Garcia v. 3662 Broadway Restaurant Corp.
- Stewart Aaron
- 1:19-cv-08297-SDA
- U.S. District Court · Southern District of New York
- 2
Judge Ramos stayed Garcia v. 3662 Broadway against all defendants while Albertico Chavez’s bankruptcy proceedings continue.
The stay applies to Alfredo Garcia’s case against 3662 Broadway Restaurant Corp. and Albertico Chavez. Chavez’s bankruptcy filing automatically stayed the proceedings as to him, and the court extended the stay to all defendants.
What happened
In Garcia v. 3662 Broadway Restaurant Corp., Albertico Chavez told the court that he had filed for bankruptcy under Chapter 13. That filing automatically paused this case as to Chavez only.
3662 Broadway Restaurant Corp. asked the court to extend the pause to the corporation because Chavez wholly owned it and resolving a claim against the corporation could immediately harm him financially.
Judge Ramos granted the corporation’s motion and stayed the case against all defendants until the bankruptcy proceedings concerning Chavez are resolved. Garcia could object in writing by January 20, 2020, after which the court would set a briefing schedule.
The detailed version
- Garcia v. 3662 Broadway Restaurant Corp. · No. 1:19-cv-08297-SDA
- Stewart Aaron
- Dec. 19, 2019
Background
Plaintiff Alfredo Garcia sued 3662 Broadway Restaurant Corp., doing business as Taqueria San Pedro, and Albertico Chavez. Chavez filed a voluntary Chapter 13 bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of New York and filed a notice of that bankruptcy in this case.
Under 11 U.S.C. § 362(a), the bankruptcy filing automatically stayed—or paused—these proceedings as to Chavez only. 3662 Broadway then moved to extend that stay to the corporation. It argued that Chavez wholly owned the corporation and that resolving a claim against the corporation would have an “immediate adverse economic impact” on Chavez. The opinion states that the court had granted the same request in a related case without opposition from that plaintiff.
Ruling
The court granted 3662 Broadway’s motion. The case was stayed against all defendants pending the disposition of the bankruptcy proceedings concerning Chavez. The order allowed Garcia to object in writing by January 20, 2020; if he objected, the court would set a briefing schedule. The order addressed the stay and did not decide the underlying claims.
Judge Edgardo Ramos issued the order.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.