October 2006 - United States Bankruptcy Court Grants Summary Judgment in Client's Favor, deciding issue of first impression.

The United States Bankruptcy Court for the Northern District of Alabama recently granted Summary Judgment in favor of one of our clients, deciding an issue of first impression in Alabama and the Eleventh Circuit. The firm's client, a national loan company, was sued for allegedly violating the automatic stay when it presented a check debtor wrote prepetition for payment. We answered for our client and moved for summary judgment based on § 362(b)(11) of the Bankruptcy Code, which excepts presentment of check from the bankruptcy court's automatic stay. In granting summary judgment for defendant, the Court adopted the recent Eighth Circuit Court of Appeals case Thomas v. Money Mart Financial Services, Inc., 428 F.3d 735 (8th Cir. 2005) as persuasive authority. A copy of the opinion is available upon request. The case was defended by Jay Watkins of the firm's Baldwin County office.