Tatas v. Ali Baba's Terrace, Inc.
- Edgardo Ramos
- 1:19-cv-10595
- U.S. District Court · Southern District of New York
- 2
In Tatas v. Ali Baba’s Terrace, Judge Ramos granted a stay of the entire action after the company filed bankruptcy and extended it to individual defendants.
The entire action was paused, including the matter involving Ali Baba’s Terrace, Inc. and the individual defendants Ali Riza Dogan, Senol Bakir, and Tolgahan Subakan.
What happened
In Tatas v. Ali Baba’s Terrace, Inc., the defendants notified the court that Ali Baba’s Terrace, Inc. had filed for bankruptcy and asked to extend the resulting automatic pause in the case to the individual defendants.
The court granted the motion. It said the bankruptcy automatically paused the case against Ali Baba’s Terrace, Inc., and found that extending the pause to Ali Riza Dogan, Senol Bakir, and Tolgahan Subakan was appropriate because all defendants had coverage under the company’s insurance policy. The court stayed the action in its entirety.
Judge Edgardo Ramos also stated that the defendants’ separate request for a temporary pause while the motion was being decided was denied as moot. The defendants must notify the court within 48 hours after the bankruptcy proceedings are resolved.
The detailed version
- Tatas v. Ali Baba's Terrace, Inc. · No. 1:19-cv-10595
- Edgardo Ramos
- Sept. 16, 2021
Background
The defendants notified the court that Ali Baba’s Terrace, Inc. had filed for bankruptcy in the United States Bankruptcy Court for the Southern District of New York, Case No. 21-bk-11550 (JLG). They also moved to extend the bankruptcy-related automatic stay to the individual defendants, Ali Riza Dogan, Senol Bakir, and Tolgahan Subakan.
Court’s Ruling
The court granted the motion. Under 11 U.S.C. § 362(a), the bankruptcy automatically stayed this matter as to Ali Baba’s Terrace, Inc. The court also found that extending the stay to the individual defendants was appropriate because evidence showed that all defendants had coverage under Ali Baba’s insurance policy. The court explained that extending a stay to non-bankrupt individual defendants can be appropriate when continuing the case could deplete the bankrupt company’s assets, including through a shared insurance policy.
The court therefore stayed the action in its entirety and directed the Clerk of Court to stay the case. The defendants’ request for a temporary stay while the motion was pending was denied as moot. The defendants were instructed to notify the court within 48 hours after Ali Baba’s bankruptcy proceedings were resolved.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.