Westhoff Vertriebsges mbH v. Berg

Opinion

WESTHOFF VERTRIESBGSGES Case No. 22-cv-0938-BAS-SBC MBH, ORDER LIFTING STAY Plaintiff, v. (ECF No. 88)

CHRISTOPHER BERG; BLUESKYE CREATIVE, INC.; and DOES 1–10, Defendants.

This Court entered an automatic stay of the instant proceeding nearly nine months ago after Defendants Berg and BlueSkye filed for bankruptcy. (ECF No. 84.) The Court also permitted BlueSkye’s counsel, Gordon Rees Scully Mansukhani, LLP (“GRSM”) to withdraw as counsel for Defendants, leaving BlueSkye, a corporation, without representation in the stayed case. (Id.) Plaintiff now informs the Court that the bankruptcy court has granted “relief from stay and for reconsideration as to the accounting, fraud and breach of fiduciary duty causes of action, along with the entirety of Plaintiff’s motion for attorneys’ fees and costs.” (ECF No. 88 at 7.) Accordingly, Plaintiff Westhoff now moves to lift the stay in this action. (Id.) The bankruptcy court in the related proceeding has already granted Plaintiff Westhoff’s motion for stay relief and to proceed to final judgment in this Court with respect to the accounting, fraud, and breach of fiduciary duty causes of action. (/d., Ex. A.) Accordingly, the Court GRANTS the Motion. (/d.) However, BlueSkye cannot proceed in this case without representation. See CivLR 83.3Q); see also CE Res., Inc. v. Magellan Grp., LLC, No. 2:08-CV-02999MCEKJM, 2009 WL 3367489, at *2 (E.D. Cal. Oct. 14, 2009) (“It is a longstanding rule that corporations and other incorporated associations must appear in court through an attorney.” (citing Jn re W. Airlines, 40 F.3d 1058, 1059 (9th Cir. 1994)). BlueSkye is hereby ORDERED to retain new counsel within forty-five (45) days of the date of this order, or risk default judgment. See United States v. High Country Broad. Co., 3 F.3d 1244, 1245 (9th Cir. 1993) (affirming a default judgment against a corporate defendant that failed to comply } with a court order requiring it to retain new counsel). Within fourteen days of the date BlueSkye’s counsel has entered an appearance, parties are ORDERED to contact the Magistrate Judge’s chambers to schedule both a settlement conference and case management conference. BlueSkye is warned that if it does not retain counsel within the time period required by the Court, the Court may place BlueSkye in default. DATED: December 13, 2024 ( itl A (Liphan 6 United States District Judge 4.