Wu v. Desert Palace Inc

Filing 8

ORDER this action is STAYED pending further order from the bankruptcy court. FURTHER ORDERED that Wu must file a status report by Tuesday, July 19, 2016, informing the court of the status of Desert Palace's bankruptcy case. Signed by Judge Jennifer A. Dorsey on 1/19/16. (Copies have been distributed pursuant to the NEF - MMM)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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Yanrong Wu,

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Plaintiff

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Desert Palace, Inc., et al.,

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Order Staying Case Due to Pending
Bankruptcy

v.

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2:15-cv-00435-JAD-NJK

Defendants

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Plaintiff Yanrong Wu brings this lawsuit against Desert Palace, Inc. alleging that her

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employer discriminated and retaliated against her in violation of Title VII, the Americans with

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Disabilities Act, and the Rehabilitation Act.1 A summons was issued for Desert Palace on March

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11, 2015,2 but there is no evidence in the record that Desert Palace was served with process. So

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on July 14, 2015, the court sent Wu a notice that this action would be “dismissed without

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prejudice” unless she filed proof of service on the defendants by August 13, 2015, or showed

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good cause why service was not timely completed.3 Wu timely responded that she could not

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effectuate service because Desert Palace had filed a voluntary petition under Chapter 11 of the

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Bankruptcy Code on January 15, 2015.4

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Wu has shown good cause why she did not timely serve the summons and

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complaint—Desert Palace’s pending bankruptcy case. “In order to protect the estate from being

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depleted by creditors’ lawsuits and seizures of property and provide the debtor breathing room to

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reorganize, 11 U.S.C. § 362(a) imposes an automatic stay” upon the filing of a bankruptcy

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petition.5 To accomplish these goals, § 362 automatically prohibits:

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ECF 1.

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ECF 3.

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ECF 6.

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ECF 7.

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In re Palmdale Hills Prop., LLC, 654 F.3d 868, 874–75 (9th Cir. 2011) (citing White v. City of
Santee, 186 B.R. 700, 704 (Bankr. App. 9th Cir. 1995)).

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(1) commencing or continuing actions against the debtor that began
or could have begun before the bankruptcy was filed, or to recover
a pre-petition claim against the debtor; and (2) “any act to obtain
possession of property of the estate or of property from the estate
or to exercise control over the property of the estate.”6

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The automatic stay prohibited Wu from serving Desert Palace with a copy of the summons and

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complaint within the time allowed under FRCP 4(m). Exercising its discretion, the court now

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stays this action under 11 U.S.C. § 362 pending further order from the bankruptcy court.

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Accordingly, IT IS HEREBY ORDERED that this action is STAYED pending further

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order from the bankruptcy court. IT IS FURTHER ORDERED that Wu must file a status report

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by Tuesday, July 19, 2016, informing the court of the status of Desert Palace’s bankruptcy case.

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Dated: January 19, 2016

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_______________________________
______________________
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Jennifer A. Dorsey
ifer A. Dorsey
r
United States District Judge
ed
Judge
ud
dg

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Id. at 875 (quoting 11 U.S.C. § 362(a)(1) & (3)).
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