Perez-Pinon v. Instant Brands, LLC

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO VIOLETA PEREZ-PINON, Plaintiff, Vv. No. 1:24-cv-286 LF/KRS INSTANT BRANDS, LLC, INSTANT BRANDS, INC., and CORRELLE BRANDS, LLC, Defendants. ORDER STAYING CASE PURSUANT TO BANKRUPTCY FILING THIS MATTER comes before the Court on Plaintiff’s Notice of Stay, (Doc. 2), and Defendants’ Suggestion of Bankruptcy, (Doc. 4). The parties state that Defendants filed voluntary petitions in the United States Bankruptcy Court for the Southern District of Texas, pursuant to Chapter 11 of the Bankruptcy Code, and an Order entered in the Bankruptcy Case stays all product liability claims pending a final order in the “Suppliers’ Litigation” portion of the Bankruptcy Case. (Docs. 2 and 4) (citing Bankr. Dkt. No. 1146, at §31(a), attached at Doc. 2-1). Considering the parties’ notices and 11 U.S.C. § 362(a) of the Bankruptcy Code, which provides that the commencement of a Chapter 11 case operates as a stay of the continuation of a judicial action against a defendant, an automatic stay of these proceedings is now in effect. See, e.g., In re Escobedo, 2014 WL 3051208, at *2 (Bankr. D.N.M.) (“When a bankruptcy petition is filed, § 362(a) automatically stays any proceeding or enforcement action against the debtor.”’). Counsel shall notify the Court 1f and when the stay is lifted. IT IS SO ORDERED.

KEVIN R. SWEAZEA UNITED STAGES MAGISTRATE JUDGE