Jones, Esq. v. Landry's, Inc.
- Gregory Woods
- 1:23-cv-09920
- U.S. District Court · Southern District of New York
- 3
In Jones, Esq. v. Landry’s, Inc., Judge Woods extended the bankruptcy stay to all defendants, paused the case, terminated pending motions, and adjourned dates.
The order stays the case as to Joy Vida Jones, Landry’s, Inc., Palm Management Corp., Just One More Restaurant Corp., and the other defendants. It also terminates pending motions and postpones remaining dates while requiring Jones to provide periodic status updates.
What happened
In Jones, Esq. v. Landry’s, Inc., Joy Vida Jones alleged employment discrimination and breach of contract. One defendant, Just One More Restaurant Corp., filed for bankruptcy, which automatically stayed the case against it.
The court decided that the stay should also cover Landry’s, Inc. and Palm Management Corp. because Jones asserted several claims against all defendants together and sought to hold them jointly responsible. Continuing the case against the other defendants could therefore affect Just One More’s bankruptcy estate.
Judge Gregory H. Woods ordered that the entire case remain stayed until the bankruptcy court or this court lifts the stay. He also terminated pending motions, adjourned remaining dates, and required Jones to update the court about the case every three months.
The detailed version
- Jones, Esq. v. Landry's, Inc. · No. 1:23-cv-09920
- Gregory Woods
- Feb. 13, 2025
Background
Joy Vida Jones commenced the action on November 9, 2023, alleging employment-discrimination and breach-of-contract claims. On August 7, 2024, Just One More Restaurant Corp. notified the court that it had filed a Chapter 11 bankruptcy petition in March 2019. Under the Bankruptcy Code, a bankruptcy filing automatically stays actions against the debtor.
The court held a conference on February 13, 2025, to address whether the stay also applied to the remaining defendants, Landry’s, Inc. and Palm Management Corp.
Reasoning
The court explained that the automatic bankruptcy stay generally applies to the debtor and not to non-debtor co-defendants. An exception may apply when litigation against the non-debtors is sufficiently likely to have an immediate adverse economic effect on the bankruptcy estate.
The court found that exception applicable here. Jones asserted three of her four claims against all co-defendants, including Just One More, and sought to hold them jointly and severally liable. Because Just One More could be jointly and severally liable for those claims, litigation against Landry’s and Palm Management could affect Just One More’s bankruptcy estate.
Order
The court ordered that the case is automatically stayed as to all defendants. The stay will remain in effect until the U.S. Bankruptcy Court for the Middle District of Florida lifts the stay as to Just One More or the remaining defendants, or until this court orders the stay lifted as to the remaining defendants. Jones must file a status letter on or about May 13, 2025, and every three months afterward until the stay is lifted. The clerk was directed to note the stay on the docket, terminate all pending motions, and adjourn all remaining dates.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.