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IN RE LOMAS FINANCIAL CORP.

No. 854, Docket 90-5059.

932 F.2d 147 (1991)

In re LOMAS FINANCIAL CORPORATION, et al., Debtors. LOMAS FINANCIAL CORPORATION, Plaintiff-Appellee, v. The NORTHERN TRUST COMPANY; Ralph I. Miller, Esq., Jerry P. Jones, Esq., Thompson & Knight; Michael R. Feagley, Esq., and Mayer, Brown & Platt, Defendants-Appellants.

United States Court of Appeals, Second Circuit.

Decided May 1, 1991.

Attorney(s) appearing for the Case

Kenneth E. Wile, Chicago, Ill. (Michael R. Feagley, Mayer, Brown & Platt, Chicago, Ill., Michael P. Richman, Mayer, Brown & Platt, New York City, of counsel), for defendants-appellants.

Stephen J. Kloepfer (Lowell Gordon Harriss, Laureen F. Bedell, Michael F. Orman, Davis Polk & Wardwell, New York City, of counsel), for plaintiff-appellee.

Before KEARSE, WINTER and ALTIMARI, Circuit Judges.

WINTER, Circuit Judge:

This case involves a "preliminary injunction" issued by a bankruptcy court staying a fraud and misrepresentation action against two corporate officers of the debtor Lomas Financial Corporation ("Lomas"). The bankruptcy court found that the tort suit was effectively an action against the debtor based on a pre-petition claim and also that continued prosecution of the suit would impair the debtor's reorganization efforts. The court therefore concluded...

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