Case No. 04-33192 (Jointly Administered).United States Bankruptcy Court, W.D. Kentucky, Louisville Division.
March 21, 2005
ORDER MODIFYING STAY AND INJUNCTION TO ALLOW JERRY COOPER TO PROCEED WITH CIVIL ACTION
THOMAS FULTON, Bankruptcy Judge
This matter having come before the Court upon Petition to Permit Jerry Cooper (“Movant”), to Proceed With His Civil Action (the “Stay Motion”) (DN 972) and the Limited Objection thereto filed by Steven Victor, the Plan Administrator (the “Administrator”); it appearing to the Court that:
1. Cooper has filed a personal injury action in the General Sessions Court of Shelby County, Tennessee (the “State Court”), Docket Number 1030253, (the “Tennessee Action”) alleging claims against on or more of the above-captioned debtors (the “Debtors”) for injuries stemming from an incident that allegedly occurred on May 26, 2003;
2. The Tennessee Action was stayed by the filing of the Debtors’ Chapter 11 Cases;
3. An Order was entered herein on December 2, 2004 (the “Confirmation Order”) confirming the Debtors’ First Amended Joint Liquidating Plan of Reorganization (the “Plan”);
4. Section 362 of the Bankrupcy Code, Article X(C) of the Plan and Paragraph 26 of the Confirmation Order enjoin Cooper from proceeding with the Tennessee Action;
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5. As set forth in the Stay Motion, damages sought by Movant in the Tennesse Action are limited to those damages covered by the Debtors’ general liability insurance carriers; provided,however, that the Debtors admit neither liability nor the validity of any damages with respect to the Action; and
6. As further set forth in the Stay Motion, Movant agrees that he will have no claim against any of the Debtors, or their respective estates;
IT IS HEREBY ORDERED as follows:
A. The automatic stay provision of 11 U.S.C. § 362 and the Plan and Confirmation Order shall be modified for the sole and limited purpose of permitting (a) the Tennessee Action to proceed against the Debtors in the State Court to and including the entry of judgment against the Debtors and/or (b) the Movant to conduct negotiations directly with the Debtors’ applicable insurance carriers; provided, however, that no monetary settlement or judgment associated with the Action, if any, may be enforced against the assets of the Debtors’ estates.
B. The Movant shall have authority to collect all monetary or other forms of remuneration or relief, if any, to which such parties may be determined to be entitled in connection with the Tennessee Action only from the Debtors’ applicable insurance carriers.
C. The Movant shall not have authority to collect any such monetary or other forms of remuneration or relief from the Debtors or the Debtors’ estates.
D. The Debtors shall have no obligation whatsoever to make any distribution of any property to the Movant, including on account of any proof of claim the Movant has filed, could have potentially filed or could potentially file against the Debtors and the Debtors’ estates.
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E. Nothing herein shall be construed to waive any defenses, setoffs, objections or counterclaims that the Debtors or the Debtors’ applicable insurance carriers may have with respect to the Tennessee Action.