Citizens Against Corporate Crime v. Lennar Corporation

Filing 13

ORDER signed by District Judge Troy L. Nunley on 6/4/2018 ORDERING This case and all deadlines in place pursuant to the federal rules, the local rules, and the Court's Initial Pretrial Scheduling Order 2 are STAYED pending resolution by the ba nkruptcy court of Lennar's Motion to Reopen; the stay is ENTERED without prejudice to the parties' ability to later amend their pleadings; the stay is ENTERED without prejudice to Defendant's ability to later seek transfer of this matter to the District of Delaware; and the stay is ENTERED without prejudice to the parties' ability to later petition (individually or together) the Court to lift the stay. (Reader, L)

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ROBERT BARNES (S.B. #235919)
[e-mail]
BARNES LAW
22631 Pacific Coast Hwy, Suite 362
Malibu, CA 90265
Telephone: [phone]
Facsimile: [phone]
Attorneys for Relator Citizens
Against Corporate Crime LLC

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DANIEL M. PETROCELLI (S.B. #97802)
[e-mail]
EVAN M. JONES (S.B. #115827)
[e-mail]
DAVID MARROSO (S.B. #211655)
[e-mail]
MEGAN K. SMITH (S.B. #307381)
[e-mail]
O’MELVENY & MYERS LLP
1999 Avenue of the Stars, 8th Floor
Los Angeles, California 90067-6035
Telephone:
[phone]
Facsimile:
[phone]

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Attorneys for Defendant
Lennar Corporation

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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SACRAMENTO

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Citizens Against Corporate Crime, LLC, as
Relator,

Hon. Troy L. Nunley
Plaintiff,

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Case No. 2:18-cv-01269-TLN-DB

Hon. Deborah Barnes
v.
Lennar Corporation and Does 1 through 100,
inclusive,

JOINT STIPULATION FOR STAY
PENDING RESOLUTION OF
DELAWARE BANKRUPTCY
PROCEEDINGS

Defendants.

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JOINT STIPULATION FOR STAY
CASE NO. 2:18-CV-01269

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This stipulation is made by and between Relator Citizens Against Corporate Crime, LLC

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(“CACC”), on the one hand, and defendant Lennar Corporation (“Lennar”), on the other hand,

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through their respective undersigned counsel of record, with reference to the following facts:

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WHEREAS, on February 24, 2017, Relator commenced this action by filing under seal a

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complaint in the Superior Court of the State of California, County of Sacramento captioned

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Citizens Against Corporate Crime, LLC v. Lennar Corporation and Does 1 Through 100, Case

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No. 34-2017-00208469 (the “State Court Action”). CACC filed under seal a First Amended

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Complaint in the State Court Action on October 24, 2017;

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WHEREAS, on January 24, 2018, the California Superior Court issued an order lifting
the seal on the case (Dkt. 1-1 at 64-65);

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WHEREAS, Lennar was served with the Complaint on April 17, 2018 (Dkt. 1 at 2);

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WHEREAS, on May 17, 2018, Lennar timely filed a Notice of Removal with this Court

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pursuant to 28 U.S.C. §§ 1441, 1446, and 1452(a). Among other things, the Notice of Removal

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notified the Court that Relator’s claims arise in, arise under, and relate to the prior jointly

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administered Chapter 11 bankruptcy cases of LandSource Communities Development LLC and

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certain of its affiliates captioned In re LandSource Communities Development LLC et al.,

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Case No. 08-11111 (Bankr. D. Del.) (the “Chapter 11 Cases”). The Notice of Removal informed

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the Court that Lennar intended to “promptly file” in the bankruptcy court a Motion to Reopen the

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Chapter 11 Cases for the Limited Purpose of Enforcing the Injunction and Release in the Chapter

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11 Plan (see Dkt. 1);

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WHEREAS, the following day, on May 18, 2018, Lennar commenced proceedings in

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Delaware by filing a Motion to Reopen the Chapter 11 Bankruptcy Cases for the Limited Purpose

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of Enforcing the Injunction and Release in the Debtors’ Joint Chapter 11 Plan and Confirmation

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Order (the “Motion to Reopen”) and attached to its Motion to Reopen a [Proposed] Motion to

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Enforce the Injunction and Release in the Debtors’ Joint Chapter 11 Plan and Confirmation

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Order. Lennar’s motions filed with the bankruptcy court are attached to this stipulation as

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Exhibit A (the “Delaware Action”);

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JOINT STIPULATION FOR STAY
CASE NO. 2:18-CV-01269

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WHEREAS, the Delaware Bankruptcy Court (Hon. Carey) has set a hearing on the
Motion to Reopen for July 17, 2018;
WHEREAS, the parties agree it would save judicial resources and avoid the risk of

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inconsistent results in parallel proceedings to allow the Delaware Bankruptcy Court an

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opportunity to hear and rule on Lennar’s Motion to Reopen before proceedings in this Court (if

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any) should proceed;

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WHEREAS, to that end, the parties respectfully jointly request a stay of proceedings in

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this Court pending resolution by the Delaware Bankruptcy Court of Lennar’s Motion to Reopen;

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WHEREAS, this Court has inherent authority to stay this case pending resolution of the

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Delaware Action, see CMAX, Inc. v. Hall, 300 F.2d 265, 268 (9th Cir. 1962);
BASED UPON THE FOREGOING, THE PARTIES HEREBY STIPULATE and
request that the Court enter an Order that:

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1. This case and all deadlines in place pursuant to the federal rules, the local rules,

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and the Court’s Initial Pretrial Scheduling Order (Dkt. 2) are stayed pending

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resolution by the bankruptcy court of Lennar’s Motion to Reopen;

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2. The stay is entered without prejudice to the parties’ ability to later amend their
pleadings;
3. The stay is entered without prejudice to Defendant’s ability to later seek transfer of
this matter to the District of Delaware; and
4. The stay is entered without prejudice to the parties’ ability to later petition
(individually or together) the Court to lift the stay.
IT IS SO STIPULATED.
By: /s/ Robert Barnes (as authorized on 05/31/18)
Robert Barnes
Attorneys for Relator

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By: /s/ David Marroso
David Marroso
Attorneys for Defendant

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JOINT STIPULATION FOR STAY
CASE NO. 2:18-CV-01269

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IT IS SO ORDERED.

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Date: June 4, 2018

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Troy L. Nunley
United States District Judge

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JOINT STIPULATION FOR STAY
CASE NO. 2:18-CV-01269