Black v. HSBC Bank, USA (In re Black)

MEMORANDUM DECISION REGARDING MOTIONS TO DISMISS COMPLAINT

In this adversary proceeding, the court is called to consider the application of an “in rem” order for relief from the automatic stay entered under 11 U.S.C. § 362 (d)(4) 2 by another bankruptcy court prior to commencement of this bankruptcy ease. The debtors Carl Danny Black and Delaina Erica Black (the “Blacks”) and a nondebtor Teresa Jean Moore (“Moore”) (collectively, the “Plaintiffs”) contend that defendant HSBC Bank, USA, National Association, as Trustee for Wells Fargo Asset Securities Corporation, Mortgage Pass-Through Certificates, Series 2007-7 (“HSBC”), and its co-defendants willfully violated the automatic stay in this bankruptcy case by prosecuting an unlawful detainer action and forcibly evicting the Plaintiffs from their place of residence after the commencement of this bankruptcy (the “Complaint”). Now before the court are two related motions (the “Motions”) filed by defendants HSBC and Randall Naiman (collectively, the “Movants”) requesting that the court dismiss the adversary proceeding with prejudice on the grounds that their actions were protected by an in rem order previously entered by another…