Forbright Bank v. Contour PropCo 1735 S Mission, LLC
- Proceeding
- district
- Area
- civil
- Panel
- John A. Houston (author)
Analysis
Defendants filed a notice of bankruptcy and automatic stay, prompting the court to stay the matter pursuant to 11 U.S.C. § 362. The court ordered the case administratively closed until the automatic stay is lifted, with restoration to the trial docket upon motion by a party.
| What the court decided | The model |
|---|---|
Administrative closure of the case“In order to manage its docket, the Court HEREBY DIRECTS the Clerk of the Court to ADMINISTRATIVELY CLOSE this case until the automatic stay in the parallel bankruptcy proceeding is lifted.” | agree with court The decision follows from the filing of the bankruptcy petition and the automatic stay under 11 U.S.C. § 362. Administrative closure is a standard docket management tool used to remove stayed cases from the active trial docket while preserving the court's jurisdiction and the parties' rights. The order explicitly states that the closure does not prejudice the parties' rights and provides a mechanism for restoration. |
The order itself: sound — The order is a standard procedural action. It correctly identifies the basis for the stay (11 U.S.C. § 362) and cites a recent Ninth Circuit case supporting administrative closure for docket management. The reasoning is sufficient for a procedural order of this nature.
Opinion
1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 FORBRIGHT BANK f/k/a Congressional Case No.: 23-cv-00931-JAH-NLS Bank, a Maryland chartered bank, 12 ORDER ADMINISTRATIVELY Plaintiff, 13 CLOSING CASE v. 14 CONTOUR PROPCO 1735 S MISSION, 15 LLC, a Delaware limited liability 16 company, CONTOUR OPCO 1735 S MISSION, LLC, a Delaware limited 17 liability company, UMB BANK, N.A., a 18 national banking association, ZB, N.A. D/B/A NATIONAL BANK OF 19 ARIZONA, a national banking 20 association, PRO-VIGIL, INC., a Texas corporation, and DOES 1-12, the last 21 twelve names being fictitious and 22 unknown to Plaintiff, the persons or parties intended being the tenants, 23 occupants, persons, or entities, if any, 24 having or claiming an interest in or lien upon the mortgaged premises described in 25 the complaint, 26 Defendants. 27 28 1 On May 24, 2023, Defendants Contour PropCo 1735 S Mission, LLC, a Delaware 2 limited liability company, and Contour OpCo 1735 S Mission, LLC’s (collectively, 3 || “Defendants’’) filed a notice of bankruptcy and automatic stay based upon the filing of the 4 || bankruptcy petition in the United States Bankruptcy Court for the District of Nevada. (ECF 5 10). The Court stayed the matter pursuant to 11 U.S.C. § 362. (ECF No. 12). In order 6 ||to manage its docket, the Court HEREBY DIRECTS the Clerk of the Court to 7 || ADMINISTRATIVELY CLOSE this case until the automatic stay in the parallel 8 || bankruptcy proceeding is lifted. See Sarkar v. Garland, 39 F.4th 611, 618 (9th Cir. 2022). 9 ||The case shall be restored to the trial docket upon motion of a party following the 10 termination or expiration of the Bankruptcy Court's automatic stay to allow this action to 11 ||proceed to disposition. This Order shall not prejudice the rights of the parties to this 12 || litigation in any manner. 13 IT ISSO ORDERED. 14 || DATED: August 28, 2024 16 JOHN A. HOUSTON UNITED STATES DISTRICT JUDGE 17 18 19 20 21 22 23 24 25 26 27 28