Muy et al v. Moore et al

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Verit Muy and Mr. Tea, LTD,
Plaintiffs,
v.
Michelle Moore and Michelle Moore, LLC,
Defendants.
Case No. 25-cv-499 (JMB/DJF)
ORDER
This matter is before the Court on Defendants Michelle Moore and Michelle Moore, LLC’s
Suggestion of Bankruptcy and Request for Stay of Proceedings as to Defendant Verit Muy (ECF No.
48) (“Notice”). This case concerns a franchising dispute between Plaintiffs Verit Muy and Mr. Tea,
LTD (the franchisees) and Defendants (the franchisors). (ECF No. 1 at 1-2.) The Notice states that
Mr. Muy has filed for Chapter 13 bankruptcy. 	As a result, Defendants contend this proceeding
should be automatically stayed pursuant to 11 U.S.C. § 362. 	Defendants are plainly mistaken.
Section 362 automatically stays proceedings against debtors who have filed for bankruptcy; it does
not stay proceedings initiated by such debtors. See Brown v. Armstrong, 949 F.2d 1007, 1009-10
(8th Cir. 1991). 	Section 362 is therefore inapplicable to these proceedings because Mr. Muy
initiated these proceedings and Defendants have not pursued any counterclaims against him.
Defendants’ request for a stay is DENIED, and all pretrial schedule deadlines remain in full force
and effect.
IT IS SO ORDERED.
Dated: April 2, 2026 	s/ Dulce J. Foster
Dulce J. Foster
United States Magistrate Judge
CASE 0:25-cv-00499-JMB-DJF Doc. 54 Filed 04/02/26 Page 1 of 1