Opinion ID: 741895
Heading Depth: 2
Heading Rank: 1

Heading: Young's Bankruptcy

Text: 20 While this appeal and cross-appeal were pending, Young's counsel notified us that Young had sought protection under the Bankruptcy Act. Under 11 U.S.C. § 362(a)(1), a bankruptcy petition operates as an automatic stay ofthe commencement or continuation ... of a judicial ... 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. 21 We directed the parties to advise this court as to their views of the impact of § 362(a)(1) upon this appeal and cross-appeal. Only Mason responded to this order. He argues that Young's bankruptcy does not stay the defendants' appeal because that appeal is not a proceeding against the debtor. Mason further contends that § 362(a)(1) need not stay his cross-appeal with respect to the OTA and Scott because the automatic stay provisions do not apply to non-bankrupt co-defendants. Mason concedes, however, that § 362(a)(1) may stay his cross-appeal with respect to Young. 22 We agree with Mason's assessment. First, this circuit has held that § 362(a)(1) does not prevent a debtor from commencing or continuing his own appeal. Chaussee v. Lyngholm (In re Lyngholm), 24 F.3d 89, 91-92 (10th Cir.1994). Thus, Young's bankruptcy has no affect on our disposition of the appeal brought by Young, Scott, and the OTA. Second, the rule followed by this circuit and the general rule in other circuits is that the stay provision does not extend to solvent codefendants of the debtor. Oklahoma Federated Gold & Numismatics, Inc. v. Blodgett, 24 F.3d 136, 141 (10th Cir.1994); see also Fortier v. Dona Anna Plaza Partners, 747 F.2d 1324, 1330 (10th Cir.1984). Neither Young nor his co-defendants have suggested any reason for us to depart from this rule in this case and, under these circumstances, we do not find departure essential to serve the policies underlying § 362(a)(1). Accordingly, we decide the issues presented by Mason's cross-appeal with respect to the OTA and Scott, but stay further proceedings in the cross-appeal with respect to Young. See Croyden Assocs. v. Alleco, Inc., 969 F.2d 675, 677 (8th Cir.1992) (staying further proceedings with respect to debtor, but deciding the issues raised on appeal with respect to the co-defendants).