UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

NORTHERN DIVISION

MADONNA LEAMON,

Plaintiff,

Case Number 08-14731-BC

v. Honorable Thomas L. Ludington

CENTRAL MICHIGAN DISTRICT

HEALTH DEPARTMENT,

Defendant.

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ORDER STAYING PROCEEDINGS PENDING BANKRUPTCY COURT RULING AND

DIRECTING THE CLERK OF THE COURT TO PROVIDE A COPY OF THIS ORDER

TO THE UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT

OF MICHIGAN, NORTHERN DIVISION

On November 7, 2008, the Mastromarco Firm, on behalf of Plaintiff Madonna Leamon, filed

a two-count complaint against her former employer, Defendant Central Michigan District Health

Department, alleging claims under the Family and Medical Leave Act, 29 U.S.C. §§ 2601 et seq.,

and the Michigan Persons with Disabilities Civil Rights Act, Mich. Comp. Laws §§ 37.1101, et seq.

Plaintiff alleges that Defendant terminated her employment on November 5, 2007, and seeks “back

pay, future pay, future raises and all other benefits provided.” Compl. ¶¶ 10, 38.

Now before the Court is Plaintiff’s motion [Dkt. # 15] seeking to amend the caption and to

substitute the bankruptcy trustee as the plaintiff. Plaintiff represents that on March 31, 2009, she

filed a Chapter 7 bankruptcy case (09-21164) in the Eastern District of Michigan, through the law

firm of Gower Reddick PLC; that Karen Evangelista was appointed as the bankruptcy trustee; and

that the Mastromarco Firm has been retained by the trustee to proceed in this matter.

In its response [Dkt. # 19] to Plaintiff’s motion, Defendant represents that Plaintiff’s

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bankruptcy counsel, Jason P. Gower, filed a claim of exemption on Plaintiff’s behalf, asserting that

this litigation is exempt from the bankruptcy estate under 11 U.S.C. § 522(d)(11)(E). The debtor

valued the litigation at $50,000.00 on Schedule C of her amended schedules on June 28, 2009.

Defendant represents that the trustee has opposed the exemption and that a hearing is scheduled on

October 29, 2009. Defendant contends that if the exemption is allowed, Plaintiff is the real party

in interest, not the bankruptcy trustee.

Based on the above, proceedings will be stayed in this Court, pending a ruling by the

bankruptcy court on the exemption issue. If the bankruptcy court determines that Plaintiff is entitled

to the exemption, then Plaintiff is entitled to pursue this action on her own behalf. On the other

hand, if the bankruptcy court determines that Plaintiff is not entitled to the exemption, then the

question arises as to whether the action is owned by Plaintiff, the trustee, or both, when the damages

that Plaintiff claims may have accrued partially before and partially after the filing of her Chapter

7 petition. Additionally, whether the exemption applies may impact Plaintiff’s eligibility for

Chapter 7 relief based on the means test. See 11 U.S.C. § 707(b)(1).

Accordingly, it is ORDERED that the action is STAYED pending a ruling on the exemption

issue by the bankruptcy court. Plaintiff shall notify the Court, in writing, of a ruling.

It is further ORDERED that the Clerk of the Court is DIRECTED to provide a copy of this

order to the United States Bankruptcy Court for the Eastern District of Michigan, Northern Division.

s/Thomas L. Ludington 

THOMAS L. LUDINGTON

United States District Judge

Dated: October 8, 2009

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PROOF OF SERVICE

The undersigned certifies that a copy of the foregoing order was served

upon each attorney or party of record herein by electronic means or first

class U.S. mail on October 8, 2009.

s/Tracy A. Jacobs 

TRACY A. JACOBS

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