BERRY v. KIOR, INC., H-13-02443. (2014)
Court: District Court, S.D. Texas
Number: infdco20141117b52
Visitors: 11
Filed: Nov. 14, 2014
Latest Update: Nov. 14, 2014
Summary: ORDER LEE H. ROSENTHAL, District Judge. Defendant KiOR, Inc. filed a petition in the United States Bankruptcy Court for the District of Delaware as Case No. 14-12514 on November 9, 2014. A petition filed under 11 U.S.C. 301, et seq., operates as a stay of a judicial proceeding against the debtor that was commenced before the bankruptcy proceeding. 11 U.S.C. 362(a)(1). The claims against KiOR are stayed. The plaintiff may reinstate these claims to the active docket on notice to this cour
Summary: ORDER LEE H. ROSENTHAL, District Judge. Defendant KiOR, Inc. filed a petition in the United States Bankruptcy Court for the District of Delaware as Case No. 14-12514 on November 9, 2014. A petition filed under 11 U.S.C. 301, et seq., operates as a stay of a judicial proceeding against the debtor that was commenced before the bankruptcy proceeding. 11 U.S.C. 362(a)(1). The claims against KiOR are stayed. The plaintiff may reinstate these claims to the active docket on notice to this court..
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ORDER
LEE H. ROSENTHAL, District Judge.
Defendant KiOR, Inc. filed a petition in the United States Bankruptcy Court for the District of Delaware as Case No. 14-12514 on November 9, 2014. A petition filed under 11 U.S.C. §§ 301, et seq., operates as a stay of a judicial proceeding against the debtor that was commenced before the bankruptcy proceeding. 11 U.S.C. § 362(a)(1). The claims against KiOR are stayed. The plaintiff may reinstate these claims to the active docket on notice to this court of the discontinuance of the stay under 11 U.S.C. § 362(c)(2), provided the notice is filed within 14 days after the bankruptcy stay is discontinued.
While "[s]ection 362 is rarely ... a valid basis on which to stay actions against non-debtors." Arnold v. Garlock, Inc., 278 F.3d 426, 436 (5th Cir. 2001), "an exception to this general rule does exist, and a bankruptcy court may invoke § 362 to stay proceedings against nonbankrupt codefendants if, for example, "there is such identity between the debtor and the third-party defendant that the debtor may be said to be the real party defendant and that a judgment against the third-party defendant will in effect be a judgment or finding against the debtor." Reliant Energy Services, Inc. v. Enron Canada Corp., 349 F.3d 816 (5th Cir. 2003). No later than November 24, 2014, the parties must file a statement explaining the impact of the stay on the claims against the individual defendants.
Source: Leagle
