Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-casd-3_04-cv-00535/USCOURTS-casd-3_04-cv-00535-0/pdf.json

Nature of Suit Code: 820
Nature of Suit: Copyright
Cause of Action: 17:101 Copyright Infringement

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- 1 - 04cv0535

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF CALIFORNIA

EXCELSIOR COLLEGE,

Plaintiff,

CASE NO. 04CV0535WQH

ORDER

vs.

CHARLES M. FRYE and PROFESSIONAL

DEVELOPMENT SYSTEMS SCHOOL OF

HEALTH SCIENCES, a California

corporation,

Defendants.

Hayes, Judge:

The matters before the Court are: 1) the Motion to extend the stay of all further

proceedings to co-Defendants filed by Defendant Charles M. Frye (# 378); 2) the Ex Parte

application by Defendant Charles M. Frye for an order shortening time (#385); 3) the Motion

for a new trial and other relief by Defendant Charles M. Frye (# 386); 4) the Motion to reduce

damages and provide other relief by Defendant Charles M. Frye (# 387); and 5) the Motion

to conduct limited post-trial discovery by Defendant Charles M. Frye (# 388).

On November 14, 2006, the jury returned a verdict against Defendant Charles M. Frye

and Defendant Professional Development Systems School of Health Sciences. The Court

ordered Plaintiff to prepare a proposed judgment and allowed Defendants time to file

objections to the proposed judgment.

On November 27, 2006, Defendant Charles M. Frye filed a Notice of Chapter 7

Case 3:04-cv-00535-WQH-LSP Document 389 Filed 01/12/07 Page 1 of 3
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- 2 - 04cv0535

Bankruptcy Filing which states in part: 

Defendant Frye ... filed a Petition with the United States Bankruptcy Court,

Central District of California, on November 22, 2006. Attached hereto as

Exhibit 1 is a copy of said three-page Petition. Pursuant to Section 362 of Title

11, Chapter 3, Subchapter IV of the United States Code, the filing of said

Petition “operates as a stay ... of the ... continuation ... of a judicial ... action

or proceeding against the debtor that was ... commenced before the

commencement of the case under this title...”. Therefore the Court is

respectfully requested to stay any further proceedings in the instant action until

said bankruptcy matter is addressed.

Notice of Chapter 7 Bankruptcy Filing, Docket No 378.

Defendant Frye moves the court to extend the stay of all further proceedings to codefendants Professional Development Systems School of Health Sciences and West Haven

University on the grounds that the Court has ruled that there is alter ego liability of Frye for

the acts of those Defendants. Plaintiff opposes extending the stay to all co-defendants.

Defendant Frye contends that the co-defendants are not represented by Defendant Frye and that

Defendant Frye cannot make a motion seeking relief on behalf of the co-defendants. Plaintiff

contends that the automatic stay triggered by a bankruptcy petition does not halt proceedings

against the co-defendants and there are no grounds to extend the stay in this case.

RULING OF THE COURT

The Court finds that Defendant Frye has no standing to move for a stay of these

proceedings on behalf of co-defendants. The automatic stay pursuant to Section 362(a)(1)

applies only to the debtor filing bankruptcy proceedings and not to non-bankrupt codefendants. Cohen v. Stratosphere Corp., 115 F.3d 695, 697 (9th Cir, 1997); Matter of

Lockard , 884 F.2d 1171, 1179 (9th Cir. 1989). Pursuant to Section 362(a)(1) this action is

stayed only as to Defendant Charles M. Frye. 

IT IS HEREBY ORDERED that the action is stayed only as to Defendant Charles M.

Frye until further order of this Court. The parties shall file a report in this matter every 60 days

notifying the Court of the status of the bankruptcy proceedings. Plaintiff is entitled to move

for a partial judgment pursuant to Rule 54(b) of the Federal Rules of Civil Procedure. 

IT IS FURTHER ORDERED that 1) the Motion to extend the stay of all further

proceedings to co-defendants filed by Defendant Charles M. Frye (# 378) is denied; 2) the Ex

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- 3 - 04cv0535

Parte application by Defendant Charles M. Frye for an order shortening time (#385) is denied;

3) the Motion for a new trial and other relief by Defendant Charles M. Frye (# 386) is denied;

4) the Motion to reduce damages and provide other relief by Defendant Charles M. Frye (#

387) is denied; and 5) the Motion to conduct limited post-trial discovery by Defendant

Charles M. Frye (# 388) is denied.

DATED: January 10, 2007

WILLIAM Q. HAYES

United States District Judge

Case 3:04-cv-00535-WQH-LSP Document 389 Filed 01/12/07 Page 3 of 3