District Court Rejects Claims Asserting a Bankruptcy Stay Violation Against Lawyer
Shannon Sprinkle successfully obtained a dismissal in federal court ending litigation that had been fought in multiple forums against multiple parties for more than a decade. Plaintiff’s property was sold in a tax sale. Claims were filed challenging the tax sale, and during the course of the litigation, Plaintiff filed for bankruptcy. Litigation over the property and purported bankruptcy stay violations resulted in appeals that ultimately were heard by the Georgia Supreme Court.While the state court action was on appeal, Plaintiff filed an action in federal court under the All Writs Act to enjoin the Georgia Supreme Court from hearing the appeal. That request was denied. The Georgia Supreme Court then considered the appeal, and as part of its ruling, found that there had been no violation of the automatic stay imposed by Plaintiff’s bankruptcy proceeding.The District Court found that the Georgia Supreme Court’s holding that there was no violation of the automatic stay was binding, and it had no jurisdiction to hear the matter. The District Court held that the Georgia Supreme Court had concurrent subject matter jurisdiction over the questions relating to violation of the automatic stay, and thus, it would not review the Supreme Court’s decision finding the stay had not been violated. The federal court therefore dismissed Plaintiff’s action for lack of subject matter jurisdiction.