Rackwise, Inc. v. Archbold

Filing 37

ORDER to SHOW CAUSE signed by Senior Judge William B. Shubb on 7/13/2017: IT IS ORDERED that defendant Guy Archbold appear personally before this court on 7/24/2017 at 01:30 PM in Courtroom 5 (WBS) before Senior Judge William B. Shubb at the above-e ntitled court, located at 501 I Street, Sacramento, CA, 95814, to show cause why he should not be adjudged in contempt of this court's Order of 6/13/2017, and subjected to sanctions, which may include a fine, imprisonment, or both. [See document for further details.] (Kirksey Smith, K)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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RACKWISE, INC., a Nevada
Corporation,

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ORDER TO SHOW CAUSE

Plaintiff,

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CIV. NO. 2:17-797 WBS CKD

v.
GUY ARCHBOLD, an individual,
Defendant.

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----oo0oo----

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Plaintiff Rackwise, Inc. requests that the court order

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certain non-parties to show cause as to why they are not in

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violation of the court’s June 13, 2017 Order.

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served as the President, CEO, and Chairman of Rackwise’s board

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from at least 2011 until the beginning of 2017.

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2017, shareholders allegedly possessing a majority of Rackwise’s

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outstanding stock voted to terminate Archbold as President, CEO,

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and chairman of the board.

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Archbold continued to act as CEO, President, and Chairman of the

Defendant Archbold

On March 23,

After his alleged termination,

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Board of Rackwise, and plaintiff initiated this action against

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defendant, alleging various state law violations for his actions

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before and after his purported termination.

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On June 13, 2017, the court issued an order stating

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that defendant Guy Archbold, his agents, and any party acting in

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concert with him or his agents are enjoined from:
(1) accessing or logging into, or attempting
to access or log into, Rackwise, Inc.’s
account in the U.S. SEC’s online EDGAR filing
system;

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(2) representing himself to anyone as being
an officer, director, or employee of, or
otherwise affiliated with Rackwise, Inc.; and

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(3) acting, attempting to act, or purporting
to act on behalf of Rackwise, Inc.

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(See June 13, 2017 Order 11:24-12:6 (Docket No. 13).)

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On June 26, 2017, plaintiff filed a motion seeking to

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have defendant Archbold, as well as non-parties John Todd,

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Richard A. Ivers, Sherman Henderson, Jonathan A. Shechter, Craig

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Whited, John Kyees, and Jay Schiffman, allegedly acting in

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concert with him, in contempt for violating the court’s June 13

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Order.

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the motion and set the matter for hearing on July 24, 2017.

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Plaintiff has now submitted its proposed orders to show cause and

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related materials.

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On June 30, 2017, the court set a briefing schedule on

(Docket No. 31.)

The court finds that plaintiff has made a sufficient

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showing to compel defendant Archbold to show cause why he should

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not be adjudged in contempt.

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presented, in connection with a lawsuit pending in the Southern

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District of Florida (No. 17-80136-CIV-MIDDLEBROOKS) Archbold

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signed a document dated June 14, 2017, in which he represented

According to the evidence

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himself to be a member of the Board of Directors of Rackwise,

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Inc.

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violation of this court’s Order of June 13, 2017.

If true, it appears that would have been in direct

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The court does not find, however, that plaintiff has

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made a sufficient showing to adjudge John Todd, Richard A. Ivers,

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Sherman Henderson, Jonathan A. Shechter, Craig Whited, John

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Kyees, or Jay Schiffman in contempt of this court’s Order.

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First, they are not parties to this action, and plaintiff has not

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made a sufficient showing that they were on actual notice of this

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court’s June 13, 2017 at the time of their alleged violations.

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Second, this court’s Order only enjoined persons acting in

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concert with Archbold from representing him as being affiliated

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with Rackwise, Inc.

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of Archbold or persons acting in concert with him, from

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representing themselves as being affiliated with or from acting

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on behalf of Rackwise, Inc.

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It did not enjoin anyone else, even agents

IT IS THEREFORE ORDERED that defendant Guy Archbold

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appear personally before this court on July 24, 2017 at 1:30 p.m.

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in Courtroom No. 5 at the above-entitled court, located at 501 I

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Street, Sacramento, CA, 95814, to show cause why he should not be

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adjudged in contempt of this court’s Order of June 13, 2017, and

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subjected to sanctions, which may include a fine, imprisonment,

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or both.

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Dated:

July 13, 2017

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