SEE CIVIL PROCEDURE § 1(5) – BANKRUPTCY
The
filing of a Chapter 11 bankruptcy petition in a United States District Court
prevents the High Court from subsequently obtaining jurisdiction over property
of the petitioner. 11 U.S.C. § 362(a). Rainwater v. The Sea Encounter, 3 A.S.R.2d
87.
Since there is neither a
bankruptcy court in American Samoa nor any provision designating American Samoa
as part of any district with a bankruptcy court, there exists no court with
jurisdiction to entertain a bankruptcy action when the debtor's residence,
domicile, principal place of business, and principal assets are in American
Samoa. 11 U.S.C. § 101(49); 28 U.S.C. §
1472. Southwest Marine of Samoa, Inc.,
v. S & S Contracting, Inc., 5 A.S.R.2d 70.
The
acknowledged unfairness to a creditor in the Territory who must travel to the
United States in order to pursue his claim against a debtor in bankruptcy who
is otherwise amenable to suit locally is not enough to overcome the language
and policy of the statute requiring the consolidation of claims against a
bankrupt debtor. 11 U.S.C. § 362. Southwest Marine of Samoa, Inc., v. S & S
Contracting, Inc., 5 A.S.R.2d 70.
A bankruptcy court which has
acquired jurisdiction over a debtor and his legal rights and obligations may
issue a judgment which is binding in
Judgments obtained or other actions taken in violation of a stay in bankruptcy are void and of no effect. Lutali v. Pedro, 27 A.S.R.2d 73.
SEE CIVIL PROCEDURE § 11(3) – STAY OF PROCEEDINGS
The filing of a Chapter 11 bankruptcy petition in a United States District Court automatically stays proceedings against the petitioner in the High Court of American Samoa. 11 U.S.C. § 362(a). Rainwater v. The Sea Encounter, 3 A.S.R.2d 87.
Automatic stay of suits against bankruptcy petitioner does not operate to stay proceedings against solvent co-defendants. 11 U.S.C. § 362. Monte Kaho v. Ron Pritchard Ground Services, Inc., 4 A.S.R.2d 40.
The automatic stay provided in the Bankruptcy Act differs from an injunction or temporary restraining order only in that the stay becomes binding without an affirmative act of the bankruptcy court. 11 U.S.C. § 362(d)&(e). Southwest Marine of Samoa, Inc., v. S & S Contracting, Inc., 5 A.S.R.2d 70.
The language and history of the automatic stay provided in the Bankruptcy Act imply that Congress intended for the stay to apply wherever Congress had the power to make it apply, without limitation. 11 U.S.C. § 362. Southwest Marine of Samoa, Inc., v. S & S Contracting, Inc., 5 A.S.R.2d 70.
The automatic stay in bankruptcy protects both debtor and creditor, by providing debtor a "breathing spell" during which to reorder his financial condition and by ensuring that no single creditor can drain the debtor's assets without judicial attention to the rights of other creditors. 11 U.S.C. § 362. Southwest Marine of Samoa, Inc., v. S & S Contracting, Inc., 5 A.S.R.2d 70.
The automatic stay of any judicial, administrative, or other proceeding against a debtor who has instituted a bankruptcy reorganization extends to proceedings in the High Court of American Samoa. 11 U.S.C. § 362. Southwest Marine of Samoa, Inc., v. S & S Contracting, Inc., 5 A.S.R.2d 70.
Trial court properly held that proceedings before it were automatically stayed when defendant filed bankruptcy petition in another jurisdiction. 11 U.S.C. § 362(a). Southwest Marine of Samoa, Inc., v. S & S Contracting, Inc., 6 A.S.R.2d 62.
Judgments obtained or other actions taken in violation of a stay in bankruptcy are void and of no effect. Lutali v. Pedro, 27 A.S.R.2d 73.
The rule voiding actions in contravention of a stay applies to unlisted creditors, even if the creditor had no notice of the stay. Lutali v. Pedro, 27 A.S.R.2d 73.