The opinion of the court was delivered by: Present: The Honorable Philip S. Gutierrez, United States District Judge
Wendy K. Hernandez Not Present n/a
Deputy Clerk Court Reporter Tape No.
Attorneys Present for Plaintiff(s):
Attorneys Present for Defendant(s):
Proceedings: (In Chambers) Order to Show Cause
The Plaintiffs in Downey Surgical Clinic, Inc. v. Ingenix, Inc., et al., CV 09-5457 PSG (CTx) filed an Amended Class Action Complaint against various Defendants on May 7, 2010, including Defendants Allied Holdings Employee Welfare Benefit Plan and Allied Holdings, Inc.
Dkt. # 63. On May 31, 2012, counsel for several Defendants filed a notice indicating that an involuntary chapter 11 petition was filed against Defendant Allied Systems Holdings, Inc. (f/k/a Allied Holdings, Inc.) on May 17, 2012. See Dkt. # 142; 11 U.S.C. § 101 et seq.
Under section 362(a), a chapter 11 petition operates as an automatic stay of, inter alia: (1) the commencement or continuation of a "judicial, administrative, or other action or proceeding" against the Debtor (11 U.S.C. § 362(a)(1)); (ii) acts to "obtain possession of property" of the Debtor's estate (11 U.S.C. § 362(a)(3)); and (iii) acts to "collect, assess, or recover a claim" against the Debtor arising prior to the Petition Date (11 U.S.C. § 362(a)(6)). Accordingly, Plaintiffs are ordered to show cause why this action should not be stayed until resolution of Defendant Allied Systems Holdings, Inc.'s pending chapter 11 petition. Plaintiffs may file a response to this OSC no later than September 26, 2012.
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