HERBERT A. ROSS
U.S. Bankruptcy Judge

        The court held a continued preliminary relief from stay hearing on April 11, 1991 on the motion of the State of Alaska, Department of Transportation and Public Facilities (DOT&PF). Part of the controversy involves a nonresidential lease at Anchorage International Airport for a baggage storage facility which was terminated pre-petition. The other part of the controversy involves a law suit in state court alleging discrimination, violation of Alaska procurement statutes, etc., which has been tried in part and is at the appellate stage before the Alaska Supreme Court. There are no disputed factual issues which require     1 ABR 486  a final hearing. Also, debtor has not established that it will probably succeed in keeping the automatic stay in effect so as to require a final hearing. 11 U.S.C. § 362(e).

       Therefore, IT IS ORDERED that,

        1.    NONRESIDENTIAL LEASE - The automatic stay under 11 U.S.C. § 362(a) is lifted, if any exists, which may bar DOT&PF from proceeding with any action to recover possession of the premises at Anchorage International Airport being held by debtor which is the subject of the controversy in state court action between DOT&PR and debtor. There was no stay in effect, in the court's opinion, since the lease had been terminated before the petition was filed in this case, and the matter is thus exempted from the automatic stay under 11 U.S.C. § 362(b)(10) and the premises is not property of the estate under 11 U.S.C. § 541(b)(2). DOT&PF is correct that the notice sent to the state court by a representative of debtor which stated that the automatic stay barred further proceeding in the forcible entry and detainer action was erroneous. If the debtor is entitled to relief from termination of the lease on some equitable grounds available under Alaska law which have not already been raised in state court, this can most effectively be decided in the pending state court action. Cf. In re Castlerock Properties, Inc., 781 F.2d 159, 163 (9th Cir. 1986) and In re Waterkist Corp., 775 F.2d 1089 (9th Cir. 1985).

        2.    PENDING STATE COURT ACTION - The stay is also lifted to the extent necessary to permit the debtor and DOT&PF to pursue in state court the litigation entitled State of Alaska, Department     1 ABR 487  of Transportation and Public Facilities v. Simmeon Bell and Milton Campbell, d/b/a B & C Enterprises and Simmeon Bell and Milton Campbell, d/b/a B & C Enterprises v. State of Alaska, Department of Transportation and Public Facilities, Northwest Airlines, Inc., Markair, Alaska Airlines, United Airlines, and Delta Airlines, Case No. 3AN-90-3502 Civil, and any appellate procedures in connection with that case. The stay is not lifted, however, to permit DOT&PF to execute any judgment it may obtain against property of the debtor or estate, other than the real property formerly leased by debtor from DOT&PF as described in ¶ 1. There is cause under 11 U.S.C. § 362(d)(1) to lift the stay to allow the state court proceedings to continue due to the judicial economy of completing the litigation in state court where it has been tried already. See In re Tucson Estates, Inc., 912 F.2d 1162, 1166 (9th Cir. 1990) and In re Castlerock Properties, Inc.

       DATED:    April 11, 1991.

HERBERT A. ROSS
Bankruptcy Judge

Serve:
Simmeon A. Bell and for partnership debtor, pro se
Philip Weidner, Esq., appearing specially for debtor
Virginia A. Rusch, Asst. A.G. for Alaska (Anchorage)
Jamilia George, Chief Deputy Clerk
U.S. Trustee