Opinion ID: 222453
Heading Depth: 1
Heading Rank: 7

Heading: Palmdale's Relief From Stay Motion in the New York bankruptcy court.

Text: After the BAP decision, Palmdale filed a motion in the New York bankruptcy court for a determination that the stay did not apply, or in the alternative, for relief from stay. On May 17, 2010, the bankruptcy court (Judge Peck) handling Lehman's bankruptcy denied Palmdale's Motion. The court stated that [t]he stay applies and the motion is denied, but seemed to defer its decision because of the Ninth Circuit appeal. Transcript of Hearing at 75, In the Matter of Lehman Brothers Holdings Inc., et al., Nos. 08-13555(JMP); 08-01420(JMP), (Bankr. S.D.N.Y. May 12, 2010) (hereafter Transcript of Hearing). Palmdale appealed the denial of the relief from stay motions to the district court in New York. The district court construed the bankruptcy court's decision as not coming to any independent conclusions as to the scope of the stay. In re Lehman Brothers Holdings, Inc., 435 B.R. 122, 137 (S.D.N.Y.2010). It noted that the written order did not mention the scope of the stay and that such a decision would conflict with the court's intent to defer to the Ninth Circuit. Id. The Second Circuit affirmed this interpretation. Suncal Cmtys. I LLC v. Lehman Commercial Paper, Inc., 402 Fed.Appx. 634, 636 (2d Cir.2010).