Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_11-cv-02060/USCOURTS-azd-2_11-cv-02060-4/pdf.json

Nature of Suit Code: 220
Nature of Suit: Foreclosure
Cause of Action: 28:1441 Petition for Removal- Breach of Contract

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Michael Grady; Jennifer Grady, 

Plaintiffs, 

vs.

Bank of Elmwood; Elmwood Financial

Corporation; Jonathan Levin; Sarah Levin,

Defendants. _________________________________

Tri City National Bank,

Counterclaimant,

vs.

Michael Grady and Jennifer Grady,

Counterdefendant. _________________________________

The Federal Deposit Insurance

Corporation as Receiver for Bank of

Elmwood,

Intervenor.

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No. CV 11-2060-PHX-JAT

ORDER

On August 18, 2012, Plaintiffs filed a notice of filing bankruptcy. (Doc. 83).

Generally, 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.,

Case 2:11-cv-02060-JAT Document 84 Filed 08/27/12 Page 1 of 2
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 But the cause of action is the property of the estate. Turner v. Cooke, 362 F.3d

1219, 1225-26 (9th Cir. 2004); Cusano v. Klien, 264 F.3d 936, 945 (9th Cir. 2001).

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1984).1 Thus, the Court confirms all outstanding deadlines in this case. However, the

pending motion to exonerate bond and to distribute proceeds may involve property of the

bankruptcy estate; accordingly, the Court will treat that motion as subject to the stay and

deny it, without prejudice.

Based on the foregoing,

IT IS ORDERED denying the motion to exonerate bond (Doc. 82), without

prejudice.

IT IS FURTHER ORDERED that the parties shall file a status report by November

1, 2012, advising whether the Trustee will be substituting in as the Plaintiff and whether the

parties anticipate the claims in this case ultimately being resolved within the bankruptcy

proceeding.

DATED this 24th day of August, 2012.

Case 2:11-cv-02060-JAT Document 84 Filed 08/27/12 Page 2 of 2