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IN RE PERMALIFE PRODUCTS, LLC

Bankruptcy No. 09-11482 MS. Adversary No. 10-1079 MS.

432 B.R. 503 (2010)

In re PERMALIFE PRODUCTS, LLC, et al., Debtors. PermaLife Products, LLC; New York Rubber Recycling, LLC; Bristow Rubber Recycling, LLC; and Arizona Rubber Recycling, LLC, Plaintiffs, v. TSJ Dirt, LLC; Jerry Morrison; Tim Williams; Don C. Fletcher, Esq.; Lake & Cobb PLC; Jim P. Ma; Bulldog Marketing, LLC d/b/a Bulldog Rubber and Recycling; David Willis; and IDM, LLC, Defendants.

United States Bankruptcy Court, D. New Jersey.

July 8, 2010.

Attorney(s) appearing for the Case

Rabinowitz, Lubetkin & Tully, LLC, Jay L. Lubetkin, Esq., Laura E. Quinn, Esq., Livingston, NJ, Attorneys for Debtors/Debtors-in-Possession/Plaintiffs.

Wasserman, Jurista & Stoltz, P.C., Steven Z. Jurista, Esq., Millburn, NJ, Tiffany & Busco, P.A., Christopher R. Kaup, Esq., J. Daryl Dorsey, Esq., Phoenix, AZ, Attorneys for TSJ Dirt, LLC; Jerry Morrison, and Tim Williams.

Arthur Linderman, Esq., Hackensack, NJ, Attorney for Lake & Cobb, PLC and Don C. Fletcher.

Lake & Cobb, PLC, Joel Sannes, Esq., Don C. Fletcher, Esq., Phoenix, AZ, Attorneys for Don C. Fletcher and Lake & Cobb, PLC.

OPINION

MORRIS STERN, Bankruptcy Judge.

I. INTRODUCTION.

Chapter 11 debtor-plaintiff PermaLife Products, LLC ("PermaLife") and its codebtors1 complain in this adversary proceeding of postpetition stay violations, i.e., acts first to obtain possession of certain equipment said to be property of the estate, and then participation in an auction sale and prompt...

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