Savings Institute Bank & Trust Company v. 48 54 LLC (2011)

ORDER

The defendants' motion to clarify and to strike notification of bankruptcy as to a non-party (# 122.00) is hereby granted.  “It is well-established that a case against a bankrupt debtor and a non-bankrupt debtor, although stayed against the bankrupt debtor, may nevertheless proceed against the non-bankrupt debtor.”  Burritt Interfinancial Bank Corporation v. Wood, 33 Conn.App. 401 (1994).   The bankrupt debtor, Ravenwood Properties LLC, is not a defendant in the present controversy.   According to counsel for the defendants in this case, Ravenwood Properties LLC is a member of 48–52 Hartford Avenue LLC, 56 Hartford Avenue LLC and 58–62 Hartford Avenue LLC. The bankruptcy court for the District of Connecticut has held that the bankruptcy filing of an LLC member does not stay under 11 USC § 362(a) a creditor's action to foreclose a lien on property owned by the LLC. Associates Commercial Corp. v. Rodio, 257 BR 699 (D.Conn.2001).   See Conn. Gen.Stat. § 34–167(a).

While there is limited authority for extending the bankruptcy stay to a non-debtor in special circumstances, the non-debtor must move for the exclusion in the bankruptcy court.  Burritt, supra at 404.   This court has no notice of an extension of the bankruptcy court stay as to the proceeding.

Devine, J.

Devine, James J., J.