The Facebook, Inc. v. Connectu, Inc et al
Filing
755
ORDER by Judge James Ware denying 751 Quinn Emanuel's Miscellaneous Administrative Request for an Order Disbursing Settlement Proceeds in Accordance with Arbitration Award (jwlc4, COURT STAFF) (Filed on 12/21/2010)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
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The Facebook, Inc., et al.,
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NO. C 07-01389 JW
Plaintiffs,
ORDER DENYING QUINN
EMMANUEL’S MOTION FOR ORDER
DISBURSING SETTLEMENT PROCEEDS
IN ACCORDANCE WITH ARBITRATION
AWARD
v.
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Defendants.
For the Northern District of California
United States District Court
ConnectU, Inc., et al.,
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/
Presently before the Court is Quinn Emanuel Urquhart & Sullivan LLP’s (“Quinn Emanuel”)
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Miscellaneous Administrative Request for an Order Disbursing Settlement Proceeds in Accordance
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with Arbitration Award. (hereafter, “Request,” Docket Item No. 751.) On April 4, 2008, Quinn
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Emanuel filed a Notice of Attorney’s Lien over any judgment, settlement, or any other recovery paid
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to Defendants in this action. (Docket Item No. 337.) On November 3, 2008, the Court declined
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Quinn Emanuel’s request that any dispersal of settlement proceeds be made jointly in the name of
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Defendants and the law firm and ordered that the proceeds be delivered in trust to Defendants’
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counsel, Boies, Schiller & Flexner (“BSF”), for its clients and any lawful claimant. (See Docket
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Item Nos. 653, 654.) While the Court declined to take any action with respect to the lien by Quinn
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Emanuel at that time, nothing in the Court’s Order was intended to affect Quinn Emanuel’s right to
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assert its lien in the future. (Docket Item No. 653 at 6.)
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Quinn Emanuel represents that on August 25, 2010, an AAA arbitration panel entered a
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decision awarding Quinn Emanuel its attorney’s fees and interest, to be paid from the escrowed
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settlement proceeds held by BSF. On November 8, 2010, the New York Supreme Court entered an
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order enforcing the arbitral award. (Request ¶¶ 4-5.) Based on that judgment, Quinn Emanuel now
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requests that the Court enter an Order directing BSF to satisfy the arbitral award from the funds held
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in trust within three days. (Id. ¶ 10.)
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The Court finds that Quinn Emanuel’s request is premature because on December 9, 2010,
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Defendants appealed the New York Supreme Court’s judgment enforcing the arbitral award. (Id. ¶
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6.) Thus, there is still an issue as to whether Quinn Emanuel is a lawful claimant to the proceeds
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being held in trust by BSF. Further, Quinn Emanuel has not taken any action that the Court is aware
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of to foreclose on its lien, which was one reason why the proceeds were originally ordered to be
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delivered in trust to BSF. (See Docket Item No. 653 at 6.)
for an Order Disbursing Settlement Proceeds in Accordance with Arbitration Award as premature.
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For the Northern District of California
Accordingly, the Court DENIES Quinn Emanuel’s Miscellaneous Administrative Request
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United States District Court
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Any future action in relation to a claim by Quinn Emanuel on the funds held in trust should be
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accompanied by documentation which shows: (1) all appellate procedures connected with the
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arbitral award have been exhausted and Quinn Emanuel is considered a lawful claimant to the funds
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in trust; and (2) action has been taken on the part of Quinn Emanuel to foreclose on its lien.
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Dated: December 21, 2010
JAMES WARE
United States District Judge
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THIS IS TO CERTIFY THAT COPIES OF THIS ORDER HAVE BEEN DELIVERED TO:
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Alison Paige Buchanan apb@hogefenton.com
Bruce Eric Van Dalsem brucevandalsem@quinnemanuel.com
Chester Wren-Ming Day cday@orrick.com
D. Michael Underhill Munderhill@BSFLLP.com
David A. Barrett dbarrett@bsfllp.com
Evan A. Parke eparke@bsfllp.com
George C. Fisher georgecfisher@gmail.com
George Hopkins Guy hopguy@orrick.com
Indra Neel Chatterjee nchatterjee@orrick.com
James Earl Towery jet@hogefenton.com
Jerome B. Falk jfalk@howardrice.com
John Phillip Duchemin jduchemin@howardrice.com
Jonathan M. Shaw jshaw@bsfllp.com
Kalama M. Lui-Kwan kml@severson.com
Mark A. Weissman mweissman@osheapartners.com
Mark Andrew Byrne markbyrne@byrnenixon.com
Monte M.F. Cooper mcooper@orrick.com
Rachel E. Matteo-Boehm rachel.matteo-boehm@hro.com
Randall Garteiser randy@sftrialattorneys.com
Roger Rex Myers roger.myers@hro.com
Scott Richard Mosko scott.mosko@finnegan.com
Sean Alan Lincoln slincoln@Orrick.com
Sean F. O’Shea soshea@osheapartners.com
Sean M. SeLegue sselegue@howardrice.com
Steven Christopher Holtzman sholtzman@bsfllp.com
Theresa Ann Sutton tsutton@orrick.com
Tyler Alexander Baker Tbaker@fenwick.com
Valerie Margo Wagner vwagner@gcalaw.com
Warrington S. Parker wparker@orrick.com
Yvonne Penas Greer ygreer@orrick.com
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For the Northern District of California
United States District Court
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Dated: December 21, 2010
Richard W. Wieking, Clerk
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By:
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/s/ JW Chambers
Elizabeth Garcia
Courtroom Deputy
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