Avenue CLO Fund, Ltd. et al v. Bank of America, N.A., et al

Filing 79

CERTIFIED REMAND ORDER. MDL No. 2106. Signed by MDL (FLSD) on 1/14/14. (Attachments: # 1 Transmittal from FLSD, # 2 1 09-md-02106 Designation of Record, # 3 1 09-md-02106 Dkt. Sheet - flsd, # 4 09-MD-2106 DE 1, 2, 4-30, # 5 0 9-MD-2106 DE 32-36, # 6 09-MD-2106 DE 37 part 1 of 3, # 7 09-MD-2106 DE 37 part 2 of 3, # 8 09-MD-2106 DE 37 part 3 of 3, # 9 09-MD-2106 DE 38, 39, 41-47, 49, 50, # 10 09-MD-2106 DE 51, # 11 09-MD-2106 DE 52-59, 61-65, 68, 70, 72-76, # (1 2) 09-MD-2106 DE 78-84, 86-91, # 13 09-MD-2106 DE 93, 95-103, 106-108, # 14 09-MD-2106 DE 110-115, # 15 09-MD-2106 DE 116-125, 127-129, 132-134, # 16 09-MD-2106 DE 136-140, 142-158, # 17 09-MD-2106 DE 160-162, 164-167, 170-175, 177-190, # ( 18) 09-MD-2106 DE 191-199, 201-215, # 19 09-MD-2106 DE 217-229, 232-247, # 20 09-MD-2106 DE 248, # 21 09-MD-2106 DE 249 part 1 of 2, # 22 09-MD-2106 DE 249 part 2 of 2, # 23 09-MD-2106 DE 251-253, 262-266, 284-287, 300, 301, 310, 319, 326-3 31, # 24 09-MD-2106 DE 335, 336, 338-344, 346-349, # 25 09-MD-2106 DE 350, # 26 09-MD-2106 DE 351-358, # 27 09-MD-2106 DE 360-366, 368-374, # 28 09-MD-2106 DE 375 part 1 of 3, # 29 09-MD-2106 DE 375 part 2 of 3, # 30 09-MD-2106 DE 375 p art 3 of 3, # 31 09-MD-2106 DE 376 part 1, # 32 09-MD-2106 DE 376 part 2, # 33 09-MD-2106 DE 376 part 3, # 34 09-MD-2106 DE 376 part 4, # 35 09-MD-2106 DE 376 part 5, # 36 09-MD-2106 DE 376 part 6, # 37 09-MD-2106 DE 376 part 7, # 38 09-MD-2106 DE 376 part 8, # 39 09-MD-2106 DE 376 part 9, # 40 09-MD-2106 DE 377 part 1, # 41 09-MD-2106 DE 377 part 2, # 42 09-MD-2106 DE 378, # 43 09-MD-2106 DE 379, # 44 09-MD-2106 DE 380, # 45 09-MD-2106 DE 381 part 1, # 46 09-MD-2 106 DE 381 part 2, # 47 09-MD-2106 DE 382 part 1, # 48 09-MD-2106 DE 382 part 2, # 49 09-MD-2106 DE 382 part 3, # 50 09-MD-2106 DE 382 part 4, # 51 09-MD-2106 DE 383 part 1, # 52 09-MD-2106 DE 383 part 2, # 53 09-MD-2106 DE 383 part 3, # 54 09-MD-2106 DE 383 part 4, # 55 09-MD-2106 DE 383 part 5, # 56 09-MD-2106 DE 383 part 6, # 57 09-MD-2106 DE 383 part 7, # 58 09-MD-2106 DE 383 part 8, # 59 09-MD-2106 DE 383 part 9, # 60 09-MD-2106 DE 383 part 10, # 61 09-MD-2106 DE 383 part 11, # 62 09-MD-2106 DE 384 part 1, # 63 09-MD-2106 DE 384 part 2, # 64 09-MD-2106 DE 384 part 3, # 65 09-MD-2106 DE 384 part 4, # 66 09-MD-2106 DE 384 part 5, # 67 09-MD-2106 DE 384 part 6, # 68 09-MD-2106 DE 384 part 7, # ( 69) 09-MD-2106 DE 384 part 8, # 70 09-MD-2106 DE 384 part 9, # 71 09-MD-2106 DE 384 part 10, # 72 09-MD-2106 DE 384 part 11, # 73 09-MD-2106 DE 385 part 1, # 74 09-MD-2106 DE 385 part 2, # 75 09-MD-2106 DE 386 part 1, # 76 09-MD-2106 DE 386 part 2, # 77 09-MD-2106 DE 386 part 3, # 78 09-MD-2106 DE 386 part 4, # 79 09-MD-2106 DE 386 part 5, # 80 09-MD-2106 DE 386 part 6, # 81 09-MD-2106 DE 386 part 7, # 82 09-MD-2106 DE 387 part 1, # 83 09-MD-2106 DE 387 part 2, # 84 09-MD-2106 DE 388, # 85 09-MD-2106 DE 389 part 1, # 86 09-MD-2106 DE 389 part 2, # 87 09-MD-2106 DE 389 part 3, # 88 09-MD-2106 DE 389 part 4, # 89 09-MD-2106 DE 390, 392-394, # 90 1 10-cv-20236 Dkt. Sheet - flsd, # 91 10cv20236 DE #1-27, 29-31, 45, 53, 60-65, 67-70, 73, # 92 1 09-cv-23835 Dkt. Sheet - flsd, # 93 09cv23835 DE 112, 115-126, # 94 09cv23835 DE 130, 134, 135 and 145)(Copies have been distributed pursuant to the NEF - MMM)

