Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_07-cv-02268/USCOURTS-azd-2_07-cv-02268-1/pdf.json

Nature of Suit Code: 290
Nature of Suit: Other Real Property Actions
Cause of Action: 28:1332 Diversity-Citizenship

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Nasser Bashiri; Nancy Bashiri, 

Plaintiffs, 

vs.

Vincent Sadler; Richard T. Reibman;

Schwartz Cooper Chartered, 

Defendants. 

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No. CV 07-2268-PHX-JAT

ORDER

Pending before the Court is Plaintiffs’ request for the clerk to enter default against all

Defendants and Defendants’ request to stay this case as a result of Plaintiffs having filed for

bankruptcy. Entry of default is appropriate when dually served Defendants have “failed to

plead or otherwise defend” the lawsuit. Fed. R. Civ. Pro. 55(a). In this case, Defendants have

sought a stay (Doc. #12); therefore, the Court can not conclude that they have not “otherwise

defend[ed]” this litigation.

However, with regard to the motion to stay, the automatic stay provisions of the

bankruptcy code do not apply to proceedings initiated by the debtor, as is the case here. See

Martin-Trigona v. Champion Federal Savings & Loan, 1988 WL 46596, *2 (N.D. Ill. 1988);

In re Hill, 39 B.R. 894, 897 (Bkrtcy. Or., 1984). Defendants, while correctly noting that this

litigation is now property of the bankruptcy estate, have cited no authority for their

arguments that, “Until the ‘proper’ plaintiff is in place, this lawsuit should not move

Case 2:07-cv-02268-JAT Document 14 Filed 03/03/08 Page 1 of 2
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forward.” Doc. #12 at 2. In this circumstance, the Court finds no reason to stay this litigation.

Accordingly,

IT IS ORDERED that Plaintiffs’ request for entry of default (Doc. #13) is denied

without prejudice to refiling this request if Defendants fail to comply with the terms of this

Order;

IT IS FURTHER ORDERED that Plaintiffs shall send a copy of this Order and all

other relevant pleadings in this litigation to the bankruptcy trustee within 5 business days of

receiving this Order;

IT IS FURTHER ORDERED that within 10 business days of receiving this Order,

the bankruptcy trustee shall file a notice with this Court indicating whether (or not) the

trustee intends to intervene as the real party in interest in this litigation;

IT IS FURTHER ORDERED that Defendants’ motion to stay (Doc. #12) is denied;

Defendants shall answer or otherwise respond to the First Amended Complaint within 15

business days of receiving this Order.

DATED this 3rd day of March, 2008.

Case 2:07-cv-02268-JAT Document 14 Filed 03/03/08 Page 2 of 2