Receivership – Stay of Proceedings

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Civil

7^th Circuit Court of Appeals

Officials: FLAUM, KANNE, and SYKES, Circuit Judges

Receivership – Stay of Proceedings

No. 13-3837 Kevin Duff v. Central Sleep Diagnostics

Attorney’s attempt to circumvent receiver by obtaining judgment and submitting a claim after court imposed a stay on all legal proceedings warrants sanctions.

“As we’ve explained, much of Goodman’s briefing is based on his obvious misunderstanding of the Full Faith and Credit Act. We’re particularly troubled, however, by Goodman’s inexplicable insistence that he owed no duty to keep the district judge or the receiver informed of his activities in state court. We emphasize again that the judge granted only limited relief from the stay for Goodman to obtain a judgment and garnish wages, and this limited relief was explicitly conditioned on the receiver’s right to object. As an officer of the court, Goodman surely understood his obligation to respect this order. Instead he ignored it, and he advances an argument that would have us treat its limitations as meaningless.”

Affirmed & Sanctions Ordered

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.