Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_09-cv-03486/USCOURTS-caed-2_09-cv-03486-1/pdf.json

Nature of Suit Code: 140
Nature of Suit: Negotiable Instruments
Cause of Action: 15:1601 Truth in Lending

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UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

SUZANNE MCDANIEL and

ROBERT MCDANIEL,

NO. CIV. S-09-3486 LKK/EFB

Plaintiffs,

v.

O R D E R

INDYMAC FEDERAL BANK; THE

LINCOLN GROUP OF FINANCIAL

SERVICE; ROBERT SEAN ALLEN;

JAIMEE LEE and DOES 1-20,

inclusive,

Defendants.

 /

Plaintiffs in this suit, Mr. and Ms. McDaniel, bring various

claims regarding their home loan. A scheduling conference in the

above-captioned matter is currently set for March 1, 2010 at 10:30

a.m. On February 24, 2010, counsel for plaintiffs emailed the

court stating that “Mr. McDaniel has filed a Chapter 7 Bankruptcy,”

and indicating counsel’s belief that the bankruptcy filing stayed

proceedings in this case.

Under the Bankruptcy Code, the filing of a bankruptcy petition

automatically stays many actions, including “the commencement or

Case 2:09-cv-03486-LKK-EFB Document 26 Filed 02/25/10 Page 1 of 2
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continuation . . . of a judicial . . . proceeding against the

debtor.” 11 U.S.C. § 362(a)(1). As the statutory text makes

clear, the automatic stay provision does not apply to proceedings

initiated by a debtor. Parker v. Bain (In re Parker), 68 F.3d

1131, 1137 (9th Cir. 1995). At least eight other circuits have

joined in this conclusion. Crosby v. Monroe County, 394 F.3d 1328,

1331 n.2 (11th Cir. 2004), Aiello v. Providian Fin. Corp., 239 F.3d

876, 880 (7th Cir. 2001), Checkers Drive-In Restaurants v.

Commissioner of Patents & Trademarks, 51 F.3d 1078, 1082 (D.C. Cir.

1995), Koolik v. Markowitz, 40 F.3d 567, 568 (2d Cir. 1994),

McMillan v. MBank Fort Worth, N.A., 4 F.3d 362, 366 (5th Cir.

1993), Brown v. Armstrong, 949 F.2d 1007, 1009 (8th Cir. 1991),

Cathey v. Johns-Manville Sales Corporation, 711 F.2d 60, 61 (6th

Cir. 1983), Assoc. of St. Croix Condominium Owners v. St. Croix

Hotel Corp., 682 F.2d 446, 448 (3d Cir. 1982).

Accordingly, plaintiffs have not provided any basis for

concluding that this case has been automatically stayed.

IT IS SO ORDERED.

DATED: February 25, 2010.

Case 2:09-cv-03486-LKK-EFB Document 26 Filed 02/25/10 Page 2 of 2