NT, Inc. d.b.a. Natures Touch - Page 4

                                         -4-                                          
               On December 13, 2005, before this Court held a trial of this           
          case, this Court ordered the case stayed on account of the                  
          bankruptcy petition and the automatic stay of 11 U.S.C. sec.                
          362(a)(8) (2000).  On February 15, 2006, the bankruptcy court               
          dismissed petitioner’s bankruptcy case and vacated the automatic            
          stay.  Petitioner moved the bankruptcy court to vacate its order            
          of dismissal.  On March 8, 2006, the bankruptcy court denied                
          petitioner’s motion, stating:  “The debtor [petitioner] failed to           
          appear at two scheduled creditors meetings and such failures were           
          not satisfactorily explained.  In addition, the motion was not              
          served on the trustee or creditors in accordance with Local                 
          Rules.”  On March 22, 2006, this Court ordered that the automatic           
          stay was no longer in effect as to this case.                               
                                     Discussion                                       
               Whether a corporation may engage in litigation in this Court           
          is determined by applicable State law, which here is the law of             
          California.  See Rule 60(c); see also David Dung Le, M.D., Inc.             
          v. Commissioner, 114 T.C. 268, 270-271 (2000), affd. 22 Fed.                
          Appx. 837 (9th Cir. 2001); Condo v. Commissioner, 69 T.C. 149,              
          151 (1977).  On the basis of our review of that law, in                     
          particular Cal. Rev. & Tax. Code secs. 23301 and 23302, we                  
          conclude that petitioner, although it had the capacity to                   
          commence this case upon the filing of its petition with this                
          Court, now lacks the requisite capacity to continue prosecuting             






Page:  Previous  1  2  3  4  5  6  7  8  Next

Last modified: May 25, 2011