The Business Court addressed what happens when one party in multi-party commercial litigation files bankruptcy — here, Pine Gate Renewables’ Chapter 11 filing — while litigation continues between the remaining parties.
Judge Houston held:
Claims against Pine Gate are stayed under §362.
The stay does not extend to Meridian’s contract and tort claims against Birch Creek.
In Harrington v. Laney (COA24-1071, filed October 15, 2025), Chief Judge Dillon, joined by Judges Murry and Freeman, reversed a Superior Court verdict that had invalidated a deed executed under a power of attorney, holding instead that the plaintiff’s claims were barred by the statute of limitations.
