Unreported / Non-Citable
Background
Brigitte Starkey and David Starkey appealed a judgment from Travis County Court at Law No. 1 in a civil case against Diana Hiebler. Judge Todd T. Wong presided over the trial court. The appeal was pending before the Texas Court of Appeals, Third District at Austin.
On June 5, 2026, while their appeal was under submission, the Starkeys filed a suggestion of bankruptcy. This filing triggered the automatic stay provision of federal bankruptcy law, which suspends litigation and appellate proceedings involving the debtor.
The Court’s Holding
The court stayed the appeal pursuant to 11 U.S.C. § 362 and Texas Rule of Appellate Procedure 8.2. The automatic stay, a federal protection that takes effect immediately upon bankruptcy filing, halts most legal proceedings against the debtor pending resolution of the bankruptcy case.
The court emphasized that the stay pauses—rather than dismisses—the appeal. Any party may file a motion to reinstate the appeal once the bankruptcy court lifts the automatic stay or the bankruptcy proceedings conclude. The parties bear responsibility for promptly notifying the appellate court of developments in the bankruptcy case that would permit reinstatement. Failure to provide timely notice of a lifted stay or concluded bankruptcy may result in dismissal of the appeal for want of prosecution.
Key Takeaways
- Bankruptcy filings automatically stay pending appellate proceedings under federal law.
- A stayed appeal is not terminated but suspended pending bankruptcy developments.
- Parties must notify the appellate court when circumstances permit reinstatement.
- Lack of timely notification of stay removal may result in dismissal of the appeal.
Why It Matters
This order demonstrates how federal bankruptcy law supersedes state appellate procedure. When an appellant files for bankruptcy protection, the automatic stay gives the bankruptcy court primary jurisdiction to address the debtor’s assets and liabilities. Appellate proceedings must pause to allow the bankruptcy process to proceed without competing claims and proceedings fragmenting in multiple courts.
For litigants in Texas, this case underscores a critical procedural point: bankruptcy protection brings consequences beyond the bankruptcy court itself. Counsel must track bankruptcy developments closely and maintain communication with appellate courts to preserve appellate rights and avoid involuntary dismissal.