Trimec, Inc. v. Zale Corporation
United States District Court for the Northern District of Illinois
150 B.R. 685 (1993)
Relevant factsFree
Zale (defendant), guarantor of joint venture Aeroplex O'Hare's contractual obligations to the City of Chicago, filed for bankruptcy while litigation over the failed airport concession venture was ongoing, triggering an automatic stay as to Zale; the City sought to lift the stay to pursue its counterclaim against Aeroplex O'Hare and others, but Zale argued the stay should extend to all parties since any judgment against Aeroplex O'Hare would effectively bind Zale as guarantor.
IssueFree
Whether, under bankruptcy law, a creditor may be temporarily prevented from proceeding on claims against a principal if an adverse ruling would harm the principal's guarantor.