PURVIS v. Blitz USA Inc et al

Filing 23

ORDER granting 20 Motion to Stay. Status report due 7/23/2012. Ordered by Judge Hugh Lawson on 1/23/2012. (nbp)

IN THE UNITED STATES DISTRICT COURT
FOR THE MIDDLE DISTRICT OF GEORGIA
VALDOSTA DIVISION
SHERRI PURVIS, individually
and as next friend and natural
guardian for JAMES C. PURVIS,

:
:
:
:
Plaintiff,
:
:
v.
:
:
BLITZ, U.S.A., INC., WAL-MART
:
STORES, INC., WAL-MART
:
STORES EAST, L.P., and WAL:
MART STORES EAST, INC.,
:
:
Defendants.
:
_______________________________ 

Case No. 7:11-cv-111 (HL)

ORDER
Before the Court is a Motion to Stay filed by Defendant Wal-Mart Stores
East, L.P. (“Wal-Mart”) (Doc. 20). For the reasons stated below, the Motion is
granted.
In November 2011, Blitz, U.S.A., Inc. (“Blitz”), a co-defendant in this action,
filed for bankruptcy. Under 11 U.S.C. § 362(a)(1), when a debtor defendant files
for bankruptcy, all judicial proceedings are automatically stayed as to that
defendant. Thus, the case was stayed at that point as to Defendant Blitz.
Now, Defendant Wal-Mart asks this Court to stay Plaintiffs’ claims against
it while co-defendant Blitz works through its bankruptcy proceedings. Wal-Mart
argues that this stay is necessary because the causes of action in Plaintiffs’
complaint fall squarely within the contractual indemnification obligation that Blitz

owes to Wal-Mart, and therefore, it would be a waste of judicial resources to
proceed in a case against Wal-Mart without Blitz. Blitz is contractually obligated
to defend and indemnify Wal-Mart in connection with this matter, and is liable for
any judgment obtained against Wal-Mart, as well as any costs and fees incurred
by Wal-Mart for its defense of this matter. Therefore, Wal-Mart argues that
imposing a stay is appropriate.
The Court is convinced that it is in the best interests of the parties to stay
this case as to all Defendants while Blitz is engaged in bankruptcy proceedings.
Therefore, this case is stayed until the bankruptcy is resolved. In the meantime,
the Court orders the parties to file a status report every six months, with the first
status report due on Monday, July 23, 2012.
SO ORDERED, this 23rd day of January, 2012.

s/ Hugh Lawson
HUGH LAWSON, SENIOR JUDGE
ebr

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