SUSAN C. BUCKLEW, District Judge.
This cause comes before the Court on two motions: (1) Wal-Mart Stores East, L.P.'s Motion to Stay (Doc. No. 19), which Plaintiff opposes (Doc. No. 24); and (2) Wal-Mart Stores East, L.P.'s Motion to Seal Exhibit B (relating to the motion to stay) (Doc. No. 20). As explained below, both motions are denied.
Plaintiff alleges the following in his complaint (Doc. No. 1): Plaintiff's sister bought a gas storage container manufactured by defendant Blitz USA, Inc. and sold by defendant Wal-Mart. On October 11, 2009, the gas storage container exploded while Plaintiff was filling the gas tank in his lawn mower, which caused him to suffer severe burns. Thereafter, on November 10, 2011, he filed the instant lawsuit, in which he originally asserted claims against twelve defendants: Blitz, USA, Inc., LAM 2011 Holdings, LLC, Blitz Acquisition Holdings, Inc., Blitz Acquisition, LLC, Blitz RE Holdings, F3 Brands, LLC., Kinderhook Industries, LLC, and Kinderhook Capital Fund II, LP (collectively referred to as "Blitz"); Wal-Mart Stores, Inc., Wal-Mart Stores East, Inc., and Wal-Mart Stores East, L.P. (collectively referred to as "Wal-Mart"); and Discovery Plastics, LLC.
Plaintiff asserted five claims against Blitz USA, Inc.: (1) strict liability, (2) negligence, (3) breach of warranty, (4) piercing the corporate veil (which was asserted against all of the Blitz defendants), and (5) fraudulent transfer (which was asserted against all of the Blitz defendants). Additionally, Plaintiff asserted three claims against Wal-Mart: (1) strict liability, (2) negligence, and (3) breach of warranty. Finally, Plaintiff asserted two claims against Discovery Plastics (the manufacturer of the cap for the gasoline storage container): (1) manufacturing defects and (2) negligence.
However, a day before this lawsuit was filed, six defendants filed for bankruptcy—Blitz, USA, Inc., LAM 2011 Holdings, LLC, Blitz Acquisition Holdings, Inc., Blitz Acquisition, LLC, Blitz RE Holdings, and F3 Brands, LLC. As a result, the case was automatically stayed against those defendants. Plaintiff chose to voluntarily dismiss the claims against the six defendants that filed for bankruptcy, as well the claims against defendants Kinderhook Industries, LLC and Kinderhook Capital Fund II, LP. Thus, Plaintiff's claims remain only as to Wal-Mart and Discovery Plastics.
During a hearing before the bankruptcy court in the Blitz entities' bankruptcy proceedings,
Wal-Mart argues that the claims against it should be stayed due to the identity of interests between Wal-Mart and Blitz.
Upon consideration, the Court finds that the issue of whether the claims against Wal-Mart should be stayed due to their effect on Blitz's bankruptcy and reorganization would be best handled by the bankruptcy court, because the bankruptcy court is in the best position to analyze the issue.
Alternatively, Wal-Mart urges this Court to exercise its discretion to stay this case in the interest of judicial economy. The Court, however, is not persuaded that a stay is necessary.
Accordingly, it is ORDERED AND ADJUDGED that:
(1) Wal-Mart Stores East, L.P.'s Motion to Stay (Doc. No. 19) is
(2) Wal-Mart Stores East, L.P.'s Motion to Seal Exhibit B (Doc. No. 20) is