Labadie v. Dancy

District Court, E.D. Michigan

Labadie v. Dancy

Trial Court Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

KIRK LABADIE,

Plaintiff, Case No. 2:23-cv-11960

v. Honorable Susan K. DeClercq United States District Judge GERALD DANCY, et al, Honorable Kimberly G. Altman Defendants. United States Magistrate Judge ___________________________________/

ORDER ADOPTING REPORT AND RECOMMENDATION (ECF No. 46) AND GRANTING DEFENDANT DR. ANGELA JOSEPH’S MOTION TO DISMISS (ECF No. 36)

On November 7, 2024, Magistrate Judge Kimberly G. Altman issued a report and recommendation (R&R) addressing Defendant Dr. Angela Joseph’s motion to dismiss. ECF No. 46. But 10 days later, Defendant Joseph filed a notice of automatic bankruptcy stay because her employer, Wellpath LLC, had filed for Chapter 11 bankruptcy. 1 See ECF Nos. 47; 49. In May 2025, the automatic bankruptcy stay was lifted,2 so the R&R is ripe for review.

1 In February 2025, Judge Altman extended the stay as to Defendant Joseph by a text-only order. That order stayed Plaintiff’s case against Defendant Joseph until the earlier of (1) the effective date of a confirmed Chapter 11 plan; (2) dismissal of the chapter 11 cases of the Debtors; or (3) April 30, 2025. 2 A confirmed Chapter 11 plan became effective on May 9, 2025, lifting the automatic bankruptcy stay. See In re Wellpath Holdings, Inc., No. 24-90533 (Bankr. S.D. Tex.), Docket Nos. 2680 (detailing entry of confirmation order and effective Judge Altman provided 14 days to object to the R&R, but neither party did so. All parties have therefore forfeited their right to appeal Judge Altman’s findings. See

Berkshire v. Dahl,

928 F.3d 520

, 530–31 (6th Cir. 2019) (citing Thomas v. Arn,

474 U.S. 140, 149

(1985)). Moreover, there is no prejudicial clear error in the report. Accordingly, it is ORDERED that the Report and Recommendation, ECF No.

46, is ADOPTED. Further, it is ORDERED that: 1. Defendant Joseph’s Motion to Dismiss, ECF No. 36, is GRANTED; and

2. Defendant Joseph is DISMISSED WITHOUT PREJUDICE from this case for Plaintiff’s failure to exhaust administrative remedies.

This is not a final order and does not close the above-captioned case. /s/Susan K. DeClercq SUSAN K. DeCLERCQ United States District Judge Dated: July 23, 2025 d

date); 3306 (noting that the “automatic stay no longer remains in effect” and that “litigation may proceed against non-debtor defendants (including employees and customers of the Debtors”)).

Reference

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