Joseph v. Stryker Corp. ( 2023 )

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 BINCYMOL JOSEPH, No. 2:18-cv-00370-DJC-CKD 12 Plaintiff, v. 13 ORDER STRYKER CORPORATION, a business 14 entity, CV MEDICAL LLC, and DAVIS TOOL, INC., 15 Defendants. 16 17 18 Defendant COMPVIEW MEDICAL, LLC (“CV MEDICAL”) filed a Notice of 19 Bankruptcy Filing in this matter on May 17, 2023, informing the Court that CV 20 MEDICAL had filed for Chapter 7 on May 11, 2023. (ECF No. 72.) Accordingly, the 21 Court issued a Minute Order staying this matter on May 19, 2023. (ECF No. 74.) The 22 Parties then filed a Stipulation and Proposed Order to Dismiss the Case with Prejudice 23 on May 22, 2023, (ECF No. 75,) which the Court has not reviewed given the stay. CV 24 MEDICAL now asks the Court to lift the stay and dismiss this matter pursuant to the 25 Parties’ stipulation. (ECF No. 76.) 26 When a debtor files a bankruptcy petition, 11 U.S.C. § 362(a) imposes an 27 automatic stay on proceedings against the debtor. The Ninth Circuit has explained 28 that “[t]he automatic stay is self-executing” and “sweeps broadly, enjoining the 1 | commencement or continuation of any judicial, administrative, or other proceedings 2 || against the debtor... Gruntz v. County of Los Angeles (In re Gruntz), 202 F.3d 1074, 3 | 1081-82 (9th Cir. 2000) (en banc). In light of this broad sweep, actions, including 4 | judicial proceedings, “taken in violation of the automatic stay are void.” Id. at 1082. A 5 || party may petition the bankruptcy court for relief from the automatic stay. 11 U.S.C. 6 | § 362(d). However, “because only an order of the bankruptcy court can authorize any 7 | further progress in the stayed proceedings, it follows that the continuation of the 8 | [stayed] proceeding can derive legitimacy only from the bankruptcy court order.” 9 | Gruntz, 202 F.3d at 1082 (quoting Noli v. Comm'r of Internal Revenue, 860 F.2d 1521, 10 | 1525 (9th Cir. 1988)); see also Mataya v. Kissinger (In re Kissinger), 72 F.3d 107, 108 11 | (9th Cir. 1995) (a decision to lift an automatic stay under section 362 is within the 12 | discretion of the bankruptcy court). 13 CV MEDICAL is the debtor in a Chapter 7 proceeding currently ongoing in the 14 | United States Bankruptcy Court for the Western District of Washington. (ECF No. 72.) 15 | This matter is stayed pending resolution of that proceeding, (ECF No. 74,) and only 16 | the bankruptcy court may grant relief from the stay. CV MEDICAL has not indicated 17 | the bankruptcy court has done so. Thus, this Court lacks authority to lift the stay and 18 | dismiss the case. 19 Accordingly, CV MEDICAL’s request to lift stay (ECF No. 76) is hereby DENIED. 20 | Should the Bankruptcy Court lift the stay, the parties may submit any renewed 21 || requests to dismiss this case. 22 23 DA IT |S SO ORDERED. 95 | Dated: _ October 10, 2023 Beek |) obbeatie Hon. Daniel labretta 26 UNITED STATES DISTRICT JUDGE 27 28