Oakhurst Lodge, Inc. v. Patel CA5
This appeal involves two default judgments. The first default judgment was entered in favor of plaintiffs in February 2013 and was subsequently vacated as void because the underlying default was taken while an automatic bankruptcy stay was in effect. The second default judgment was entered in favor of the defendant and cross-complainant in March 2015 and remained in effect after the trial court denied a motion to set it aside pursuant to Code of Civil Procedure section 437.
On appeal, plaintiffs contend their 2013 judgment should be reinstated and the 2015 judgment against them should be vacated. They argue only a bankruptcy court had jurisdiction to determine the default they obtained violated an automatic bankruptcy stay and, in any event, defendant waived the protections of the automatic stay.
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