Kontrabecki v. Lehman Brothers Holdings Inc.

Filing 17

ORDER by Judge Charles R. Breyer denying except as provided 1 Motion to Stay (be, COURT STAFF) (Filed on 1/18/2006)

Kontrabecki v. Lehman Brothers Holdings Inc.

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Case 3:06-cv-00028-CRB

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Filed 01/18/2006

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Heller Ehrman LLP

PETER J. BENVENUTTI (Bar No. 60566) HELLER EHRMAN LLP 333 Bush Street San Francisco, CA 94104 Telephone: [phone] Facsimile: 415-772-6268 Email: [e-mail] MARK S. KAUFMAN (Admitted Pro Hac Vice) McKENNA LONG & ALDRIDGE LLP 303 Peachtree Street, Suite 5300 Atlanta, GA 30308 Telephone: [phone] Facsimile: [phone] Attorneys for Plaintiff-Appellee Lehman Brothers Holdings Inc.

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA JOHN KONTRABECKI, Defendant-Appellant, v. LEHMAN BROTHERS HOLDINGS INC., Plaintiff-Appellee. In re CENTRAL EUROPEAN INDUSTRIAL DEVELOPMENT COMPANY, LLC d/b/a, CEIDCO, Debtor. Bk. No. 02-30419-11-DM In re THE KONTRABECKI GROUP, LP, Debtor. Bk. No. 02-30421-11-DM On January 12, 2006, the Court heard the Emergency Motion of Defendant-Appellant John Kontrabecki for a Stay Pending Appeal (the "Stay Motion") from the Order of the Bankruptcy Court entered January 4, 2006 (the "MW Order"), directing Mr. Kontrabecki to take various actions
ORDER ON EMERGENCY MOT. STAY PENDING APPEAL RE LIQUIDATION OF MISSION WEST INTERESTS Case No. C-06-00028 CRB

Case No. C 06-00028 CRB On Appeal from Bankruptcy Court Adversary Proceeding No. 03-3264 DM

[PROPOSED] ORDER ON EMERGENCY MOTION OF JOHN KONTRABECKI FOR STAY PENDING APPEAL RE ORDER TO LIQUIDATE MISSION WEST INTERESTS Date: Time: Location: January 12, 2006 2:00 p.m. Courtroom 8 450 Golden Gate Avenue San Francisco, CA 94102

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to liquidate certain of his interests in partnerships affiliated with Mission West Properties, Inc. in order to pay compensatory sanctions awarded to Appellee Lehman Brothers Holdings Inc. ("Lehman") pursuant to an earlier order of the Bankruptcy Court (the "Sanctions Award"). Mr. Kontrabecki and Lehman appeared by counsel, as stated on the record. Upon consideration of the briefs and supporting papers filed in support of and in opposition to the Stay Motion, and the argument of counsel, for the reasons stated by the Court on the record at the hearing, and good cause therefor appearing, IT IS HEREBY ORDERED: 1. 2. The Stay Motion is Denied, except as provided below. The interim stay pending appeal of the MW Order, as ordered by the Court on

January 6, 2006, shall expire at 2:15 pm on January 13, 2006, unless prior to that time Mr. Kontrabecki deposits his passport with the Court's clerk, to be held pending further order of the Court. 3. If Mr. Kontrabecki timely deposits his passport as provided in the preceding

paragraph, the court's stay of the MW Order shall remain effective until 12:00 noon on January 20, 2006, and shall expire at that time except as provided in paragraph 4 below. 4. The stay of the MW Order shall continue in effect pending disposition of Mr.

Kontrabecki's appeal of the MW Order only if, prior to 12:00 noon on January 20, 2006, Mr. Kontrabecki obtains and files with the Court and serves on counsel for Lehman a bond issued by a licensed and qualified bonding company in the amount of $7,000,000 in favor of Lehman, conditioned on the disposition of Mr. Kontrabecki's appeal from the MW Order. The bond must be on customary terms acceptable to Lehman or approved by the Court, and must provide that, in the event Mr. Kontrabecki's appeal of the MW Order is resolved against him, the bonding company shall forthwith pay Lehman the full unpaid balance of the Sanctions Award, plus interest, costs and legal fees as permitted by law. 5. The Court will rule without further hearing on Lehman's request to dismiss Mr.

Kontrabecki's appeal for lack of jurisdiction and on Mr. Kontrabecki's request for discretionary review. If Mr. Kontrabecki wishes to submit a further brief on that request or on any other issues
ORDER ON EMERGENCY MOT. STAY PENDING APPEAL RE LIQUIDATION OF MISSION WEST INTERESTS Case No. C-06-00028 CRB

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concerning his appeal, he shall do so by papers filed and served by noon on January 17, 2006. Lehman may file and serve a response by noon on January 19, 2006. Lehman's request to dismiss the appeal and Mr. Kontrabecki's request for discretionary review shall be deemed submitted (a) at noon on January 17, 2006, if Mr. Kontrabecki fails to file additional papers by that time, or (b) upon the filing of (or expiration of the time for) Lehman's reply should Mr. Kontrabecki timely file an additional brief.

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January 17, 2006 Dated: _________________

________________________________________ UNITED STATES DISTRICT JUDGE

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Approved as to form: Law Offices of Steven F. Gruel Farella Braun + Martell LLP _________________________________ Attorneys for Appellee John Kontrabecki

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ORDER ON EMERGENCY MOT. STAY PENDING APPEAL RE LIQUIDATION OF MISSION WEST INTERESTS Case No. C-06-00028 CRB

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