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 [e-mail]
Bruce Eric Van Dalsem [e-mail]
Chester Wren-Ming Day [e-mail]
D. Michael Underhill [e-mail]
David A. Barrett [e-mail]
Evan A. Parke [e-mail]
George C. Fisher [e-mail]
George Hopkins Guy [e-mail]
Indra Neel Chatterjee [e-mail]
James Earl Towery [e-mail]
Jerome B. Falk [e-mail]
John Phillip Duchemin [e-mail]
Jonathan M. Shaw [e-mail]
Kalama M. Lui-Kwan [e-mail]
Mark A. Weissman [e-mail]
Mark Andrew Byrne [e-mail]
Monte M.F. Cooper [e-mail]
Rachel E. Matteo-Boehm [e-mail]
Randall Garteiser [e-mail]
Roger Rex Myers [e-mail]
Scott Richard Mosko [e-mail]
Sean Alan Lincoln [e-mail]
Sean F. O’Shea [e-mail]
Sean M. SeLegue [e-mail]
Steven Christopher Holtzman [e-mail]
Theresa Ann Sutton [e-mail]
Tyler Alexander Baker [e-mail]
Valerie Margo Wagner [e-mail]
Warrington S. Parker [e-mail]
Yvonne Penas Greer [e-mail]

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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