Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_14-cv-00300/USCOURTS-azd-2_14-cv-00300-0/pdf.json

Nature of Suit Code: 791
Nature of Suit: Employee Retirement Income Security Act (ERISA)
Cause of Action: 29:201 Denial of Overtime Compensation

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Amy McGough; Joshua Reyes; and Monte

McRae,

Plaintiffs, 

vs.

Phoenix AZ Power Sweep, Inc., an

Arizona corporation; and Todd Woods and

Michelle Woods, husband and wife, 

Defendants. 

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No. CV-14-300-PHX-LOA

ORDER

The Court has received the Notice of Bankruptcy Filing, informing the Court and

other parties herein that Defendant Phoenix AZ Power Sweep, Inc., has filed a Petition under

Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District

of Arizona, Case No. 2:14-bk-00386-SSC. (Doc. 7) By virtue of the automatic stay imposed

under 11 U.S.C. § 362(a)(1) with the filing of the Bankruptcy Petition, all pending matters

against Defendant Phoenix AZ Power Sweep, Inc. are, and will be, stayed until further order

of the Court. See 11 U.S.C. § 362(a)(1); O’Donnell v. Vencor Inc., 466 F.3d. 1104 (9th Cir.

2006). Because the Bankruptcy Court’s automatic bankruptcy stay applies to only Defendant

Phoenix AZ Power Sweep, Inc., the Court expects Plaintiffs to continue the prosecution of

this case against the other two defendants. If Plaintiffs desire a stay of this entire case

because the subject Bankruptcy Petition, they must move to do so promptly.

Accordingly,

IT IS ORDERED placing the claims alleged in this case against Defendant Phoenix

Case 2:14-cv-00300-LOA Document 8 Filed 03/11/14 Page 1 of 2
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AZ Power Sweep, Inc. only on inactive status until August 25, 2014 (180 days).

The claims against Defendant Phoenix AZ Power Sweep, Inc. may be dismissed

without prejudice and further notice on August 25, 2014 (180 days), pursuant to Rule 41(b)

(lack of prosecution) unless prior to the scheduled dismissal date Plaintiffs demonstrate they

have moved to lift the bankruptcy stay, but the request has not been ruled upon or has been

denied; have sought to reduce the claim(s) against the debtor to judgment in the Bankruptcy

Court in an adversary proceeding and the adversary proceeding has not yet been resolved

despite Plaintiffs’ due diligence in seeking such a resolution; obtained severance of the

claim(s) against the debtor from the claim(s) against the other parties to this action; or

demonstrated a reasonable basis for continuance of the claims alleged against Defendant

Phoenix AZ Power Sweep, Inc. on inactive status. See 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).”).

Any party may request the Court to schedule an informal status conference before the

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

Bankruptcy Court that would permit the claim(s) against Defendant Phoenix AZ Power

Sweep, Inc. to proceed.

IT IS FURTHER ORDERED that the Clerk of Court is kindly directed to provide

a copy of this Order to Mr. Allan D. NewDelman, Attorney for Debtor/Defendant Phoenix

AZ Power Sweep, Inc.

Dated this 11th day of March, 2014.

Case 2:14-cv-00300-LOA Document 8 Filed 03/11/14 Page 2 of 2