May 2011
John Stockdale Jr. obtains dismissal of a nondischargability lawsuit
A 50-percent member in a limited liability company filed a motion to lift the automatic stay to continue a state court lawsuit and separately filed a nondischargability lawsuit against the debtor, the other 50-percent member. Mr. Stockdale defeated the motion to lift the automatic stay, prohibiting continuation of the state court litigation. The Bankruptcy Court also granted Mr. Stockdale's motion for summary judgment, dismissing the nondischargability lawsuit against the debtor. As a result of these victories, the Bankruptcy Court entered an order discharging the debtor of more than $1 million in pre-petition liabilities, including those owed to the 50-percent member.