Applebaum v. Barad et al

Filing 15

ORDER Granting 14 Stipulation to Stayed Related Matters. See Order for further details. Signed by Chief Judge Miranda M. Du on 5/9/2024. (Copies have been distributed pursuant to the NEF - KMB)

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1 UNITED STATES DISTRICT COURT 2 DISTRICT OF NEVADA 3 4 5 6 7 8 9 10 11 12 13 14 ELI APPLEBAUM, as an individual, Case No.: 2:24-cv-000603-MMD-EJY Plaintiff, v. GERALD BARAD, an individual; ABS MAGIC ENTERPRISE, LLC, a Nevada limited liability company; and DOES 1 through 50, and ROES 1 through X, inclusive; and related case Defendants. ELI APPLEBAUM, as an individual, Plaintiff, v. GERALD BARAD, an individual; ABS SILVERADO ENTERPRISE, LLC, a Nevada limited liability company; and DOES 1 through 50, and ROES 1 through X, inclusive; Case No.: 2:24-cv-000605-MMD-EJY ORDER GRANTING JOINT STIPULATION AND [Proposed] ORDER TO STAY RELATED MATTERS Defendants. 15 16 Plaintiff Eli Applebaum and Defendant Gerald Barad (collectively, the “Parties”), by and 17 through their undersigned counsel, hereby enter into the following stipulation and respectfully 18 submit the following proposed order. 19 WHEREAS: 20 i. On February 9, 2024, Plaintiff Applebaum filed an action in Eighth Judicial District 21 Court, Clark County, Nevada (the “Eighth Judicial District Court”), under the title Eli Applebaum 22 v. Gerald Barad, ABS Magic Enterprise, LLC, et al., No. A-24-886873-B (the “ABS Magic 23 Action”); 24 ii. On February 29, 2024, Plaintiff filed an action in the Eighth Judicial District Court 25 under the title Eli Applebaum v. Gerald Barad, ABS Silverado Enterprise, LLC, et al., No. 26 A-24-888159-B (the “ABS Silverado Action”) (collectively, with the ABS Magic Action, the 27 “Related Actions”); 28 iii. 158274088.1 On March 27, 2024, Defendant Barad removed the Related Actions to this Court; 1 iv. On April 26, 2024, Plaintiff filed motions to remand the Related Actions to the 2 Eighth Judicial District Court (the “Motions to Remand”), to which Defendant Barad’s opposition 3 papers are due on or before May 10, 2024, and to which Plaintiff’s reply papers are due on or 4 before May 17, 2024; 5 v. On April 30, 2024, the Court entered the Reassignment Order in the Related 6 Actions, reassigning the ABS Silverado Action to Chief District Judge Miranda M. Du and 7 Magistrate Judge Elayna J. Youchah; 8 9 10 vi. Plaintiff and Defendant Barad are also parties to the matter of NYLV Investors, LLC v. Applebaum, et al., Index No. 656618/2022, currently pending in the Supreme Court of the State of New York, County of New York (the “New York Action”) 11 WHEREAS: 12 vii. Both the Related Actions and the New York action arise from a wider dispute 13 between two business partners, Plaintiff Applebaum, a resident of Nevada, and Defendant Barad, 14 a resident of New York. (Compare ABS Silverado Compl. ¶¶ 1-2, 7 with ABS Magic Compl. ¶¶ 15 1-2, 7); 16 viii. In the Related Actions, Plaintiff seeks declaratory relief dissolving companies in 17 which he and Barad both own membership interests: ABS Magic Enterprise, LLC (“ABS Magic”) 18 and ABS Silverado Enterprise, LLC (“ABS Silverado”). (Compare ABS Magic Compl. ¶¶ 1-2, 19 30 with ABS Silverado Compl. ¶¶ 1-2, 37). Plaintiff and Defendant are the only members of each 20 company, with both owning 50% of each company. (Compare ABS Magic Compl. ¶¶ 1-2 with 21 ABS Silverado Compl. ¶¶ 1-2); 22 ix. Each of the Related Actions seek, inter alia, declaratory relief directing the sale of 23 the assets of those two companies and distribution of the proceeds of those sales in accordance 24 with their respective operating agreements. (Compare ABS Magic Compl. ¶ 30 with ABS 25 Silverado Compl. ¶ 37). Those properties are: 26 /// 27 /// 28 /// 158274088.1 2 1 a. In the ABS Magic Action, the property in Clark County, Nevada identified 2 as APN 179-28-721-002 (the “ABS Magic Property”), owned by ABS 3 Magic (see ABS Magic Compl. ¶ 12); 4 b. In the ABS Silverado Action, the property in Clark County, Nevada 5 identified as APN 178-10-515-003 (the “ABS Silverado Property”), owned 6 by BA Gibson Development, LLC (“BA Gibson”), an entity in which ABS 7 Silverado is the sole member and manager (see ABS Silverado Compl. ¶¶ 8 18-19); and 9 WHEREAS, 10 11 x. On or about April 15, 2024, BA Gibson, through Plaintiff Applebaum, received a bona fide offer