Judge Stays All AT&T Claims vs. Goodman, Pending Outcome of Chapter 7 Proceeding

AT&T may not pursue any claims against Goodman Networks for breach of contract, quantum meruit and unjust enrichment pending resolution of Goodman’s Chapter 7 bankruptcy proceeding, said an order from U.S. District Judge Sean Jordan for Eastern Texas in Sherman that was signed Monday and posted Tuesday (docket 4:22-cv-00914). The case is stayed until further order of the court, it said. Under the bankruptcy code’s automatic stay provision, filing a bankruptcy petition “prevents the commencement or continuation of any litigation against the bankruptcy debtor for claims that arose before the petition was filed,” it said. The automatic stay provision applies to bankruptcy petitions initiated under Chapter 7, “such as the one at issue here,” it said. AT&T’s Oct. 25 complaint alleges it invoiced Goodman $1.22 million for high-speed internet, long distance, local and intrastate calling and other services it provided the telecommunications company under four written contracts in 2009, 2017 and 2020, but hasn’t been paid (see 2210260025). The complaint seeks recovery of the unpaid funds, plus 18% in annual interest.