First Bank v. Exodus et al

Filing 42

ORDER TO SHOW CAUSE: Accordingly, Plaintiff shall, no later than May 24, 2022, show cause why further proceedings in this matter should not be stayed pending the resolution of Defendant's bankruptcy petition, and why Plaintiff's 40 motion for attorney fees should not be stricken. Signed by U.S. District Judge David G. Estudillo. (SP)

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Case 3:21-cv-05412-DGE Document 42 Filed 05/10/22 Page 1 of 3 1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA 8 9 10 11 FIRST BANK, 12 v. 13 CASE NO. 3:21-cv-05412-DGE Plaintiff, ORDER TO SHOW CAUSE EXODUS, et al., 14 Defendant. 15 16 This matter comes before the Court on review of the Court record. On March 22, 2022, 17 this Court granted summary judgment in favor of Plaintiff and directed Plaintiff to submit a Bill 18 of Fees and Costs by April 5, 2022. (Dkt. No. 31.) Plaintiff submitted a motion for bill of costs 19 and several declarations on April 5, 2022. (Dkt. Nos. 33, 34, 35, and 36.) 20 On April 22, 2022, the Clerk’s Office taxed costs in the amount of $51,565.65 and, citing 21 the applicable local civil rule and federal statutes, directed Plaintiff to file a separate motion for 22 attorney fees. (Dkt. No. 39); Local Civil Rule 54(d)(5) (“A motion for attorney’s fees should not 23 24 ORDER TO SHOW CAUSE - 1 Case 3:21-cv-05412-DGE Document 42 Filed 05/10/22 Page 2 of 3 1 be included in the motion for costs to the clerk but should be directed to the court pursuant to 2 Fed. R. Civ. P. 54(d), which sets forth requirements for the timing and contents of the motion.”). 3 On April 22, 2022, Plaintiff filed a motion for $69,801.88 in attorney fees. (Dkt. No. 40.) 4 Plaintiff previously submitted documentation in support of its request for attorney fees incurred 5 in connection with collecting the debts owed by Defendants to First Bank. (Dkt. Nos. 33, 34, 6 and 35.) 7 On April 29, 2022, Defendants, pursuant to Local Civil Rule 3(h), filed a notice 8 informing the Court that Defendants Fred J. Hankins and F.J. Hankins Enterprises, Inc. recently 9 filed a Chapter 11 bankruptcy petition in the United States Bankruptcy Court for the District of 10 Oregon. (Dkt. No. 41.) Defendants filed the bankruptcy petition on April 26, 2022. 11 Under 11 U.S.C. § 362(a)(1), the filing of a bankruptcy petition automatically stays “the 12 commencement or continuation, including the issuance or employment of process, of a judicial, 13 administrative, or other action or proceeding against the debtor that was or could have been 14 commenced before the commencement of the case under this title, or to recover a claim against 15 the debtor that arose before the commencement of the case under this title.” Eskanos & Adler, 16 P.C. v. Leetien, 309 F3d 1210, 1213-14 (9th Cir. 2002). The Ninth Circuit has noted that the 17 statute is “unambiguous” and that “[t]he plain language of § 362(a)(1) prohibits the continuation 18 of judicial actions.” (Id.) 19 The United States Bankruptcy Code, and applicable precedent from the Ninth Circuit, 20 both appear to require an automatic stay of any further proceedings in this case, including 21 Plaintiff’s pending motion for attorney’s fees. 22 23 24 ORDER TO SHOW CAUSE - 2 Case 3:21-cv-05412-DGE Document 42 Filed 05/10/22 Page 3 of 3 1 Accordingly, Plaintiff shall, no later than May 24, 2022, show cause why further 2 proceedings in this matter should not be stayed pending the resolution of Defendant’s bankruptcy 3 petition, and why Plaintiff’s motion for attorney fees should not be stricken. 4 Dated this 10th day of May, 2022. 5 6 A David G. Estudillo United States District Judge 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ORDER TO SHOW CAUSE - 3

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