In re J.S. II, LLC (Bankruptcy Court, ND IL ED)

In re J.S. II, L.L.C.,(Bkrtcy.N.D.Ill.)

Bankruptcy – Pursuit of postpetition action for same conduct underlying proof of claim violated automatic stay.

Home buyers who had filed a proof of claim in bankrupt real estate developers’ jointly administered Chapter 11 cases, based on various latent defects allegedly discovered in the homes, violated the automatic stay when, after withdrawing this proof of claim, they commenced a state court action against the debtors, based on the same prepetition conduct underlying their withdrawn proof of claim, while the debtors’ bankruptcy cases remained open. The home buyers’ contention that the state court action concerned only misconduct occurring postpetition, such that the stay did not apply, was belied by the fact that the allegations of their state court complaint mirrored those in the proof of claim.

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