Case 1:09-md-02106-ASG Document 249 Entered on FLSD Docket 06/29/2011 Page 1 of 4

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
MASTER CASE NO. 09-2106-MD-GOLD/GOODMAN
In re:
FONTAINEBLEAU LAS VEGAS
CONTRACT LITIGATION
MDL NO. 2106
This document relates to:
ALL ACTIONS
__________________________________/

DEFENDANT BANK OF AMERICA, N.A.’S
CORRECTED NOTICE OF PENDING, REFILED,
RELATED OR SIMILAR ACTIONS
Pursuant to S.D. Fla. L.R. 3.8 and 7.1, and Section 2.15.00 of the Court’s Internal
Operating Procedures, defendant Bank of America, N.A. (“BANA”) notifies the Court of a
related and similar action pending in this District.
Attached as Exhibit A is a copy of the complaint in Soneet Kapila v. Jeffrey Soffer, et al.,
Adv. No. 09-21481-AJC (Bankr. S.D. Fla.) (the “Trustee Action”), an action filed in the United
States Bankruptcy Court for the Southern District of Florida on June 8, 2011. 1 The Trustee
Action is a “similar” action under Section 2.15.00 of the Court’s Internal Operating Procedures
because it “involves subject matter which is a material part of the subject matter of another
action or proceeding . . . pending before this Court.” The Trustee Action involves the same
subject matter as two actions previously transferred to MDL No. 2106: (1) Avenue CLO Fund, et
al. v. Bank of America, N.A., et al.; and (2) Brigade Leveraged Capital Structures Fund, Ltd., et

1

BANA is not a party to the Trustee Action.

