Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-02589/USCOURTS-cand-3_05-cv-02589-6/pdf.json

Parties Involved:
Nuttery Farms, Inc.
Defendant
Oceantrade S.A.
Plaintiff

Document Text:

United States District Court

For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

OCEANTRADE S.A.,

Plaintiff,

 v.

 NUTTERY FARMS, INC.,

Defendant. /

No. C 05-02589 WHA

ORDER WITHDRAWING 

ORDER TO SHOW CAUSE 

AND STAYING ACTION

Defendant Nuttery Farms, Inc. failed to appear at a case management conference on July

20, 2006. The Court, therefore, issued an order for defendant to show cause for its failure to

appear. Defendant now submits that it has filed for Chapter 7 bankruptcy, which imposes an

automatic stay of this action. The order to show cause is, accordingly, withdrawn. Moreover,

this action is stayed until the termination of the bankruptcy proceedings or until the parties

otherwise agree to dismissal of this action.

Pursuant to 11 U.S.C. 362(a):

[A]n application filed under section 5(a)(3) of the Securities

Investor Protection Act of 1970, operates as a stay, applicable to

all entities, of —

(1) the commencement or continuation, including the issuance or

employment of process, of a judicial, administrative, or other

action or proceeding against the debtor that was or could have

been commenced before the commencement of the case under this

title, or to recover a claim against the debtor that arose before the

commencement of the case under this title.

Case 3:05-cv-02589-WHA Document 32 Filed 08/02/06 Page 1 of 2
United States District Court

For the Northern District of California

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As the Ninth Circuit has explained, “[f]iling a petition in bankruptcy triggers an automatic stay

of actions against the debtor, the creation of an estate, and the appointment of a trustee.” In re

Majewski, 310 F.3d 653, 656 (9th Cir. 2002). 

This action is, therefore, stayed. Contrary to defendant’s wishes, however, the Court

cannot completely give up all monitoring of this action. The parties, therefore, shall submit on

the first of every month a joint submission notifying the Court whether the bankruptcy is still

pending. The parties shall also, of course, notify the Court immediately of a change in the

bankruptcy status of defendant, or if this action is otherwise settled in bankruptcy. 

IT IS SO ORDERED.

Dated: August 2, 2006 WILLIAM ALSUP

UNITED STATES DISTRICT JUDGE

Case 3:05-cv-02589-WHA Document 32 Filed 08/02/06 Page 2 of 2