Melrose Place Holdings v. The Socotra Opportunity Fund, LLC

Case 2:22-cv-01329-MWF-PD Document 62 Filed 01/11/23 Page 1 of 2 Page ID #:1678 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES—GENERAL Case No. CV 22-1329-MWF (PDx) Date: January 11, 2023 Title: Melrose Place Holdings et al v. The Socotra Opportunity Fund, LLC et al Present: The Honorable MICHAEL W. FITZGERALD, U.S. District Judge Deputy Clerk: Court Reporter: Rita Sanchez Not Reported Attorneys Present for Plaintiff: Attorneys Present for Defendant: None Present None Present Proceedings (In Chambers): ORDER TO SHOW CAUSE RE: PLAINTIFF’S NOTICE OF BANKRUPTCY FILING AND SUGGESTION OF AUTOMATIC STAY [61] On January 9, 2023, the Court received a Notice of Automatic Stay Pursuant to a Bankruptcy Filing (the “Notice”), filed by Plaintiff Sona Patel. (Docket No. 61). According to the Notice, Plaintiff filed a Chapter 7 bankruptcy case on October 24, 2022. (Id. at 1). The Notice suggests that the Court should stay this civil action. Section 362 of the Bankruptcy Code provides for an automatic stay of certain proceedings against a debtor when the debtor has filed for bankruptcy. 11 U.S.C. § 362 (a). But here, because the debtor in the Chapter 7 bankruptcy case is the Plaintiff, rather than the Defendant, the Court does not believe the automatic stay provision of the Bankruptcy Code applies. See In re Palmdale Hills Prop., LLC, 654 F.3d 868, 875 (9th Cir. 2011) (“The stay does not prevent a plaintiff/debtor from continuing to prosecute its own claims nor does it prevent a defendant from protecting its interests against claims brought by the debtor.”). Accordingly, Plaintiff is ORDERED TO SHOW CAUSE, in writing, by no later than January 23, 2023, why this action should be stayed pursuant to the Bankruptcy Code. Defendants may file an optional Reply by no later than January 30, 2023. ______________________________________________________________________________ CIVIL MINUTES—GENERAL 1 Case 2:22-cv-01329-MWF-PD Document 62 Filed 01/11/23 Page 2 of 2 Page ID #:1679 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES—GENERAL Case No. CV 22-1329-MWF (PDx) Date: January 11, 2023 Title: Melrose Place Holdings et al v. The Socotra Opportunity Fund, LLC et al The deadline for Defendants to respond to the Third Amended Complaint is CONTINUED to February 13, 2023, unless this Court affirmatively stays this action prior to that date. IT IS SO ORDERED. ______________________________________________________________________________ CIVIL MINUTES—GENERAL 2