Shah

Shah v. Glendale Federal Bank

Good Law

1996 Cal. App. LEXIS 381·44 Cal. App. 4th 1371·52 Cal. Rptr. 2d 417·96 Daily Journal DAR 4927·96 Cal. Daily Op. Serv. 3011

Court of Appeal of CaliforniaApril 29, 1996B093075California3,456 words

Opinion

Turner, J.

This case presents the question whether the automatic stay resulting from plaintiffs’ and appellants’ bankruptcy petition precludes our disposition of this appeal. There is no California decisional authority directly on point. However, the federal circuit courts of appeals have held the automatic stay provision ( 11 U.S.C. § 362 (a)(1)) is inapplicable to an appeal in a lawsuit initiated by the debtor (rather than against the debtor) in the lower court, regardless of the appellate posture of the case. We conclude the automatic stay provision is inapplicable because the debtors commenced this action in the superior court and have filed the notice of appeal.

Jayendra A. Shah and Usha J. Shah, plaintiffs, filed this action alleging breach of contract and tort causes of action against Glendale Federal Bank and Verdugo Service Corporation. While the action was pending in the superior court, plaintiffs filed a petition under chapter 11 of the Bankruptcy Code. (11 U.S.C.) Thereafter, the superior court entered an order dismissing plaintiffs’ complaint and denied their reconsideration motion. Plaintiffs appealed from those orders. Presently before us is plaintiffs’ motion to…

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Parties

JAYENDRA A. SHAH
Plaintiff
GLENDALE FEDERAL BANK
Defendant

Judges

Turner

Cites (66)

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