In Re: 45 John Lofts, LLC

Background

The defendants-appellants, Chaim Babad and Congregation Kahal Minchas Church, asked the court to stay, or pause, enforcement of three bankruptcy-related rulings while their appeals were pending: the Bankruptcy Court’s November 2, 2023 turnover order; a June 2, 2023 judgment and order entered in favor of 45 John Lofts, LLC; and the related April 14, 2023 memorandum of decision.

This was the defendants’ renewed motion. In an earlier ruling, the court denied their November 20, 2023 motion without prejudice and allowed them to renew it after providing proof of a $3 million bond. The defendants later filed proof of a $3 million appeal bond naming both defendants as principals. The plaintiff opposed the renewed motion.

Court’s reasoning

Federal Rule of Civil Procedure 62(b) allows a party to obtain a stay of execution of a judgment by providing a bond or other security approved by the court. The court explained that a stay takes effect when the court approves the bond or security. The court also exercised discretion under Bankruptcy Rule 8007, which governs stays pending an appeal in a bankruptcy matter.

The court found that the plaintiff would not be prejudiced or harmed by the stay because the $3 million bond reasonably protected the plaintiff. If the plaintiff ultimately prevailed on appeal, the bond would be available to satisfy the money judgment owed to the plaintiff.

Disposition

Judge Mary Kay Vyskocil GRANTED the defendants-appellants’ motion to stay pending appeal under Rule 62(b) and Bankruptcy Rule 8007. The Clerk of Court was respectfully requested to terminate the motion listed at docket entry 29. The opinion does not state the outcome of the underlying appeals.