Filed: Jan. 23, 2019
Latest Update: Jan. 23, 2019
Summary: MEMORANDUM AND ORDER JOHN M. BODENHAUSEN , Magistrate Judge . This matter is before the Court on Defendants Elgin Meyer-Bioenergy Co., J.S. Meyer Engineering, P.C., and M & K Engineering Consultants, Inc.'s (collectively "Defendants") Suggestion of Bankruptcy (ECF No. 134), which the Court construes as a motion to stay these proceedings as to Defendant Thomas Elgin ("Elgin"). In the Suggestion of Bankruptcy, Defendants indicate that Elgin filed for Chapter 7 bankruptcy in the United State
Summary: MEMORANDUM AND ORDER JOHN M. BODENHAUSEN , Magistrate Judge . This matter is before the Court on Defendants Elgin Meyer-Bioenergy Co., J.S. Meyer Engineering, P.C., and M & K Engineering Consultants, Inc.'s (collectively "Defendants") Suggestion of Bankruptcy (ECF No. 134), which the Court construes as a motion to stay these proceedings as to Defendant Thomas Elgin ("Elgin"). In the Suggestion of Bankruptcy, Defendants indicate that Elgin filed for Chapter 7 bankruptcy in the United States..
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MEMORANDUM AND ORDER
JOHN M. BODENHAUSEN, Magistrate Judge.
This matter is before the Court on Defendants Elgin Meyer-Bioenergy Co., J.S. Meyer Engineering, P.C., and M & K Engineering Consultants, Inc.'s (collectively "Defendants") Suggestion of Bankruptcy (ECF No. 134), which the Court construes as a motion to stay these proceedings as to Defendant Thomas Elgin ("Elgin").
In the Suggestion of Bankruptcy, Defendants indicate that Elgin filed for Chapter 7 bankruptcy in the United States District Court, Eastern District of Missouri, Bankruptcy Division, Case No. 18-46227 on September 28, 2018.1
The Eighth Circuit follows the rule that an automatic stay under 11 U.S.C. § 362(a) "is not available to nonbankrupt codefendants, `even if they are in similar or factual nexus with the debtor[,]'" unless a case involves unusual circumstances. Croyden Assocs. v. Alleco, Inc., 969 F.2d 675, 677 (8th Cir. 1992); see e.g., Sav-A-Trip, Inc. v. Belfort, 164 F.3d 1137, 1139 (8th Cir. 1999) (holding that an automatic stay applicable to a defendant firm and one of its employees did not extend to nonbankrupt codefendants). An automatic bankruptcy stay pursuant to 11 U.S.C. § 362(a)(1) applies to actions initiated against a debtor. Brown v. Armstrong, 949 F.2d 1007, 1009-10 (8th Cir. 1991). Accordingly,
IT IS HEREBY ORDERED that the instant proceedings are stayed as to Defendant Thomas Elgin pending resolution of Defendant Thomas Elgin's bankruptcy until such time as the bankruptcy proceedings have been concluded or Court action is otherwise required.