Bank of America, N.A. v. Graf et al

Filing 78

MEMORANDUM AND ORDER - Crown Group's motion for continuance of trial date and related dates and request for expedited consideration (Filing No. 67 ) is granted. A new trial date, a new pre-trial conference date, and new deadlines for various pre-trial submissions under NELR 16.2 will be ordered in a separate Amended Final Progression Order issued by the Court in accordance with this memorandum and order. Ordered by Senior Judge Lyle E. Strom. (TCL )

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·U:S. DlSTRICT ::CUfH
IN THE UNITED STATES DISTRICT COURT'1JISTnr(:T OF H[Ei~}\Sr.A

FOR THE DISTRICT OF NEBRASKA
U.S. BANK NATIONAL
ASSOCIATION, as Trustee,
successor-in-interest to Bank
of America, N.A., as Trustee,
successor to Wells Fargo
Bank, N.A., as Trustee, for
the registered holders of
Wachovia Bank Commercial
Mortgage Trust, Commercial
Mortgage Pass-Through
Certificates, Series 2055C22,

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I J JUN 14 PM 12: 08

OFF h':t, OF ThE CLERK

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Plaintiff,

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8:10CV361

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v.

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DAVID D. GRAF, an individual,
and CROWN GROUP, INC., a
South Dakota corporation,

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MEMORANDUM AND ORDER

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Defendants.

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This matter is before the Court upon defendant Crown
Group, Inc.'s (UCrown Group") motion for continuance of trial date
and related dates and request for expedited consideration (Filing
No. 67).

On October 1, 2010, Omaha Settle Inn Limited Partnership,

Lincoln Settle Inn Limited Partnership,
Partnership,

Bellevue Settle

CB Settle Inn Limited

Inn Limited Partnership,

Altoona

Settle Inn Limited Partnership, Kaukauna Lodging, Inc., Grand Forks
Lodging

Limited

Partnership,

Grand

Forks

Settle

Inn

Limited

Partnership, Lincoln Ventures, LLC, and Seward Lodging Builders,
Inc.

(collectively, udebtors") commenced voluntary petitions for

relief in Nebraska, under chapter 11 of the United States Code, 11

..

u. s. C.

§§

101, et seq. (lead case file number is 10-82870 ("related

bankruptcy cases") ).

As Crown Group provides, there are extensive

connections between the instant case and the related bankruptcy
cases:
Debtors are the same borrowers
identified in plaintiff's amended
complaint, divided into loan groups
Pool I and Pool II.
See Amended
Complaint,
generally.
Plaintiff
asserts that David Graf, the other
defendant in this case, personally
guaranteed most of debtors' loans
from plaintiff.
Id.
Plaintiff
claims that the amounts owed by the
debtors are secured by all or
substantially
all
of
debtors'
assets,
including
the
hotels,
pursuant to ten separate deeds of
trust or mortgages.
Crown Group
provides
vital
and
necessary
management services for all of the
hotels.
See Crown Group's brief in support of its motion for continuance of

trial

date

and

related

dates

and

request

for

expedited

consideration (Filing No. 68 at p. 2-3).
Crown Group requests that this Court modify and amend the
Final Progression Order entered on January 12, 2011, to continue
the trial date currently scheduled for July 12, 2011 through July
13, 2011 for 90 days from that setting, to allow sufficient time
for a Plan to be confirmed in the related bankruptcy cases.
conjunction

with

this

motion,

Crown

Group

also

requests

In
the

continuance of the pre-trial conference presently scheduled for

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June 20, 2011, and the deadlines for various pre-trial submissions
under NELR 16.2.
Such a motion may be granted upon a showing of good
cause.

See Fed. R. Civ. P. 16{b) (4).

Crown Group has shown good

cause, as the confirmation process in the related bankruptcy cases
will have a significant and likely dispositive effect on the
present case.

Much of plaintiff's case against Crown Group is

premised on the management agreements between Crown Group and
debtors.

Counsel for debtors has advised counsel for Crown Group

that they expect to file a Plan and Disclosure Statement by midJune, 2011 for the related bankruptcy cases.
be completed within 90 days.

This process should

Taking into account that plaintiff is

the largest single secured creditor in the related bankruptcy
cases,

and Crown Group's

relationship with and work that

it

performs for the debtors, confirmation of the Plan will likely aid
in the resolution of plaintiff's claims against Crown Group.

IT IS ORDERED:
1. Crown Group's motion for continuance of trial date and
related dates and request for expedited consideration (Filing No.
67) is granted.
2. A new trial date, a new pre-trial conference date, and
new deadlines for various pre-trial submissions under NELR 16.2
will be ordered in a separate Amended Final Progression Order
issued by the Court in accordance with this memorandum and order.

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DATED this 14th day of June, 2011.
BY THE COURT:
/s/ Lyle E.

strom~

LYLE E. STROM, Senior Judge
United States District Court

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