First Bank of the Lake v. VCJ Estates LLC et al

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA
FIRST BANK OF THE LAKE CIVIL ACTION
VERSUS
VCJ ESTATES LLC, ET AL. NO. 25-00502-BAJ-RLB
RULING AND ORDER
Before the Court is Plaintiffs Motion for Default Judgment (Doc. 14),
seeking a final judgment against all Defendants: VCJ Estates LLC, Victor L.
Gonzales, and Christina N. Breaux.
After the Plaintiff filed the instant IVlotion, Plaintiff filed a Notice of
Bankruptcy (Doc. 19), which notified the Court that Defendants Gonzales and Breaux
filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy
Code, 11 U.S.C. § 101, et. seq., in the United States Bankruptcy Court for the Middle
District of Louisiana. (Doc. 19). An automatic stay for Defendants Gonzales and
Breaux was issued pursuant to Section 362 of the Bankruptcy Code. (Doc. 19-1).
Once a party files for bankruptcy protection, the automatic stay provision
under 11 U.S.C. § 362(a) generally renders other courts without jurisdiction to
determine rights between parties, as conflicts must be resolved by the bankruptcy
court. The stay applies to the commencement or continuation of judicial,
administrative, or other actions against the debtor that were or could have been
commenced before the bankruptcy filing. 11 U.S.C. § 362(a). The scope of the
automatic stay is broad, encompassing almost any type of formal or informal action
Case 3:25-cv-00502-BAJ-RLB Document 20 03/03/26 Page 1 of 3

against the debtor or property of the estate. Burton v. Infinity Capital M^anagenzent,
862 F.3d 740 (2017).
Plaintiff is unaware of any bankruptcy filing by Defendant VCJ Estates LLC,
(Doc. 19 at 1), meaning VCJ Estates LLC is not cloaked by an independent
bankruptcy-related automatic stay. Moreover, the Court is not aware of Defendants
Gonzales and Breaux's automatic stay extending to Defendant VCJ Estates LLC. A
bankruptcy court may invoke the automatic stay to stay proceedings against a
nonbankrupt third-party defendant, where there is such an identity between the
debtor defendant and a third-party defendant that a judgment against the third party
will in effect be a judgment or finding against debtor. Reliant Energy Services, Inc. v.
Enron Canada Corp., 349 F.3d 816, 825 (5th Cir. 2003). Even though Defendants
Gonzales and Breaux are the sole members of third-party Defendant VCJ Estates
LLC (Doc 14-1 at 6-7), a judgment against the LLC is not a judgment against debtor
Defendants Gonzales and Breaux.
That said, the specific relief Plaintiff requests in the instant Motion necessarily
makes it an action against Defendants Gonzales and Breaux, which the Court is
prohibited from doing under 11 U.S.C. § 362(a). Plaintiff requests that the Court
award Plaintiff damages, attorney's fees, and other costs "against all Defendants,
and recognize Plaintiffs security interest in the Gonzales and Breaux's property. (Id.
at 13).
Therefore, the Court lacks jurisdiction to grant the specific relief Plaintiff
requests. Plaintiff may seek relief from the Bankruptcy Court for the Middle District
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of Louisiana, refile the instant Motion after Defendants Gonzales and Breaux s
automatic stay is lifted, or refile the Motion for Default Judgment only as to
Defendant VCJ Estates LLC. Accordingly,
IT IS ORDERED that this Motion for Default Judgment is DENIED
WITHOUT PREJUDICE.
IT IS FURTHER ORDERED that parties shall notify the Court within 30
days of the resolution of the abovementioned bankruptcy proceeding.
Baton Rouge, Louisiana, this <-^Iday of March, 2026
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JUDGE BRIAN A. J|VQ|CSON
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA
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