LeDuc Gifts & Specialty Products, LLC v. Sachs et al

Filing 243

ORDER ADOPTING REPORT AND RECOMMENDATIONS in Docket No. 233 in 0:15-cv-02743-JRT-DTS and Docket No. 241 in 0:15-cv-02744-JRT-DTS(Written Opinion). Signed by Chief Judge John R. Tunheim on July 24, 2017. Associated Cases: 0:15-cv-02743-JRT-DTS, 0:15-cv-02744-JRT-DTS(HAZ)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA

LEDUC GIFTS & SPECIALTY
PRODUCTS, LLC,
d/b/a Signature USA,

Civil No. 15-2743 (JRT/DTS)

Plaintiff,
v.
ORDER
DANIEL SACHS, DSC PRODUCTS, INC.
and DSC PRODUCTS HOLDING, LLC,
Defendants.

4BRAVA, LLC,

Civil No. 15-2744 (JRT/DTS)
Plaintiff,

v.
DANIEL SACHS, DSC PRODUCTS, INC.
and DSC PRODUCTS HOLDING, LLC,
Defendants.

Adrianna Shannon, Bonnie Smith, SHANNON LAW, LLC, 333 South
Seventh Street, Suite 2830, Minneapolis, MN 55402, for plaintiff.
Bruce L. Gisi, Troy Hutchinson, ROCK HUTCHINSON, PLLP, 120
South Sixth Street, Suite 2050, Minneapolis, MN 55402, Daniel N. Rosen,
PARKER ROSEN, LLC, 123 North Third Street, Suite 888, Minneapolis,
MN 55401, Malte L. L. Farnaes, FARNAES & LUCIO, APC, 135
Liverpool Drive, Suite C, Cardiff, CA 92007, for defendants.

A Report and Recommendation was filed by Magistrate Judge David T. Schultz
on June 29, 2017. No objections have been filed to that Report and Recommendation in
the time period permitted.
Based on the Report and Recommendation of the Magistrate Judge, all the files,
records, and proceedings herein, IT IS HEREBY ORDERED that:
1.

Defendant Sachs is found in contempt of court for his failure to appear as

ordered at the May 24, 2017 hearing, of which contempt he purged himself by appearing
at the June 16, 2017 hearing.
2.

Each Defendant is found in contempt of court for failure to provide the

discovery ordered by this Court in May 2016 and again in May 2017. [Civil 15-2744,
Docket No. 160]. Defendants can purge themselves of contempt by fully complying with
these orders.
3.

Defendant Sachs is found in contempt of court for failing to assist in the

wind up of Three Two Eight’s company affairs by providing financial information and
documents, issuing payments to remaining creditors and distributing additional funds
pursuant to Minn. Stat. Ch. 322B. Sachs has partially purged himself of contempt by
remitting a partial payment of $572,000 to Plaintiffs on June 20, 2017.
4.

Chief Judge John R. Tunheim’s March 30, 2017 Order provided Sachs

three months to execute and file Three Two Eight’s termination papers. Given the
circumstances the Court recognizes that the windup of Three Two Eight will not occur by
June 30, 2017. That deadline is extended to August 31, 2017. Sachs is required to
produce all information necessary to facilitate the windup of Three Two Eight.
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5.

Defendants are found in contempt for failing to pay Plaintiffs’ attorneys’

fees as ordered by the Court [Civil 15-2744. Docket No. 198], of which contempt they
purged themselves by paying the fees on June 19, 2017.
6.

Discovery will be reopened regarding the newly-produced documents and

as concerns the dissolution of Defendant DSC Products Holding, LLC. Discovery is not
stayed because Sachs’s personal bankruptcy and the bankruptcy of Defendant DSC
Products, Inc. have been terminated. The Court will issue a new scheduling order after it
conducts a settlement conference. A separate Order for Settlement Conference will issue
shortly.
7.

As ordered at the hearing, Defendants have provided the Court with

complete access to the document repository “Basecamp” so that the Court can assure
itself that discovery has been completed.
8.

Defendants’ counsel shall review all e-mails in Defendants’ possession for

production to Plaintiffs and/or placement on a privilege log no later than July 14, 2017.

Dated: July 24, 2017
at Minneapolis, Minnesota
s/John R. Tunheim ________
JOHN R. TUNHEIM
Chief Judge
United States District Court

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