Allied Holding Company, LLC v. MAD Enterprise Group, LLC et al

Filing 34

ORDER staying case. On or before Tuesday, September 19, 2017, and every ninety (90) days thereafter, Defendant LLC is DIRECTED to provide a status report regarding its bankruptcy proceedings. On or before Wednesday, June 28, 2017, Plaintiff and Mr. Bassuk are DIRECTED to submit briefing--as to whether the claims against Mr. Bassuk should be temporarily stayed. Signed by Judge Roy B. Dalton, Jr. on 6/21/2017. (VMF)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION
ALLIED HOLDING COMPANY, LLC,
Plaintiff,
v.

Case No. 6:16-cv-1408-Orl-37KRS

MAD ENTERPRISE GROUP, LLC; and
HOWARD S. BASSUK,
Defendants.
_____________________________________
ORDER
In the instant action, Plaintiff asserts claims against Defendants for breach of
contract, fraud, civil theft, conversion, and unjust enrichment. (Doc. 5.) Importantly, the
Complaint alleges that Defendant Howard S. Bassuk (“Mr. Bassuk”) is the owner and
sole member of Defendant MAD Enterprise Group, LLC (“Defendant LLC”). (Id. ¶ 3.)
On June 20, 2017, Defendant LLC submitted a Suggestion of Bankruptcy notifying
the Court that it had filed a voluntary petition for relief under Chapter 7 of the
U.S. Bankruptcy Code. (Doc. 33); see also In re MAD Enter. Grp., LLC, Case No.
6:17-bk-4071, Doc. 1 (Bankr. M.D. Fla. June 20, 2017). Because the initiation of a voluntary
bankruptcy automatically stays judicial proceedings brought against the debtor,
11 U.S.C. § 362(a)(1), the claims against Defendant LLC must be stayed. In addition, given
the close relationship between Mr. Bassuk and Defendant LLC, the Court will also require
the parties to submit briefing on whether this action should be temporarily stayed in its
entirety. See 11 U.S.C. § 101(31)(defining “insiders”); see also Landis v. N. Am. Co.,
-1-

299 U.S. 248, 255 (1936) (discussing the impropriety of an indefinite discretionary stay).
Accordingly, it is ORDERED AND ADJUDGED as follows:
1.

The claims asserted against Defendant MAD Enterprises Group, LLC are
STAYED.

2.

On or before Tuesday, September 19, 2017, and every ninety (90) days
thereafter, Defendant LLC is DIRECTED to provide a status report
regarding its bankruptcy proceedings.

3.

On or before Wednesday, June 28, 2017, Plaintiff and Mr. Bassuk are
DIRECTED to submit briefing—supported by legal authority—as to
whether the claims against Mr. Bassuk should be temporarily stayed during
the pendency of the bankruptcy proceeding against Defendant LLC. Each
brief is limited to five (5) pages.

DONE AND ORDERED in Chambers in Orlando, Florida, on June 21, 2017.

Copies to:
Counsel of Record
-2-