BUILDERS INC AND MUKESH BHAKTA APPELLANTS v. KRISU HOSPITALITY LLC APPELLEE (2018)

ORDER OF REINSTATEMENT, SEVERANCE, AND ABATEMENT

Now pending before this court is the Unopposed Motion by Appellant Mukesh Bhakta to Sever and Reinstate under TRAP 8.3(b). Appellants, M&L Builders, Inc. and Mukesh Bhakta, appeal from a default judgment in favor of Appellee, Krisu Hospitality, LLC. We abated the appeal on January 2, 2018, upon receiving notice that Bhakta was in bankruptcy. See TEX. R. APP. P. 8.1, 8.2. On April 24, 2018, Bhakta filed a suggestion of bankruptcy, informing this court that his bankruptcy proceeding was dismissed and that M&L Builders was now in bankruptcy. See id. M&L Builders filed for Chapter 7 bankruptcy in the United States Bankruptcy Court for the Eastern District of Texas on February 14, 2018. The proceeding is pending in cause number 18-10044.

Bhakta now moves this court to reinstate the appeal and sever his appeal. Bhakta's motion demonstrates that his bankruptcy stay has been lifted ¹ and that his appeal is severable from the appeal of M&L Builders, now in bankruptcy. See TEX. R. APP. P. 8.3(a), (b); 11 U.S.C. § 362(a); In re Southwestern Bell Tel. Co., 35 S.W.3d 602, 604 (Tex. 2000) (per curiam) (holding that the automatic bankruptcy stay only operates against the debtor and does not operate against co-debtors, co-tortfeasors, or co-defendants). Accordingly, we grant the motion. The appeal is reinstated. Bhakta's appeal is severed into cause number 07-18-00156-CV, where it shall proceed in due course.

M&L Builders's appeal shall remain in cause number 07-17-00424-CV. Pursuant to appellate rule 8.2, M&L Builders's portion of this appeal shall remain abated and all appellate deadlines continue to be suspended until further order of this court. See TEX. R. APP. P. 8.2. For administrative purposes, the appeal will remain removed from our active docket. The parties shall promptly inform this court of the resolution of M&L Builders's bankruptcy proceeding or any other event authorizing reinstatement of the appeal. See id. at 8.3(a).

It is so ordered.

FOOTNOTES

1.   Bhakta filed an uncertified copy of the bankruptcy court's Order of Dismissal with Prejudice for 120 Days with his motion to reinstate. We dispense with the requirement that the movant file a certified copy of the bankruptcy order lifting or terminating the stay. See TEX. R. APP. P. 8.3(a), 2.

Per Curiam