PHILIP A. BRIMMER, District Judge.
This matter is before the Court on the Moving Defendants' Emergency Motion for an Order that an Automatic Stay Under Bankruptcy Code Section 362 Does Not Apply to This Interpleader Action [Docket No. 29] filed by defendants Mesh Suture Inc. ("Mesh Suture"), Randa Dumanian, Gregory A. Dumanian, and Adom Dumanian (the "Dumanians") (together, the "moving defendants"). Defendant Mark A. Schwartz ("Schwartz") filed a response opposing the motion. Docket No. 33. Plaintiff Wells Fargo Bank, N.A. ("Wells Fargo") has not filed a response.
This interpleader action arises out of a dispute as to who controls Mesh Suture's bank account at Wells Fargo (the "Mesh Suture bank account") — Schwartz or the Dumanians. Docket No. 1 at 1-2, ¶¶ 1-2. The relevant facts, as alleged in the interpleader complaint, are that "a dispute over control of Mesh Suture developed" between Schwartz and the Dumanians in August of 2019. Id. at 4, ¶ 17. On or about August 31, 2019, the Dumanians purported to fire Schwartz from his role as Mesh Suture's chief executive officer and replace him with Randa Dumanian. Id., ¶ 20. On or about September 3, 2019, Schwartz transferred the entire balance of the Mesh Suture bank account into an account held by a limited liability company controlled by Schwartz. Id., ¶¶ 21-22. On or about September 6, 2019, Schwartz transferred the same amount back into the Mesh Suture bank account from an account held by a limited liability partnership controlled by Schwartz. Id. at 4-5, ¶¶ 23-24. Wells Fargo subsequently restricted access to the Mesh Suture bank account, permitting payments only where Schwartz and the Dumanians jointly agreed that the payments were necessary. Id. at 5, ¶¶ 25-29. The Mesh Suture bank account's current balance is $3,363,839.40. Id., ¶ 30.
On November 13, 2019, Wells Fargo filed this interpleader action. Docket No. 1. Wells Fargo seeks to interplead the funds in the Mesh Suture bank account into the Registry of the Court in order for Mesh Suture, the Dumanians, and Schwartz to make their legal claims to the funds. Id. at 5, ¶ 32. The moving defendants filed an answer (with the Dumanians purporting to have authority to act on behalf of Mesh Suture) on November 19, 2019. Docket No. 9. Schwartz did not file an answer or other responsive pleading; the deadline to do so expired on January 9, 2020.
On November 23, 2019, the moving defendants (save Adom Dumanian) filed an "emergency motion" to appoint a receiver for the Mesh Suture bank account during the pendency of this interpleader action. Docket No. 11. The emergency motion argues that a receiver is necessary to pay Mesh Suture invoices from the Mesh Suture bank account while this action is pending. Id. at 9. Schwartz did not file a response to the motion. The motion is currently pending before Magistrate Judge Gordon P. Gallagher and a hearing on the motion is set for January 31, 2020. Docket Nos. 25, 27.
On January 10, 2020, the moving defendants filed the instant motion. The moving defendants represent that, on January 9, 2020, Schwartz filed a Chapter 11 bankruptcy petition on behalf of Mesh Suture in the United States Bankruptcy Court for the District of Puerto Rico (the "Puerto Rico bankruptcy case"). Docket No. 29 at 2; see also Docket No. 29-1 (bankruptcy petition). The moving defendants further represent that Schwartz's counsel in Puerto Rico sent a letter to Wells Fargo representing that (1) this action is automatically stayed pursuant to 11 U.S.C. § 362 and (2) as a result of the automatic stay, Wells Fargo must transfer the funds in the Mesh Suture bank account to a new bank account at Banco Santander de Puerto Rico. Id. at 2-3; see also Docket No. 29-2 (letter to Wells Fargo). The moving defendants request that the Court issue an order that (1) declares that the automatic stay does not apply to this action and (2) directs Wells Fargo to maintain control of the funds in the Mesh Suture bank account pending further order of the Court. Id. at 8.
