Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_09-cv-00319/USCOURTS-azd-2_09-cv-00319-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1446 Petition for Removal

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Ella C. Ramirez, 

Plaintiff, 

vs.

Litton Loan Servicing LP; Penny Mac

Loan Services, 

Defendant. 

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No. CV-09-0319-PHX-LOA

ORDER

This case arises upon the Court’s review of the docket. In Defendant

PennyMac Loan Services, LLC’s Joinder in Motion to Dismiss, docket # 7 at 1, n. 1, the

Court discovers Plaintiff Ella C. Ramirez may have recently filed a bankruptcy petition. The

Court independently confirms Plaintiff Ramirez has, indeed, filed for bankruptcy protection

on February 13, 2009 in the United States Bankruptcy Court for the District of Arizona in

No. BK-09-498-PHX-CGC.

By virtue of the automatic stay imposed pursuant to 11 U.S.C. § 362(a)(1) with

the filing of Plaintiff Ramirez’ Chapter 7 Bankruptcy Petition, all pending matters against

Defendants are, and will be stayed, until further order of the Court. 11 U.S.C. § 362(a)(1);

O’Donnell v. Vencor Inc., 466 F.3d. 1104 (9th Cir. 2006).

There is presently pending in the Bankruptcy Court the Bank of New York

Mellon’s and Litton Loan Servicing’s Motion for Relief from Stay, docket # 17, which

Case 2:09-cv-00319-GMS Document 14 Filed 03/19/09 Page 1 of 3
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Plaintiff Ramirez has opposed. The Motion has not been ruled upon at this time. 

The bankruptcy docket also reflects Mr. Robert A. Mackenzie, 2025 N. 3rd St.,

#157, Phoenix, Az 85004 has been appointed as the Bankruptcy Trustee. A bankruptcy

trustee is vested with the exclusive right to sue on behalf of a bankruptcy estate. Title 11

U.S.C. § 323; Estate of Spirtos, 443 F.3d 1172, 1176 (9th Cir. 2006) (“[t]he bankruptcy code

endows the bankruptcy trustee with the exclusive right to sue on behalf of the estate.”). The

Ninth Circuit makes clear that although “the trustee may authorize others to bring suit, . . .

the right to bring suit--or choose not to do so--belongs to the trustee in the first instance.” Id.

at 1175.

In O’Donnell, plaintiff’s case was placed on inactive status to give her

sufficient time to move to lift the stay, seek to reduce the claims against defendant to

judgment in the bankruptcy court, or otherwise demonstrate a reasonable basis to continue

the case on inactive status. O’Donnell was warned that failure to comply would result in

dismissal of her complaint for failure to prosecute under Federal Rule of Civil Procedure

41(b). Eleven days after the expiration of the deadline, O’Donnell filed an untimely motion,

seeking a continuance of her case on inactive status and requesting an informal status

conference. After O’Donnell failed to appear at the status conference she requested,

O’Donnell’s complaint was dismissed without prejudice under Rule 41(b). She did not appeal

that dismissal. O’Donnell, 466 F.3d. at 1108. “Although [t]he general rule is that actions

taken in violation of an automatic stay are void, the dismissal for failure to prosecute was not

void because it did not constitute a continuation of a judicial proceeding against the debtor

under 11 U.S.C. § 362(a)(1).” Id. (internal quotation marks and citations omitted).

Dismissal of O’Donnell’s complaint was affirmed.

Plaintiff is similarly advised that this lawsuit against Defendants will be

dismissed on June 19, 2009 (90 days) pursuant to Rule 41(b) (lack of prosecution) unless

prior to the scheduled dismissal date, Plaintiff Ramirez with appropriate authorization

from the Trustee, the Bankruptcy Trustee or any Defendant herein demonstrates in

writing that the stay in the Bankruptcy Court has been lifted; Plaintiff or Trustee has

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sought to reduce the claim(s) against the Defendants to judgment in the Bankruptcy Court

in an adversary proceeding which has not yet been adjudicated despite Plaintiff’s or

Trustee’s due diligence in seeking its resolution; or Plaintiff or Trustee has timely

demonstrated a reasonable basis for continuance of the lawsuit on inactive status. Any

party herein may ask the Court to schedule an informal status conference before the 90-

day period expires to inform the Court what action, if any, has been undertaken in the

Bankruptcy Court that would permit this lawsuit to proceed.

On the Court’s own motion,

IT IS ORDERED staying this lawsuit in its entirety and placing it on

inactive status until June 19, 2009 (90 days) for dismissal.

IT IS FURTHER ORDERED directing the Clerk to mail a copy of this

Order to Mr. Robert A. Mackenzie, 2025 N. 3rd St., #157, Phoenix, Az 85004

DATED this 18th day of March, 2009.

Case 2:09-cv-00319-GMS Document 14 Filed 03/19/09 Page 3 of 3