SYKES, Circuit Judge.
Melvin Kimbrell, a citizen of Illinois, brought personal-injury claims against Kary Brown and Brown's employer, Koetter Woodworking, Inc., citizens of Indiana. After Brown notified the district court that he had filed for Chapter 13 bankruptcy, the district court stayed the case as to Brown, as required by the Bankruptcy Code. The district court then dismissed Kimbrell's claims against Koetter Wood-working with prejudice, finding that Kimbrell failed to exercise reasonable diligence in serving process under Illinois Supreme Court Rule 103(b).
Kimbrell appealed the district court's dismissal of his claims against Koetter Woodworking. We dismiss the appeal for lack of jurisdiction. The dismissal of Kimbrell's claims against Koetter Woodworking was not a final judgment because Kimbrell continues to seek adjudication of his claims against Brown.
In October 2006 on a road in St. Clair County, Illinois, a tractor-trailer that Kary Brown was driving for Koetter Woodworking collided with a car in which Melvin Kimbrell was a passenger, causing physical injuries to Kimbrell. In October 2008, shortly before the two-year statute of limitations was to expire, see 735 ILL. COMP. STAT. 5/13-202 (2011), Kimbrell filed personal-injury claims in Illinois state court against Brown and Koetter Woodworking. Kimbrell did not serve process on the defendants until eight months later in June 2009. The defendants removed the case to the Southern District of Illinois based on diversity jurisdiction. Brown then informed the district court that he had filed for Chapter 13 bankruptcy in February 2008. The district court stayed the case as to Brown pursuant to 11 U.S.C. § 362(a)(1), the provision of the Bankruptcy Code that mandates a stay of any proceeding against a bankruptcy petitioner for claims arising out of prepetition events. Koetter Woodworking, on the other hand, moved to dismiss Kimbrell's complaint for failure to exercise reasonable diligence in serving process under Illinois Supreme Court Rule 103(b). The district court noted that Illinois law "does not carry bright lines or finite deadlines" for serving process after filing a complaint. Kimbrell v. Brown, No. 09-cv-511-JPG, 2009 WL 5064384, at *3, 2009 U.S. Dist. LEXIS 118901, at *11 (S.D.Ill. Dec. 17, 2009). Instead, it calls for plaintiffs to "exercise reasonable diligence" in serving process, as measured by "the totality of the circumstances." ILL. S.CT. R. 103(b). After weighing the relevant circumstances, which we need not detail here, the district court granted the motion to dismiss. The district court never entered any judgment, however; the docket simply shows the case as "terminated" with respect to Koetter Woodworking, and no such entry appears for Brown.
Kimbrell appealed the district court's dismissal of his claims against Koetter Woodworking. We noted preliminarily that the district court's order of dismissal might not be a final appealable judgment and asked the parties to file memoranda on appellate jurisdiction. The parties did so, and we permitted the appeal to proceed but ordered the parties to more fully address appellate jurisdiction in their merits briefs.
Kimbrell contends that we have jurisdiction over his appeal because the district court's dismissal of his claims as to Koetter Woodworking was an appealable
This case raises the question whether a district court's dismissal of claims against one defendant constitutes a final judgment when in the same case, the plaintiff's claims against another defendant were automatically stayed under 11 U.S.C. § 362(a)(1). Under this provision of the Bankruptcy Code, a petition for bankruptcy
Id. The automatic stay "is designed to protect debtors from all collection efforts while they attempt to regain their financial footing." In re Schwartz, 954 F.2d 569, 571 (9th Cir.1992); see also Easley v. Pettibone Mich. Corp., 990 F.2d 905, 910 (6th Cir. 1993). By halting litigation against the debtor, the stay "gives the debtor a breathing spell from his creditors. It stops all collection efforts, all harassment, and all foreclosure actions. It permits the debtor to attempt a repayment or reorganization plan, or simply to be relieved of the financial pressures that drove him into bankruptcy." H.R.REP. NO. 95-595, at 340 (1978), reprinted in 1978 U.S.C.C.A.N. 5963, 6296-97.
Kimbrell maintains that his lawsuit against Brown was void ab initio because it was filed during the pendency of Brown's bankruptcy petition in violation of the automatic-stay provision. Therefore, his argument goes, the only "true" defendant in the case was Koetter Woodworking, so the district court's order dismissing the claims against that defendant disposed of all claims against all "true" parties and is therefore a final appealable judgment.
