20-C-6401

Case Name
GCM Partners v. Hipaaline
Case Summary

The plaintiff sought entry of a rule to show cause and a finding of contempt against the debtor and its CEO alleging they violated the court's preliminary injunction.  The debtor's CEO, who was also the debtor's sole officer and director, sought to extend the automatic stay to the plaintiff's claims against her.  Absent extraordinary circumstances the automatic stay afforded a corporate debtor in chapter 15 does not extend to debtor's stockholders, principles, officers, directors and employees.  An exception exists where there is "such identity" between the debtor and third party defendant that the debtor may be the real party defendant and a judgment will in effect be a judgment against the debtor.   The court extended the stay to the CEO's actions prior to the insolvency, but not subsequent actions, reasoning that these actions were so intertwined with the debtor that allowing the case to proceed could impact the insolvency proceedings. 

Filing Date
Bankruptcy Code
Judge
Sara Ellis
Location
Contributor(s)
Name
Joanne Gelfand
Firm
Akerman LLP
Name
Shirley Palumbo
Firm
NextEra Energy Resources