Case 1:09-md-02106-ASG Document 249 Entered on FLSD Docket 06/29/2011 Page 2 of 4

al. v. Fontainebleau Resorts, LLC, et al., Adversary No. 11-01130-mkn (Bankr. D. Nev.), a
recently-filed action that is the subject of a May 19, 2011 Judicial Panel on Multidistrict
Litigation Conditional Transfer Order. 2
All three actions involve claims arising out of representations and certifications made by
Fontainebleau to BANA and other lenders in connection with the financing for the development
of the Fontainebleau Casino and Resort under the June 6, 2007 Credit Agreement and
Disbursement Agreement. In the Avenue Action against BANA, the Term Lender Plaintiffs
allege that BANA breached its duties as Disbursement Agent by allowing Fontainebleau to
access loaned funds despite BANA’s alleged knowledge that Fontainebleau could not meet
various conditions precedent under the Credit Agreement and Disbursement Agreement. In the
Brigade action, the same Term Lender Plaintiffs reverse course and allege that Fontainebleau
and various of its affiliates, officers and directors repeatedly made knowingly false and
misleading statements which were intended to, and did, conceal from BANA and the Project’s
lenders (including Plaintiffs) that Fontainebleau could not meet the very same conditions
precedent.
In the Trustee Action, the Fontainebleau Chapter 7 Trustee asserts breach of fiduciary
duty and statutory fraudulent conveyance claims against various Fontainebleau officers and
directors based on allegations identical to the Brigade Plaintiffs’ fraud allegations. 3 Thus, a

2

3

The Brigade action was filed in the District Court of Clark County, Nevada on March 25,
2011, and removed by defendant Crown Services (US), LLC on May 2, 2011 on the ground
that it is “related to the Chapter 7 cases currently pending in the United States Bankruptcy
Court for the Southern District of Florida . . . jointly administered with the bankruptcy case
In re Fontainebleau Las Vegas Holdings, LLC, Case No. 09-21481.” The Brigade Action
was transferred by JPML on May 19, 2011 pursuant to Conditional Transfer Order No. 2
(“CTO No. 2”) (D.E. No. 56). Certain Brigade action parties have filed motions to vacate
CTO No. 2; briefing on those will be completed on June 30, 2011. A true and correct copy
of the Brigade complaint is annexed hereto as Exhibit B.
See Ex. A, ¶¶ 83-85.

2

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central question in each of the Avenue, Brigade and Trustee Actions is whether Fontainebleau
made materially false and misleading representations concerning its financial condition to a
group of lenders under a senior secured credit facility, including BANA (who was also the
lenders’ agent under the credit facility). Accordingly, the Trustee Action is “similar” to the
Avenue and Brigade Actions under Section 2.15.00 of the Court’s Internal Operating Procedures.
Dated: June 29, 2011
Miami, Florida

Respectfully submitted,
By: /s/ David E. Bane
HUNTON & WILLIAMS LLP
David E. Bane
1111 Brickell Avenue, Suite 2500
Miami, Florida 33131
Telephone: [phone]
Facsimile: [phone]
E-mail: [e-mail]
- and O’MELVENY & MYERS LLP
Bradley J. Butwin (pro hac vice)
Jonathan Rosenberg (pro hac vice)
Daniel L. Cantor (pro hac vice)
William J. Sushon (pro hac vice)
7 Times Square
New York, New York 10036
Telephone: [phone]
Facsimile: [phone]
Attorneys for Bank of America, N.A.

3

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CERTIFICATE OF SERVICE
I, Melissa Wangenheim, hereby certify that on June 29, 2011, I served true and correct
copies of the foregoing Defendant Bank of America, N.A.’s Corrected Notice of Pending,
Refiled, Related or Similar Actions by first class mail on the following counsel of record:
David A. Rothstein, Esq.
DIMOND KAPLAN & ROTHSTEIN,
P.A.
2665 South Bayshore Drive,
Penthouse Two-B
Miami, Florida 33133

Kirk Dillman, Esq.
Robert Mockler, Esq.
Rebecca Pilch, Esq.
HENNIGAN DORMAN LLP
865 South Figueroa Street, Suite 2900
Los Angeles, California 90017

Attorneys for Plaintiffs Avenue CLO Fund,
Ltd., et al.

/s/ Melissa Wangenheim
Melissa Wangenheim

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