Motion Filed Before Defendant Filed Bankruptcy

[nobeefcow]

My question involves bankruptcy in the state of: NY

I filed a motion for an injunction and before it was ruled upon, the Defendant filed bankruptcy. If or when the stay is lifted, does the fact that the motion was filed first have any bearing on the outcome of the Judge's ruling? I mean could he still order the injunction even though doing so may affect the Defendant's BK plan?

[adjusterjack]

Depends on what the injunction is all about and what effect it might have on the BK plan.

You might get a helpful comment if you share the details about the injunction.

[Taxing Matters]

My question involves bankruptcy in the state of: NY

I filed a motion for an injunction and before it was ruled upon, the Defendant filed bankruptcy. If or when the stay is lifted, does the fact that the motion was filed first have any bearing on the outcome of the Judge's ruling? I mean could he still order the injunction even though doing so may affect the Defendant's BK plan?

If you get the stay lifted then the court hearing the injunction request (which isn't the bankruptcy court) whether the complaint or motion for the injunction was filed before or after the bankruptcy petition isn't going to make a difference in the outcome. The court is going to apply the law that relates to the particular injunction being requested to determine the outcome.

[nobeefcow]

I didn't seek relief from the stay but the debtors chap. 11 plan was confirmed. The injunction was to the prevent a sale or transfer of assets.

I should add that now that the plan is confirmed and debtor is being liquidated, is the stay lifted? I know I can't seek damages against this debtor now but wonder when the plan will be lifted. I'm suing another party in the same case for vicariously liability and I still need to prove debtor liability in this case. If plan confirmation doesn't lift the stay, then I'll file for leave just trying to avoid that whole pain in the rear. The BK is in another state.

[Taxing Matters]

I didn't seek relief from the stay but the debtors chap. 11 plan was confirmed. The injunction was to the prevent a sale or transfer of assets.

That injunction action is likely moot now given the bankruptcy. If the debtor is liquidating per a plan approved by the bankruptcy court, that will preempt any state court order on the assets. You needed to get your claim in on the bankruptcy and get what you could from the Chapter 11 plan. I suggest you consult an attorney about your claims against the various parties to see what your options are at this point.

[pg1067]

I filed a motion for an injunction and before it was ruled upon, the Defendant filed bankruptcy.

What sort of injunction (i.e., what did you ask the court to order the defendant to do or refrain from doing)? What is the nature of the lawsuit in which you filed your motion?

If or when the stay is lifted, does the fact that the motion was filed first have any bearing on the outcome of the Judge's ruling?

Probably not, but it depends on your answers to the question I asked. Also, are you going to make a motion with the bankruptcy court for relief from the automatic stay?

could he still order the injunction even though doing so may affect the Defendant's BK plan?

Absolutely impossible to answer this question intelligently without knowing anything about your case and the injunction you sought.

I didn't seek relief from the stay but the debtors chap. 11 plan was confirmed. The injunction was to the prevent a sale or transfer of assets.

What was the factual basis of your injunction (i.e., what made you think you should be able to prevent the defendant from selling/transferring assets)? What does the Ch. 11 plan say about the assets in question? Is the defendant a debtor-in-possession? Did you file a proof of claim before the Ch. 11 plan was confirmed?

I should add that now that the plan is confirmed and debtor is being liquidated, is the stay lifted?

No, but are you sure that the Ch. 11 plan calls for the debtor to be liquidated? Is the debtor a natural person or a business entity (e.g., a corporation or LLC)?

Sounds like you are in WAY over your head and should be hiring an attorney to assist you.

[nobeefcow]

DIP. The parent is a corp and I sued an LLC subsidiary and I did file a claim. The plan does call for liquidation. I can link to the BK case if that is permitted.

[llworking]

DIP. The parent is a corp and I sued an LLC subsidiary and I did file a claim. The plan does call for liquidation. I can link to the BK case if that is permitted.

You are still being vague enough that its hard to give you any answers. You should consult with a local attorney to whom you can give the actual details.

[pg1067]

DIP. The parent is a corp and I sued an LLC subsidiary and I did file a claim. The plan does call for liquidation. I can link to the BK case if that is permitted.

Great. Please answer ALL of the questions I asked.

[nobeefcow]

Great. Please answer ALL of the questions I asked.

Taxing Matters already answered my question regarding the injunction and I had the same thought on the matter. The only question left remaining is in general, does a plan confirmation in a DIP chapter 11 BK lift the stay? Because the attorney that I consulted with said it was lifted and the defendant states the stay is in place. The attorney I consulted with also said that I could pursue damages but I'm not likely to get them because of the liquidation.

From past experience, I've found I must double check what an attorney tells me since they don't always agree, even with the same details in front of them.