Chatham Steel Corporation v. Mitchell Welding, Inc. et al

Filing 37

ORDER that this action is hereby STAYED as to the Defendants John C. Stout and Clarann Stout Dixon only until further Order of the Court. All other claims pending in this action remain unaffected by this stay re 36 Suggestion of Bankruptcy. Signed by District Judge Martin Reidinger on 08/24/2016. (thh)

THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
ASHEVILLE DIVISION
CIVIL CASE NO. 1:15-cv-00083-MR-DCK

CHATHAM STEEL CORP., a Foreign )
Corporation,
)
)
Plaintiff,
)
)
vs.
)
)
MITCHELL WELDING, INC., a North )
Carolina Corporation, JOHN C.
)
STOUT, an individual, and CLARANN )
STOUT DIXON, an individual,
)
)
Defendants.
)
_______________________________ )

ORDER

THIS MATTER is before the Court on the Defendants’ Suggestion of
Bankruptcy [Doc. 36].
The Defendants John C. Stout and Clarann Stout Dixon (now known
as Clarann Stout Vance) have filed a notice with the Court indicating that
they filed voluntary bankruptcy petitions under Chapter 7 of the United States
Bankruptcy Code on August 2, 2016. It is well-settled that “[w]hen litigation
is pending against the debtor at the time a bankruptcy case is commenced,
the litigation is stayed automatically.” 3 Collier on Bankruptcy ¶ 362.03[3]
(16th ed. 2014); see also 11 U.S.C. § 362(a)(1) (providing that a bankruptcy

petition operates as an automatic stay of “the commencement or
continuation . . . of a judicial, administrative, or other action or proceeding
against the debtor”). Accordingly, the Court will consider this action stayed,
but only as to the Defendants John C. Stout and Clarann Stout Dixon.
Accordingly, IT IS, THEREFORE, ORDERED that this action is hereby
STAYED as to the Defendants John C. Stout and Clarann Stout Dixon only
until further Order of the Court. All other claims pending in this action remain
unaffected by this stay.
IT IS SO ORDERED.
Signed: August 24, 2016

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