MSC Mediterranean Shipping Company S.A. v. Baltic Auto Shipping, Inc.
- Katharine Parker
- 1:21-cv-07660
- U.S. District Court · Southern District of New York
- 2
In MSC Mediterranean Shipping v. Baltic Auto Shipping, Judge Parker stayed the case against Marine Transport Logistic after its Chapter 11 filing and sought positions on a broader stay.
Marine Transport Logistic, Inc. is directly affected because the action against it is stayed while its Chapter 11 bankruptcy case is pending. Whether the stay will extend to the entire case remains unresolved.
What happened
MSC Mediterranean Shipping Company S.A. sued Baltic Auto Shipping, Inc. and others. The court received notice that Defendant Marine Transport Logistic, Inc. had filed for Chapter 11 bankruptcy on July 3, 2025.
The court stayed the action against Marine Transport Logistic under the bankruptcy law’s automatic-stay provision while its bankruptcy case continues. The court did not yet decide whether the entire case should be stayed. It ordered the parties to discuss that issue and file their positions by August 11, 2025.
Judge Katharine H. Parker also required status letters every 90 days, beginning October 1, 2025. Those letters must address whether the bankruptcy case remains pending and whether the action against Marine Transport Logistic should remain stayed, be dismissed, or return to the active calendar. The clerk was directed to terminate the motion at ECF No. 213.
The detailed version
- MSC Mediterranean Shipping Company S.A. v. Baltic Auto Shipping, Inc. · No. 1:21-cv-07660
- Katharine Parker
- Aug. 4, 2025
Background
The court received a notice from Defendant Marine Transport Logistic, Inc. (MTL) stating that MTL filed a voluntary Chapter 11 bankruptcy petition on July 3, 2025, in the United States Bankruptcy Court for the Eastern District of New York.
Ruling
The court stayed this action as to MTL under 11 U.S.C. § 362, pending the outcome of MTL’s bankruptcy petition. The court explained that bankruptcy generally automatically stays proceedings against the debtor, but that a bankruptcy filing does not automatically stay a lawsuit against a codefendant. The automatic stay may apply to non-debtors when a claim against a non-debtor would have an immediate adverse economic effect on the debtor’s bankruptcy estate.
The court ordered the plaintiff and all defendants to file letters by August 11, 2025, stating their positions on whether the court should stay the entire case or only the case against MTL. Before filing those letters, the parties must meet and discuss whether they consent to staying the entire case, regardless of whether the automatic stay applies to defendants other than MTL.
Continuing Status Requirements
The parties must file a joint status letter by October 1, 2025, and every 90 days afterward. The letter must state whether MTL’s bankruptcy case remains pending and whether the action against MTL should remain stayed, be dismissed, or be restored to the active calendar. The clerk was directed to terminate the motion at ECF No. 213.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.