Coulter Ventures, LLC v. Tru Grit Fitness LLC
- Proceeding
- district
- Area
- civil
- Panel
- Cynthia Ann Bashant (author)
Analysis
The court reviewed the defendant's notification that it had filed for Chapter 11 bankruptcy. The court stayed the action in its entirety and ordered the defendant to provide status updates every six months.
| What the court decided | The model |
|---|---|
Stay of action pending resolution of bankruptcy proceedings“Good cause appearing, the Court STAYS this action in its entirety.” | agree with court The decision follows from 11 U.S.C. § 362(a), which mandates an automatic stay of judicial actions against a debtor upon the filing of a bankruptcy petition. The court correctly identified the applicable statute and the existence of the bankruptcy case. |
Order requiring defendant to file notice of bankruptcy status every six months“The Court ORDERS Defendant to file notice in this matter every six (6) months informing the Court of the status of the bankruptcy proceedings.” | agree with court This is a standard procedural mechanism to ensure the court can lift the stay if the bankruptcy proceedings conclude or if the stay is no longer necessary. It is a reasonable exercise of the court's management authority. |
The order itself: sound — The order correctly applies the automatic stay provision of the Bankruptcy Code. It cites the relevant statute and a Ninth Circuit case supporting the application of the stay. The procedural order for status updates is standard and appropriate.
Opinion
1 2 3 4 5 6 8 IN THE UNITED STATES DISTRICT COURT 9 FOR THE SOUTHERN DISTRICT OF CALIFORNIA 10 COULTER VENTURES, LLC, Case No. 3:22-cv-01005-BAS-BGS 11 12 Plaintiff, ORDER STAYING ACTION PENDING RESOLUTION OF 13 v. BANKRUPTCY PROCEEDINGS 14 (ECF NO. 32) TRU GRIT FITNESS LLC, 15 16 Defendant. 17 18 19 Presently before the Court is Defendant’s Notification of Bankruptcy. (ECF No. 20 32.) Defendant Tru Grit Fitness, LLC is subject to a Chapter 11 bankruptcy case in the 21 United States Bankruptcy Court for the District of Nevada in the bankruptcy of In re: 22 Tru Grit Fitness LLC (Case No. BK-22-14320-ABL). (Id.) Pursuant to 11 U.S.C. 23 § 362(a), the filing of a bankruptcy petition automatically stays a judicial action against 24 the debtor. See Gruntz v. Cnty. of Los Angeles, 202 F.3d 1074, 1081–82 (9th Cir. 2000) 25 (en banc). Good cause appearing, the Court STAYS this action in its entirety. The 26 Court ORDERS Defendant to file notice in this matter every six (6) months informing 27 28 the Court of the status of the bankruptcy proceedings. IT IS SO ORDERED.
4 DATED: March 2, 2023 /) ) 5 Ypilag (Lyshank □ 6 United States District Judge 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2.