHK
Related Case No.: 11-CV-00529-LHK
ORDER STAYING CASES AND
REFERRING CASES TO
BANKRUPTCY COURT
(re: dkt. #155)

On March 14, 2012, California Organics, LLC (“California Organics”) filed a “Notice of

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Removal of Civil Action to the United States Bankruptcy Court.” See ECF No. 155. Removal is a

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procedure for removing state actions to federal court and therefore does not apply here, as the two

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above-captioned matters are already pending in federal district court. See 28 U.S.C. §§ 1441,

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1446, 1452. California Organics’ improper “Notice of Removal,” however, alerted the Court to the

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fact that on February 9, 2012, California Organics filed a petition for relief under chapter 11 of title

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11 of the United States Code, 11 U.S.C. §§ 101, et seq. See ECF No. 155 at 4.

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Case No.: 10-CV-04092-LHK; Related Case No.: 11-CV-00529-LHK
ORDER STAYING CASES AND REFERRING CASES TO BANKRUPTCY COURT

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Pursuant to § 362(a) of the Bankruptcy Code, the filing of a bankruptcy petition operates as

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an automatic stay of all pending judicial proceedings. Accordingly, this action is STAYED

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pending resolution of the bankruptcy proceedings in Bankruptcy Court, and all pending Court

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deadlines are hereby VACATED, including, specifically, the following in Case No. 10-cv-04092-

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LHK: (1) Settlement Conference, scheduled for March 22, 2012, before Magistrate Judge Howard

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R. Lloyd, see ECF No. 147; (2) Oceano Packing Company, LLC’s Motion to Dismiss

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Counterclaims by Summar Financial, LLC, set for hearing on April 26, 2012, see ECF No. 118; (3)

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Manjar, Inc.’s Motion to Dismiss the Cross-Claim of Michael Barnes and California Farms

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Investors, LLC, set for hearing on April 26, 2012, see ECF No. 137; (4) Dobler & Sons, LLC; SLO

United States District Court
For the Northern District of California

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County Organics, LLC; ASA Farms, Inc; and Braga Ranch, Inc.’s Motion for Leave to Amend

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Plaintiffs’ Third Amended Complaint, set for hearing on April 26, 2012, see ECF No. 141; (5)

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Manjar, Inc.’s Motion for Summary Judgment, or in the Alternative, for Partial Summary

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Judgment, as to Dobler & Sons Plaintiffs, set for hearing on April 26, 2012, see ECF No. 146; and

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(6) Case Management Conference, set for April 26, 2012, see ECF No. 154; as well as the

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following in Related Case No. 11-cv-00529-LHK: (7) Oceano Packing Company, LLC’s Motion

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for Leave to Amend Plaintiffs’ Second Amended Complaint, set for hearing on April 26, 2012, see

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ECF No. 134; (8) Manjar, Inc.’s Motion for Summary Judgment, or in the Alternative, for Partial

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Summary Judgment, as to Plaintiff Oceano Packing Company, set for hearing on April 26, 2012,

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see ECF No. 149; (9) Summar Financial, LLC’s Application for Determination of Good Faith

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Settlement Pursuant to Cal. Civ. Code § 877, see ECF No. 156; and (10) Case Management

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Conference, set for April 26, 2012, see ECF No. 158.

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Furthermore, the Court finds that the two above-captioned matters (1) are civil proceedings

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related to California Organic’s case under title 11, and (2) were pending in the District Court on the

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date California Organic’s title 11 case was filed, and are thus suitable for reference to the

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Bankruptcy Judges of this District. 1 See 28 U.S.C. § 157(a); B.L.R. 5011-1(b). Accordingly, the

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two above-captioned matters are hereby referred to the Bankruptcy Court.

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Pursuant to 28 U.S.C. § 157(c)(1), “[a] bankruptcy judge may hear a proceeding that is not a core
proceeding but that is otherwise related to a case under title 11.” “An action is related to
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Case No.: 10-CV-04092-LHK; Related Case No.: 11-CV-00529-LHK
ORDER STAYING CASES AND REFERRING CASES TO BANKRUPTCY COURT

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IT IS SO ORDERED.

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Dated: March 19, 2012

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LUCY H. KOH
United States District Judge

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United States District Court
For the Northern District of California

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bankruptcy if the outcome could alter the debtor’s rights, liabilities, options, or freedom of action
(either positively or negatively) and which in any way impacts upon the handling and
administration of the bankrupt estate.” In re Fietz, 852 F.2d 455, 457 (9th Cir. 1988) (adopting
Pacor, Inc. v. Higgins, 743 F.2d 984, 994 (3d Cir. 1984)) (quotation marks omitted).
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Case No.: 10-CV-04092-LHK; Related Case No.: 11-CV-00529-LHK
ORDER STAYING CASES AND REFERRING CASES TO BANKRUPTCY COURT