Pinpoint IT Services, LLC v. Atlas IT Export, LLC (In re Atlas IT Export, LLC)
- Summarized by David Baker , Law Office of David G. Baker
- 11 years 8 months ago
- Citation:
- 1st Cir. BAP No. PR 12-073
- Tag(s):
-
- Ruling:
- The appeal was dismissed for lack of standing on the part of the appellant since it could not demonstrate that it was in any way "aggrieved" by the bankruptcy court's grant of relief from the automatic stay
- Procedural context:
- This was an appeal from an order essentially allowing relief from the automatic stay so that the debtor (or rather, the chapter 7 trustee) could continue litigation in a Puerto Rico court.
- Facts:
- Pre-petition, debtor Atlas It Export and creditor Pinpoint were embroiled in dueling lawsuits, one in Virginia and one in Puerto Rico, that were largely mirror-images of each other; that is, in one, the debtor was the plaintiff and in the other, the debtor was the defendant. Pinpoint was the adversary in both. Atlas filed a chapter 7 petition. The chapter 7 trustee filed a motion for relief from stay, and a stipulation with the debtor, in order to continue the litigation in Puerto Rico, which Pinpoint had commenced. After a hearing (and some procedural maneuvering), the bankruptcy court allowed the request over PInpoint's objection.
On appeal, Pinpoint argued that the stay as to the Virginia action prevented it from litigating its rights. The BAP rejected this argument, holding strongly that the stay does not prevent actions brought by a Debtor from continuing (or, by negative inference, the creditor from defending). Absent some cognizable harm to its rights or pecuniary interests, it was not in any way harmed by relief from stay being granted.
- Judge(s):
- Haines (author), Feeney and Hoffman.
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