In re Nierzwicki Holdings, LLC

(Bankr. E.D. Ky. Dec. 30, 2015)

The bankruptcy court denies the motion for stay relief to proceed with prepetition litigation. The movants were seeking to enjoin the debtors’ operation of a nightclub due to an alleged noise nuisance. The bankruptcy court applies the factors for considering whether stay relief should be granted to allow prepetition litigation to continue. While some of the factors were not determinative, allowing the litigation to continue would cause serious damage to the debtors’ reorganization efforts. The court ultimately concludes that stay relief is inappropriate. Opinion below.

2015-12-30 – in re nierzwicki holdings

Author: Matt Lindblom

In re Martin

(6th Cir. B.A.P. Dec. 16, 2015)

The Sixth Circuit B.A.P. affirms the decision of the bankruptcy court granting relief from the automatic stay so that the creditor can continue with state court litigation against the debtor. The court discusses the factors considered in deciding whether to lift the stay for prepetition litigation, but ultimately affirms the bankruptcy court. The state court litigation was further along than the bankruptcy, additional parties not involved in the bankruptcy were involved in the state court litigation, and the creditor had included a jury demand in state court. Opinion below.

2015-12-16 – in re martin

Author: Matt Lindblom