Bryant v. Franchini

UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEW MEXICO
In re: 	OTERO COUNTY HOSPITAL 	No. 11-11-13686 JR
ASSOCIATION, INC. (d/b/a
Gerald Champion Regional Medical Center,
d/b/a Mountain View Catering),
Debtor.
DR. FRANK BRYANT,
Plaintiff,
v. 	Adversary No. 11-1202 J
JOHN G. FRANCHINI, New Mexico
Superintendent of Insurance,
Defendant.
ORDER DENYING MOTION TO STRIKE THE STIPULATION OF DISMISSAL
THIS MATTER is before the Court on the Motion of Quorum Health Resources, LLC to
Strike the Stipulation of Dismissal (“Motion to Strike Stipulation of Dismissal”). See Docket No.
21. 	The issues raised in the Motion to Strike Stipulation of Dismissal are inter-related with the
issues raised in the Motion of Quorum Health Resources, LLC to Intervene as Plaintiff Pursuant
to Rule 7054 of the Federal Rules of Bankruptcy Procedure (“Motion to Intervene”). See Docket
No. 8. 	The Court held a final hearing on the Motion to Strike Stipulation of Dismissal and on
the Motion to Intervene on April 2, 2012 and took the matters under advisement.
The Court has denied the Motion to Intervene for the reasons set forth in the Order
Denying Motion of Quorum Health Resources, LLC to Intervene as Plaintiff Pursuant to Rule
7024 of the Federal Rules of Bankruptcy Procedure. See Docket No. 31. A pending motion to
intervene does not automatically preclude the original parties to the lawsuit from agreeing to
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settle.1 The relevant inquiry is whether Quorum Health Resources, LLC’s reasons for objecting
to the Stipulation of Dismissal would be sufficient to constitute an interest requiring intervention.
See Alternative Research and Development Foundation v. Veneman, 262 F.3d 406, 411 (D.C.Cir.
2001)(observing that the relevant inquiry was whether party’s “concerns about the terms of the
stipulated dismissal were sufficient to constitute an interest requiring intervention.”). Quorum
Health Resources, LLC’s request to intervene has been denied. 	Consequently, its Motion to
Strike Stipulation of Dismissal should also be denied.
WHEREFORE, IT IS HEREBY ORDERED that the Motion to Strike Stipulation of
Dismissal is DENIED.
_____________________________________________
ROBERT H. JACOBVITZ
United States Bankruptcy Judge
Date entered on docket: 	April 6, 2012
COPY TO:
David T Thuma
Attorney for Frank Bryant
500 Marquette Ave NW Ste 650
Albuquerque, NM 87102-5309
Robert M. Doughty II
Robert M. Doughty II, PC
Attorney for Frank Bryant
P.O. Box 1569
Alamogordo, NM 88311-1569
1See Eli Lilly and Co. v. Synthon Laboratories, Inc., 538 F.Supp.2d 944, 947 (E.D.Va. 2008)(observing that,
generally, parties can voluntarily dismiss their case “even if a motion to intervene is pending and the potential
intervenor objects[ ]” but suggesting that, in some instances, the court should invoke equitable principles to prevent
the stipulating parties from prejudicing the potential intervenor’s rights)(citation omitted).
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Michael W. Brennan
Brennan & Sullivan PA
Attorney for Superintendent Franchini
128 East DeVargas St
Santa Fe, NM 87501
Paul M. Fish
Attorney for Quorum Health Resources, LLC
PO Box 2168
Albuquerque, NM 87103-2168
Bernard R Given, II
Loeb & Loeb LLP
Attorney for Tort Claimants
10100 Santa Monica Blvd., Suite 2200
Los Angeles, CA 90067-4120
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