Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_09-cv-01411/USCOURTS-casd-3_09-cv-01411-0/pdf.json

Nature of Suit Code: 140
Nature of Suit: Negotiable Instruments
Cause of Action: 28:1331 Fed. Question

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- 1 - 09cv1411-WQH-RBB

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

TUAN T. NGUYEN & BINHTHUY L.

NGUYEN,

Plaintiffs,

CASE NO. 09cv1411-WQH-RBB

ORDER

vs.

AEGIS FUNDING CORPORATION;

AMERICAS SERVICING COMPANY;

SPECIALIZED LOAN SERVICING,

LLC; NDEX WEST, LLC, and DOES 1-

10,

Defendants.

HAYES, Judge:

On June 29, 2009, Plaintiffs initiated this action by filing the Complaint in this Court.

(Doc. # 1). The Complaint alleges various claims related to a “Promissory Note ... entered into

on or about April 19, 2006 by and between Plaintiffs and Defendant Aegis Funding

Corporation.” (Doc. # 1 at 5).

On July 27, 2009, Defendant Specialized Loan Servicing, LLC filed a Motion to

Dismiss the Complaint (Doc. # 3), and on September 17, 2009, Defendant America’s Servicing

Company filed a Motion to Dismiss the Complaint (Doc. # 9).

On August 6, 2009 and August 19, 2009, Defendant Aegis Funding Corporation filed

a “Suggestion of Bankruptcy” with this Court. (Doc. # 6, 8). The Suggestion of Bankruptcy

notified the Court that on August 13, 2007, Aegis Funding Corporation filed a bankruptcy case

under Chapter 11 of the United States Bankruptcy Code in the District of Delaware,

Bankruptcy case number 07-11119-BLS.

Case 3:09-cv-01411-WQH-RBB Document 10 Filed 10/14/09 Page 1 of 2
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- 2 - 09cv1411-WQH-RBB

Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a), operates as an automatic

stay of the commencement or continuation of a judicial proceeding against the debtor,

commenced prior to the filing of bankruptcy. However, “[i]n the absence of special

circumstances, stays pursuant to section 362(a) are limited to debtors and do not include

non-bankrupt co-defendants.” Ingersoll-Rand Fin. Corp. v. Miller Mining Co., Inc., 817 F.2d

1424, 1427 (9th Cir. 1987) (citations omitted). The Ninth Circuit explained that under “special

circumstances,” the bankruptcy court may extend to stay to other entities pursuant to 11 U.S.C.

§ 105(a) (“The court may issue any order, process, or judgment that is necessary or appropriate

to carry out the provisions of this title.”). Ingersoll-Rand Fin. Corp., 817 F.2d at 1427. The

Ninth Circuit held that in “the absence of any order from the bankruptcy court staying

proceedings as to the [non-bankrupt co-defendants],” a plaintiff’s action may proceed against

the non-bankrupt co-defendants. Id.

No filing in this Court has indicated that the bankruptcy stay which applies to

Defendant Aegis Funding Corporation has been extended to any other parties.

IT IS HEREBY ORDERED that the action in this Court is STAYED as to Defendant

Aegis Funding Corporation only. This action is NOT STAYED as to Plaintiff’s claims

against all other Defendants.

Any opposition to the pending Motions to Dismiss (Doc. # 3, 9) must be filed no later

than October 26, 2009. Any reply must be filed no later than November 2, 2009. There will

be no oral argument on either Motion to Dismiss.

Defendant Aegis Funding Corporation is ordered to notify the Court in writing of any

changes in the bankruptcy case relevant to this action, including but not limited to a discharge

or dismissal of the bankruptcy case. The Clerk of the Court shall mail a copy of this Order to

counsel for Defendant Aegis Funding Corporation, as listed in the Suggestion of Bankruptcy.

(Doc. # 6 at 2). 

DATED: October 14, 2009

WILLIAM Q. HAYES

United States District Judge

Case 3:09-cv-01411-WQH-RBB Document 10 Filed 10/14/09 Page 2 of 2