TransFirst Group Inc et al v. Magliarditi et al

Filing 233

ORDER. IT IS ORDERED that this case is STAYED pending further proceedings in Dominic Magliarditi's bankruptcy case. IT IS FURTHER ORDERED that the contempt proceedings against defendant Francine Magliarditi are temporarily STAYED and the cont empt hearing set for 8/22/18 is VACATED. IT IS FURTHER ORDERED that 195 defendant Francine Magliarditi's motion for clarification is DENIED without prejudice. Signed by Judge Andrew P. Gordon on 7/31/2018. (Copies have been distributed pursuant to the NEF - ADR)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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4 TRANSFIRST GROUP, INC., et al.,

Case No. 2:17-cv-00487-APG-VCF

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7 DOMINIC J. MAGLIARDITI, et al.,

ORDER (1) STAYING CASE, (2)
TEMPORARILY STAYING CONTEMPT
PROCEEDINGS, AND (3) DENYING
WITHOUT PREJUDICE MOTION FOR
CLARIFICATION

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[ECF No. 195]

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Plaintiffs,
v.

Defendants.

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Given the bankruptcy filing of Dominic Magliarditi, this case is stayed pending further

11 order of this court or the bankruptcy court. While I could continue with contempt proceedings
12 against defendant Francine Magliarditi,1 I will temporarily stay those proceedings given the
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complexities arising from Dominic’s bankruptcy filing. Because the plaintiffs contend that all of
Francine’s property is really Dominic’s, it is possible that her property is property of the
bankruptcy estate. Indeed, I have previously ruled the plaintiffs are likely to succeed in making

17 that showing. If Francine’s property is property of the bankruptcy estate, that could affect the
18 range of contempt sanctions that I may consider against Francine. I therefore vacate the August
19 22, 2018 contempt hearing and temporarily stay the contempt proceedings.
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For similar reasons, I deny Francine’s request for clarification regarding the funds she
already paid her attorneys or funds she may try to use in the future to pay her attorneys. Funds
Francine already used or intends to use in the future may be property of the bankruptcy estate.
Those matters are now before the bankruptcy court. Should that court rule that the funds are not

25 part of the estate, and Francine seeks clarification from this court about the use of those funds, she
26 may file a new motion in this case.
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See ECF No. 215 at 2 (collecting cases).

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Although I am temporarily staying the contempt proceedings against Francine, my

2 preliminary injunction order remains in place. The bankruptcy filing does not negate my order nor
3 is it a license for anyone to violate it. As explained previously, the automatic stay does not bar
4 contempt proceedings against either the debtor or a non-debtor.
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IT IS THEREFORE ORDERED that this case is STAYED pending further proceedings in

6 Dominic Magliarditi’s bankruptcy case.
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IT IS FURTHER ORDERED that the contempt proceedings against defendant Francine

8 Magliarditi are temporarily STAYED and the contempt hearing set for August 22, 2018 is
9 VACATED.
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IT IS FURTHER ORDERED that defendant Francine Magliarditi’s motion for

11 clarification (ECF No. 195) is DENIED without prejudice.
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DATED this 31st day of July, 2018.

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_____________________________________
ANDREW P. GORDON
UNITED STATES DISTRICT JUDGE

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