Rodriguez v. Lulav Properties, LLC

Background

The court received notice that Defendant Lulav Properties LLC filed a voluntary petition for Chapter 11 bankruptcy protection on January 17, 2025, in the United States Bankruptcy Court for the Eastern District of New York.

Rulings and directives

The court stayed this action as to Lulav under 11 U.S.C. § 362, the bankruptcy law's automatic-stay provision, pending the outcome of Lulav's bankruptcy petition. The order does not stay the action against the other defendants at this point.

The court explained that a bankruptcy filing automatically stays certain proceedings against the debtor, but ordinarily does not automatically stay a suit against a codefendant that is not the debtor. The court noted that the stay can sometimes apply to non-debtors when a claim against the non-debtor would have an immediate adverse economic consequence for the debtor's bankruptcy estate.

By August 8, 2025, the plaintiff and all defendants must file letters stating their positions on whether the court should stay the entire case or only the action against Lulav. Before filing those letters, the parties must meet and confer about possibly agreeing to stay the entire case, even if the automatic stay does not apply to the non-debtor defendants.

By October 1, 2025, and every 90 days afterward, the parties must file a joint letter reporting whether Lulav's bankruptcy case remains pending and whether the action against Lulav should remain stayed, be dismissed, or return to the active calendar. The order does not decide the underlying claims.