Bankruptcy Judge Stuart Bernstein
Chrysler sold vehicles with steering systems bought from TRW Automotive US LLC under agreements, governed by Michigan law, imposing insurance and indemnification duties in Chrysler’s favor. Prior to bankruptcy Masquat brought a class suit against Chrysler over its defective steering systems. Under their 2010 stipulation Chrysler agreed to relief from stay and Masquat agreed to limit any recovery to insurance coverage. Discovering that there is no insurance, Masquat sought to use any judgment against Chrysler as a predicate to sue TRW. TRW sought a declaration that use of judgment for that purpose violated the stipulation and the court’s April 23, 2010, confirmation order. TRW failed to show prudential standing. The confirmation order does not shield TRW from lawsuits, and TRW was neither a party nor intended beneficiary of the stipulation. The automatic stay never prevented Masquat from suing TRW. Nor did it prevent her from using the judgment for a purpose not concerning Chrysler or its bankruptcy estate. Thus, the stipulation does not bar Masquat from proceeding to judgment against Chrysler as a nominal defendant or using that judgment as a predicate to assert the class’ rights against TRW under non-bankruptcy law.