Kimbrell may or may not be correct that his lawsuit against Brown was void ab initio. We have recognized that there is a "debate among the circuits over whether [actions filed in violation of the automatic stay] are void or merely voidable." Middle Tenn. News. Co., Inc. v. Charnel of Cincinnati, Inc., 250 F.3d 1077, 1082 n.6 (7th Cir.2001). We have had "no occasion to ... forage into the debate," id., and this case doesn't present an opportunity to do so. Even assuming that Kimbrell's suit as to Brown was "void ab initio" in the sense that other courts have used this term to describe actions filed in violation of the automatic stay, the Bankruptcy Code allows for later adjudication of such suits, which precludes finality under the circumstances presented here.
The Code gives the bankruptcy court broad authority to grant relief from the automatic stay "such as by terminating, annulling, modifying, or conditioning" the stay in various enumerated circumstances. 11 U.S.C. § 362(d). As an example of the operation of this rule, in Sikes v. Global Marine, Inc., 881 F.2d 176, 177 (5th Cir. 1989), the plaintiffs, like Kimbrell here, filed a complaint against a defendant that
In addition, under 11 U.S.C. § 108(c), when a plaintiff receives notice that a defendant's automatic stay has been terminated, he may pursue a claim against that defendant within 30 days of receiving such notice, even if the applicable statute of limitations expired during the stay.
Kimbrell appears to have used the bankruptcy stay to engage in procedural maneuvering in contravention of the final-judgment rule. He has taken contradictory positions here and in the district court about whether his claim against Brown remains alive. At oral argument we pressed Kimbrell's counsel about the inconsistency of his positions, and he was unable to offer any explanation:
Our own research has since revealed that, in fact, Brown's bankruptcy stay was lifted several weeks before the oral argument in this court,
This maneuvering brings to mind the equitable principle of judicial estoppel, which precludes litigants from "deliberately changing positions according to the exigencies of the moment," New Hampshire v. Maine, 532 U.S. 742, 749-50, 121 S.Ct. 1808, 149 L.Ed.2d 968 (2001) (quotation marks omitted), thereby "prevailing in one phase of a case on an argument and then relying on a contradictory argument to prevail in another phase," In re Airadigm Commc'ns, Inc., 616 F.3d 642, 662 (7th Cir.2010) (quotation marks omitted). Strictly speaking, Kimbrell's case does not meet the requirements for invoking judicial estoppel. See Pakovich v. Broadspire Servs., 535 F.3d 601, 606 (7th Cir.2008) ("[O]ne of the requirements for judicial estoppel to apply is that the party to be estopped must have prevailed upon the first court to adopt the position." (emphasis added) (quotation marks omitted)). Even so, this kind of gamesmanship — arguing to this court that the dismissal of his claims against Koetter Woodworking should be treated as a final judgment while continuing to pursue his claims against Brown in the district court — confirms why we cannot adjudicate this appeal on the merits. When a case is pending in both the district court and this court at the same time, posing jurisdictional issues, we expect counsel on appeal and in the district court to communicate with each other and with the respective courts about material developments. It simply is not acceptable for appellate counsel to remain ignorant — or to claim ignorance — of his client's activities in the district court and state courts.
In Arrow Gear Co. v. Downers Grove Sanitary District, 629 F.3d 633, 636-37 (7th Cir.2010), we confronted an appeal in an analogous procedural posture and explained why it was problematic. The plaintiff, Arrow Gear, sued multiple defendants. As to all but two of the defendants, the district court dismissed Arrow's claims as barred by res judicata. Id. at 636. With respect to those two remaining defendants, Arrow took a voluntary dismissal without prejudice and then attempted to appeal the district court's dismissal as to the other defendants. Id. Arrow's voluntary dismissal of the two defendants left open the possibility for Arrow to later
The bottom line is that Kimbrell's case remains "open," "unfinished," and "inconclusive" in the district court, so there was no final judgment. Wingerter, 185 F.3d at 661. He has tried to "start over" with his claims against Brown and could later return to us with another appeal after the resolution of those claims. See Arrow Gear, 629 F.3d at 636-37. The final-judgment rule requires "combin[ing] in one review all stages of [a] proceeding." Wingerter, 185 F.3d at 662.
We note that in Robison v. Canterbury Village, Inc., 848 F.2d 424 (3d Cir.1988), a similar case involving two defendants, one of whom filed for bankruptcy, the district court issued a certification under Rule 54(b) of the Federal Rules of Civil Procedure that its dismissal of the claims against the noninsolvent defendant constituted a final judgment despite the pending stay against the insolvent defendant.
For the foregoing reasons, we DISMISS Kimbrell's appeal for lack of jurisdiction.