On January 16, 2020, Schwartz filed a response to the motion. Docket No. 33. Schwartz argues that (1) the interpleader action should be dismissed for lack of diversity jurisdiction because the claimants are all citizens of Puerto Rico, (2) the Court does not have jurisdiction to hear the instant motion because the Bankruptcy Court in Puerto Rico has exclusive jurisdiction to grant relief from the automatic stay, and (3) the automatic stay should remain in place until the Bankruptcy Court in Puerto Rico decides how to proceed. Id. On January 17, 2020, Zabelle Crosson ("Crosson"), who serves on the Mesh Suture Board of Directors, moved to intervene in this case. Docket No. 35. That motion is also pending before the magistrate judge. Docket No. 36. Crosson has filed a notice joining the instant motion pending her intervention in the case. Docket No. 37.
Before turning to the merits of the instant motion, the Court considers Schwartz's argument that the entire action must be dismissed for lack of subject matter jurisdiction.
Wells Fargo brings this interpleader action pursuant to 28 U.S.C. § 1335, which requires "[t]wo or more adverse claimants, of diverse citizenship" in order for the district court to have jurisdiction. This provision requires only "minimal diversity" — "diversity of citizenship between two or more claimants." State Farm Fire & Cas. Co. v. Tashire, 386 U.S. 523, 531 (1967). The interpleader complaint alleges that Mesh Suture is a citizen of Puerto Rico, that Schwartz is a "resident" of Colorado, and that the Dumanians are citizens of Illinois. Docket No. 1 at 2, ¶¶ 6-10. Schwartz argues that he and the Dumanians are, in fact, citizens of Puerto Rico; thus, all of the claimants are citizens of Puerto Rico and there is no diversity of citizenship.
The Dumanians have not responded to Schwartz's jurisdictional allegations. At this stage, the Court determines that the issue of whether the Court has subject matter jurisdiction is not ripe for decision. See 5B Arthur R. Miller et al., Fed. Prac. & Proc. § 1350 (3d ed. Aug. 2019 update) ("The district court may postpone a decision on the question of subject matter jurisdiction . . . if [affidavits and other evidence] that have been offered by the parties are inconclusive.").
The Court turns to the moving defendants' argument that this case is not subject to the automatic stay arising out of the Puerto Rico bankruptcy case. The Court has jurisdiction to decide whether the automatic stay applies to this case. Amoco Pipeline Co. v. Admiral Crude Oil Corp., 490 F.2d 114, 116 (10th Cir. 1974) (holding that interpleader court "had jurisdiction to decide whether the case [was] properly before it" (internal quotations and citations omitted)).
The filing of a bankruptcy petition operates as an automatic stay of, among other things, "any act to obtain possession of property of the estate or of property from the estate or to exercise control over property of the estate." 11 U.S.C. § 362(a)(3). The purpose of the automatic stay is to "ensure[] that the debtor's assets can be distributed in an orderly fashion, thus preserving the interests of the creditors as a group." In re Johnson, 575 F.3d 1079, 1083 (10th Cir. 2009) (quoting Price v. Rochford, 947 F.2d 829, 831 (7th Cir. 1991)).
The Court is not persuaded that the automatic stay applies to this interpleader action. In National Cooperative Refinery Ass'n v. Rouse, 60 B.R. 857 (D. Colo. 1986), another court in this district determined that the automatic stay did not apply to an interpleader action. The court reasoned that, because the purpose of the interpleader action was to determine who had title to the interpleaded res, the res was not the "property of the estate" of the debtor under § 362(a). Id. at 860. Similarly, here the purpose of the automatic stay is to determine which claimant has the right to the funds contained in the Mesh Suture account. It does not "have the object of `obtaining possession of property of the estate.'" Holland America Ins. Co. v. Succession of Roy, 777 F.2d 992, 996 (5th Cir. 1985) (quoting 11 U.S.C. § 362(a)(3)). Instead, the purpose of this action is "to provide an orderly forum for resolution of conflicting claims to [the Mesh Suture bank account]." Id.; see also Shell Pipe Line Corp. v. West Tex. Marketing Corp., 540 F.Supp. 1155, 1161 (S.D. Tex. 1982) (noting the absence of any authority "in which an interpleader action, naming a debtor as a claimant, has been construed as the assertion of a claim against the debtor or against his property").
For the foregoing reasons, it is