Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_06-cv-01807/USCOURTS-cand-3_06-cv-01807-51/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1331 Fed. Question

---

United States District Court

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

ROYLENE RAY and KELLY CANNON,

individually and on behalf of other similarly

situated,

Plaintiffs,

 v.

BLUEHIPPO FUNDING, LLC,

Defendant. /

No. C 06-01807 JSW

ORDER VACATING MOTIONS

AND PRETRIAL DATES AND

REQUIRING FILING RE EFFECT

OF BANKRUPTCY STAY

Now before the Court is the suggestion of bankruptcy filed by Defendant BlueHippo

Funding, LLC and BlueHippo Capital, LLC (“BlueHippo Defendants”). The notice indicates

that pursuant to section 362 of the Bankruptcy Code, the filing of the bankruptcy petition

operates as a stay of the continuation of these proceedings and that Plaintiff is now precluded

from prosecuting this matter against the BlueHippo Defendants. By operation of 11 U.S.C. §

362(a), the filing of the petition for bankruptcy operates as a STAY as to all actions against the

BlueHippo Defendants.

The Court is also cognizant that there are several motions pending in this matter

regarding approval of the class settlement and related relief, an objection to the motion for

approval and a motion to intervene to stay this matter by a proposed intervenor, as well as a

motion by counsel for the BlueHippo Defendants requesting to withdraw from representation. 

By operation of the stay, these motions are HEREBY TERMINATED, and may be re-noticed at

such time as the stay is lifted. In addition, the current pretrial conference and trial dates of

January 11, 2010 and February 1, 2010, respectively, are HEREBY VACATED.

In addition, by no later than January 15, 2010, the parties to this matter, including

defendant Gateway, Inc., shall file simultaneous briefs explaining what effect, if any, the stay as 

Case 3:06-cv-01807-JSW Document 316 Filed 01/06/10 Page 1 of 2
United States District Court

For the Northern District of California

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

2

to the BlueHippo Defendants has on the case with respect to the remaining defendant. In

particular, the parties should address whether the case may proceed against the remaining

defendant even if issues decided as to the claims raised against them may operate as issue

preclusion with respect to the claims (or the proposed pending settlement) against the

BlueHippo Defendants.

IT IS SO ORDERED.

Dated: January 6, 2010 

JEFFREY S. WHITE

UNITED STATES DISTRICT JUDGE

Case 3:06-cv-01807-JSW Document 316 Filed 01/06/10 Page 2 of 2