Jones v. County of Fresno

United States District Court for the Eastern District of California

Jones v. County of Fresno

Trial Court Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 ANNA M. JONES, individually and as Case No. 1:23-cv-01636-KES-HBK representative of the estate of and heir of 12 Robert Wayne Jones, ORDER STAYING CASE IN ITS ENTIRETY 13 Plaintiff, (Doc. No. 38) 14 v. 15 COUNTY OF FRESNO, UNKNOWN FRESNO COUNTY CORRECTIONAL 16 OFFICERS, WELLPATH, UNKNOWN MENTAL HEALTH PROVIDERS, 17 UNKNOWN MEDICAL PROVIDERS, 18 Defendants. 19 20 This matter comes before the Court upon the parties’ joint status report incorporating 21 therein a request that the case be stayed in its entirety because of Defendant Wellpath, LLC’s 22 (“Wellpath”) pending bankruptcy proceeding. (Doc. No. 38). The Court grants the requested 23 relief. 24 On November 15, 2024, Defendant Wellpath filed a “Suggestion of Bankruptcy and 25 Notice of Stay,” in this action advising that, on November 11, 2023, Wellpath filed a voluntary 26 petition for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) 27 in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. 28 (Doc. No. 36). Defendant Wellpath also asked that the Court take notice of the automatic stay 1 and stay all further action in this matter as to all parties. (Id.). On November 22, 2024, the Court 2 granted Defendant Wellpath’s motion to stay only as to Defendant Wellpath, and ordered the 3 remaining parties to file a status report indicating whether the matter should be stayed in its 4 entirety, proceed under the deadlines in the case management scheduling order, or set for early 5 settlement conference. (Doc. No. 37). On December 4, 2024, the parties filed a joint status report 6 requesting that the Court stay the entire matter and vacate all deadlines in light of the November 7 12, 2024 Amended Interim Order Enforcing the Automatic Stay entered by the United States 8 Bankruptcy Court for the Southern District of Texas, Houston Division, which ordered that 9 “Lawsuits are stayed in their entirety, including the plaintiff’s claims against the Non-Debtor 10 Defendants, on an interim basis pursuant to section 62 of the Bankruptcy Code.” (Doc. No. 36- 11 2). 12 “As a general rule, the automatic stay of section 362(a) protects only the debtor, property 13 of the debtor or property of the estate. It does not protect non-debtor parties or their property.” In 14 re Chugach Forest Prods., Inc.,

23 F.3d 241

, 246 (9th Cir. 1994). Moreover, the district court 15 lacks jurisdiction to extend the automatic stay to non-debtor Defendants; rather, “[i]n order to 16 apply the automatic stay outlined in

11 U.S.C. § 362

to a non-debtor party, the bankruptcy court 17 must issue an extension of the stay under its jurisdiction.” See Placido v. Prudential Ins. Co. of 18 America,

2010 WL 334744

(N.D. Cal. Jan. 22, 2010) (citing Boucher v. Shaw,

572 F.3d 1087

, 19 1093 (9th Cir. 2009)). Here, the automatic stay under section 362(a) would generally apply only 20 to claims against Defendant Wellpath and would not extend to Plaintiff’s claims against the non- 21 debtor Defendants. However, as acknowledged by the parties, the Bankruptcy Court entered an 22 Amended Interim Order Enforcing the Automatic Stay, including direction that lawsuits be 23 “stayed in their entirety, including the plaintiffs’ claims against the Non-Debtor Defendants,” on 24 an interim basis. (Doc. No. 36-2). Thus, the parties agree this matter should be stayed in its 25 entirety and all deadlines vacated until the interim stay is lifted whether by Final Order of the 26 Bankruptcy Court or further action taken by a party to lift the interim stay.1 27 1 The Court notes that nothing in this Order or the Amended Interim Order entered by the 28 Bankruptcy Court prevents Plaintiff from prosecuting her case to the extent possible, including 1 Accordingly, it is ORDERED: 2 1. The Court grants the requested relief (Doc. No. 38) and STAYS this action pending 3 further Order by this Court and vacates all hearing dates and deadlines. 4 2. Upon lifting of the extension of the automatic stay as to non-debtor Defendants, 5 including upon Final Order by the Bankruptcy Court or further action taken by any 6 party, the parties shall promptly file a joint status report with the Court. 7 | Dated: _ December 16, 2024 Mihaw. □□□ foareA Zacks 9 HELENA M. BARCH-KUCHTA 10 UNITED STATES MAGISTRATE JUDGE

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ||§_ filing objections to the Amended Interim Order before the Bankruptcy Court enter a Final Order 28 | (See Doc. No. 36-2 at 2), or filing a motion to lift the automatic stay as to this matter.

Reference

Status
Unknown