Lagrange v. Eagle, Inc., 2:23-cv-00628

Plaintiff Irma Lee LaGrange allegedly contracted mesothelioma from laundering the asbestos-contaminated work clothes of her husband, who worked at Avondale Shipyard between 1973-1996.
The case was initially filed in Louisiana state court but removed to federal court under federal officer jurisdiction (28 U.S.C. § 1442(a)(1)).
After the case's removal, Plaintiff passed away and her children moved to substitute as plaintiffs.
One key subcontractor defendant, Hopeman Brothers, Inc., filed for Chapter 11 bankruptcy in July 2024.
The proceedings as to Hopeman were stayed; subsequently, the court considered whether to stay the entirety of the litigation against all defendants pending the resolution of the bankruptcy proceedings.
Parties submitted memoranda addressing whether the entire case should be stayed until the bankruptcy court resolved Hopeman’s status and related insurance issues.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Should the entire case be stayed due to Hopeman's bankruptcy?	Indefinite stay would cause undue hardship and delay.	Stay protects co-defendants and ensures consistency; propose stay coextensive with bankruptcy court order.	Court grants a limited stay until March 11, 2025, to align with bankruptcy court’s stay, to be reassessed after that period.

Wedgeworth v. Fibreboard Corp., 706 F.2d 541 (5th Cir. 1983) (automatic bankruptcy stays generally do not extend to co-defendants of the debtor)
GATX Aircraft Corp. v. M/V Courtney Leigh, 768 F.2d 711 (5th Cir. 1985) (criteria for discretionary stays involving non-debtors)
Arnold v. Garlock, Inc., 278 F.3d 426 (5th Cir. 2001) (section 362 rarely justifies stays for non-debtor defendants)