Filed: Mar. 18, 2019
Latest Update: Mar. 18, 2019
Summary: DIRECTIVE TO THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF HAWAI`I ALAN C. KAY , Senior District Judge . On May 21, 2018, the bankruptcy court issued its Memorandum of Decision on Motions for Relief from Stay and Barton Doctrine and for Sanctions ("Memorandum of Decision"). Bankr. Case No. 14-01520, Dkt. No. 300. The bankruptcy court denied Plaintiff Chad Barry Barnes's ("Plaintiff Barnes") request for the bankruptcy court to lift the automatic stay of in personam claims against
Summary: DIRECTIVE TO THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF HAWAI`I ALAN C. KAY , Senior District Judge . On May 21, 2018, the bankruptcy court issued its Memorandum of Decision on Motions for Relief from Stay and Barton Doctrine and for Sanctions ("Memorandum of Decision"). Bankr. Case No. 14-01520, Dkt. No. 300. The bankruptcy court denied Plaintiff Chad Barry Barnes's ("Plaintiff Barnes") request for the bankruptcy court to lift the automatic stay of in personam claims against ..
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DIRECTIVE TO THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF HAWAI`I
ALAN C. KAY, Senior District Judge.
On May 21, 2018, the bankruptcy court issued its Memorandum of Decision on Motions for Relief from Stay and Barton Doctrine and for Sanctions ("Memorandum of Decision"). Bankr. Case No. 14-01520, Dkt. No. 300. The bankruptcy court denied Plaintiff Chad Barry Barnes's ("Plaintiff Barnes") request for the bankruptcy court to lift the automatic stay of in personam claims against Defendant Kris Henry ("Defendant Henry") for several reasons, including that Plaintiff Barnes committed a procedural error by filing his motion to lift the stay in Defendant Sea Hawai`i Rafting, LLC's ("Defendant SHR") bankruptcy case and not in Defendant Henry's bankruptcy case. See Memorandum of Decision at p. 13; Bankr. Case No. 14-01475.
On May 21, 2018, Plaintiff Barnes appealed the bankruptcy court's Memorandum of Decision. Bankr. Case No. 14-01520, Dkt. No. 301. The appeal was docketed in the district court as Civ. No. 18-00199 JMS-RLP. On March 7, 2019, Chief Judge Seabright issued an Order Dismissing Appeal in Part, and Affirming May 22, 2018 Decision of Bankruptcy Court in Part. Civ. No. 18-00199 JMS-RLP, ECF No. 24. Chief Judge Seabright ruled that the "[i]ssues regarding in personam claims against Kris Henry and/or his bankruptcy estate are not properly before the court in this appeal—that is, the current proceeding is limited to an appeal from a decision in In re Sea Hawaii Rafting, LLC, Bankr. Case No. 14-01520, not in In re Kristin Kimo Henry, Bankr. Case No. 14-01475." Id. at p. 3.
In light of the foregoing, the Court requests clarification of the Memorandum of Decision regarding whether, at this time, the automatic stay still bars Plaintiff Barnes from prosecuting unsecured in personam claims against Defendant Henry. The Court notes that Plaintiff Barnes seeks to pierce the corporate veil and hold Defendant Henry personally liable for Defendant SHR's maintenance and cure obligations,1 as well as pursue other tort claims against Defendant Henry. The Court also notes that it appears claims for maintenance and cure may be exempt from the automatic stay imposed by the Bankruptcy Code. See In re Sea Ray Marine Servs., Inc., 105 B.R. 12 (Bankr. E.D. La. 1989); see also In re Coltellaro, 204 B.R. 640 (Bankr. S.D. Fla. 1997).2
IT IS SO ORDERED.
