C.A.L. Produce Sales Corporation v. CFG Produce, Inc.

Summary

The United States District Court for the Eastern District of California orders Plaintiff to submit supplemental briefing concerning the effect of Defendant Shawn Jackson’s bankruptcy on the pending action and motion for default judgment against CFG Produce, Inc. The court specifically requests briefing on whether the action against Jackson is stayed under 11 U.S.C. § 362(a) and whether the entire action should be stayed pending resolution of the bankruptcy proceeding.

Holdings

1. Plaintiff must provide supplemental briefing explaining why the action against Shawn Jackson should not be stayed under 11 U.S.C. § 362(a) and why the entire action should not be stayed until the related bankruptcy proceeding is resolved.
2. A federal district court may exercise its inherent authority to stay litigation when appropriate, subject to consideration of the competing interests identified in Landis and related precedent and subject to the limitations that a stay cannot rest solely on judicial economy or be indefinite and cause undue delay.

Questions Presented

1. Whether Plaintiff must provide supplemental briefing concerning whether the action against Defendant Shawn Jackson is automatically stayed under 11 U.S.C. § 362(a) because of Jackson's bankruptcy proceeding.
2. Whether the entire action, including Plaintiff's pending motion for default judgment against CFG Produce, Inc., should be stayed pending resolution of the related bankruptcy proceeding.
3. What standards govern the court's exercise of its inherent authority to stay litigation under Landis and related Ninth Circuit precedent.

Disposition

other