Judge: Mary H. Strobel, Case: 21STCV39700, Date: 2023-04-18 Tentative Ruling

Case Number: 21STCV39700    Hearing Date: April 18, 2023    Dept: 82

            Cross-Complainant Grand Pacific Financing Corporation (“Grand Pacific”) moves for appointment of a receiver over Plaintiff Hawthorne Hangar Operations, L.P. (“Hawthorne”). 

            On December 20, 2022, Grand Pacific filed the instant motion for appointment of a receiver and a preliminary injunction.  Hawthorne opposed the motion.  The hearing was continued to April 18, 2023 by stipulation.

On April 7, 2023, Grand Pacific filed a notice of order approving stipulation for limited relief from stay to proceed with state court litigation (“Stipulation”).  The Stipulation was approved by a federal bankruptcy judge in a related bankruptcy action involving Hawthorne.  The stipulation states in pertinent part: "Grand Pacific shall not proceed with its pending motion in the Litigation for the appointment of a receiver until such time as either: (a) this Bankruptcy case is dismissed or (b) further relief from stay is obtained to proceed with the receivership motion in the Litigation."  

            According to the Stipulation, an automatic bankruptcy stay has been issued with respect to Hawthorne, which is the bankruptcy debtor in a Chapter 11 bankruptcy proceeding.  The Stipulation modifies the automatic stay to permit certain litigation activities in this state court action, but it expressly does not permit Grand Pacific to proceed with this motion for appointment of a receiver until the bankruptcy is dismissed or until further relief from stay is obtained.  Grand Pacific does not show that either condition has occurred.  Accordingly, the court cannot rule on the motion for appointment of a receiver and for a preliminary injunction. 

Conclusion

            Grand Pacific’s motion for appointment of receiver and preliminary injunction is taken off calendar.