[00:00:47] Speaker 01:
Okay, our next case is number 162705, HFL Entertainment Inc.

[00:00:54] Speaker 01:
versus Digital Legal Corporation, Mr. Anderson.

[00:00:57] Speaker 01:
Now, before we begin, because there's a bankruptcy proceeding and the automatic stay, for the moment, all we want to hear argument about is whether the automatic stay applies.

[00:01:08] Speaker 01:
Because if the automatic stay applies, we cannot consider the merits of this case.

[00:01:14] Speaker 00:
May it please the court and good morning.

[00:01:18] Speaker 00:
We became aware yesterday that the employee had filed a bankruptcy petition after the case had been fully briefed and the appendix had been submitted.

[00:01:28] Speaker 00:
No suggestion of bankruptcy was submitted.

[00:01:31] Speaker 00:
That doesn't make any difference.

[00:01:33] Speaker 00:
There is a bankruptcy proceeding and there is an automatic state, right?

[00:01:36] Speaker 00:
I am not quelling with you at all.

[00:01:38] Speaker 00:
I'm not a bankruptcy lawyer.

[00:01:39] Speaker 00:
I don't want to give advice to this court.

[00:01:41] Speaker 00:
But my reading of Section 362 of the Bankruptcy Act yesterday

[00:01:46] Speaker 00:
suggest that the state is automatic, even though the appellee did not send a suggestion of bankruptcy either to the district court or to this court.

[00:01:56] Speaker 01:
So that would seem to preclude us from addressing the merits, right?

[00:01:59] Speaker 01:
I do not disagree with that, Judge Dyck.

[00:02:03] Speaker 01:
Okay, well, unless my colleagues have any questions, it's unfortunate that you didn't learn, we didn't learn about this earlier.

[00:02:12] Speaker 01:
I'm sorry that you had to come from Chicago, but I think that's where we are.

[00:02:16] Speaker 01:
We're going to have to stay proceedings and not hear argument on the merits of the day.

[00:02:20] Speaker 00:
Yes, I am sorry too.

[00:02:21] Speaker 00:
We are obviously well prepared and ready to go today, but I do not disagree with Your Honor's conclusion.

[00:02:28] Speaker 00:
Okay.

[00:02:29] Speaker 00:
Thank you.