Verit Muy and Mr. Tea, LTD v. Michelle Moore and Michelle Moore, LLC

UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA

Verit Muy and Mr. Tea, LTD, Case No. 25-cv-499 (JMB/DJF) Plaintiffs, v. ORDER Michelle Moore and Michelle Moore, LLC, Defendants.

This matter is before the Court on Defendants Michelle Moore and Michelle Moore, LLC’s Suggestion of Bankruptcy and Request for Stay of Proceedings as to Defendant Verit Muy (ECF No. 48) (“Notice”). This case concerns a franchising dispute between Plaintiffs Verit Muy and Mr. Tea, LTD (the franchisees) and Defendants (the franchisors). (ECF No. 1 at 1-2.) The Notice states that Mr. Muy has filed for Chapter 13 bankruptcy. As a result, Defendants contend this proceeding should be automatically stayed pursuant to 11 U.S.C. § 362. Defendants are plainly mistaken.

Section 362 automatically stays proceedings against debtors who have filed for bankruptcy; it does not stay proceedings initiated by such debtors. See Brown v. Armstrong, 949 F.2d 1007, 1009-10 (8th Cir. 1991). Section 362 is therefore inapplicable to these proceedings because Mr. Muy initiated these proceedings and Defendants have not pursued any counterclaims against him.

Defendants’ request for a stay is DENIED, and all pretrial schedule deadlines remain in full force and effect.

IT IS SO ORDERED.

Dated: April 2, 2026 s/ Dulce J. Foster Dulce J. Foster United States Magistrate Judge