from a non-party buyer for the purchase of the ABS Silverado Property; 12 xi. Should that proposed transaction proceed to closing, ABS Silverado’s most 13 significant asset – the ABS Silverado Property – will have been disposed, thereby rendering much 14 of the ABS Silverado Action moot; 15 xii. Separately, Plaintiff and Defendant Barad have been engaged in negotiations for a 16 global resolution of their dispute, which – if agreed to and consummated – would likely dispose 17 of the remainder of the ABS Silverado Action, the ABS Magic Action, and the New York action; 18 and 19 WHEREAS, the Parties have agreed to seek a stay of all proceedings in both of the Related 20 Actions for a period of thirty (30) days pending the potential transfer of the ABS Silverado 21 Property and continued settlement negotiations between the Parties; and 22 WHEREAS, the Parties respectfully submit that a thirty-day stay of the Related Actions 23 will not prejudice either party; will streamline the issues before the Court and save substantial 24 judicial resources should the proposed purchase of the ABS Silverado Property close or should the 25 Parties agree to a global resolution of their dispute; will promote the objectives of Rule 1 to ensure 26 a just, speedy, and inexpensive determination of every action, see, e.g., Long v. Gamo Outdoor 27 S.L.U., No. 2:22-cv-00670-JAD-DJA, 2022 WL 2819662, at *2 (D. Nev. July 18, 2022); and that 28 good cause therefore exists for a stay of proceedings; 158274088.1 3 1 2 IT IS HEREBY STIPULATED by and between the Parties, subject to the approval of the Court, that: 3 1. The Related Actions are hereby stayed; 4 2. The stay of proceedings in each of the Related Actions shall be terminated without 5 further order of Court upon the expiration of thirty (30) days from the date on which the Court 6 endorses this stipulation, unless the expiration of that period occurs on a Saturday, Sunday, or legal 7 holiday, upon which the stay shall terminate on the next day that is not a Saturday, Sunday, or 8 legal holiday; 9 3. Except as further ordered by the Court, (i) the deadline for Defendant Barad to file 10 and serve any papers in response to the Motions to Remand shall be seven (7) days after 11 termination of the stay, and (ii) the deadline for Plaintiff to file and serve any reply papers in further 12 support of the Motions to Remand shall be seven (7) days after service of Defendant Barad’s 13 response; 14 4. Except as further ordered by the Court, the deadline for the Parties to submit a 15 discovery plan and scheduling order pursuant to Local Rule 26-1 for each of the Related Actions 16 shall be adjourned until the Court disposes of the Motions to Remand. In the event that the Court 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// 158274088.1 4 1 denies the Motions to Remand, the deadline for the parties to submit that discovery plan and 2 scheduling order shall be twenty-one (21) days after the date of that order. 3 Dated this 8th day of May 2024. 4 5 6 7 8 9 10 11 12 13 Respectfully submitted, KEMP JONES, LLP FOX ROTHSCHILD LLP /s/ Spencer H. Gunnerson SPENCER H. GUNNERSON (8810) MADISON S. FLORANCE (14229) 3800 Howard Hughes Parkway, 17th Floor Las Vegas, Nevada 89169 (702) 385-6000 Tel (702) 385-6001 Fax s.gunnerson@kempjones.com m.florance@kempjones.com /s/ Colleen McCarty MARK J. CONNOT (10010) COLLEEN E. MCCARTY (13186) 1980 Festival Plaza Drive, #700 Las Vegas, Nevada 89135 (702) 262-6899 Tel (702) 597-5503 Fax mconnot@foxrothschild.com cmccarty@foxrothschild.com Attorneys for Plaintiff Eli Applebaum Attorneys for Defendant Gerald Barad 14 9th day of May 2024. SO ORDERED, this _____ 15 16 Miranda M. Du, Chief District Judge UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 17 18 19 20 21 22 23 24 25 26 27 28 158274088.1 5 Case 2:24-cv-00605-MMD-EJY Document 14 Filed 05/08/24 Page 6 of 6 1 CERTIFICATE OF SERVICE 2 Pursuant to Rule 5(b) of the Federal Rules of Civil Procedure, I certify that I am an 3 employee of Fox Rothschild LLP, and that on the 8th day of May 2024, I caused a copy of the 4 foregoing document entitled JOINT STIPULATION AND [Proposed] ORDER TO STAY 5 RELATED MATTERS to be served via electronic transmission via the Court’s CM/ECF filing 6 system. 7 8 9 /s/ Deborah Pressley An Employee of Fox Rothschild LLP 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 158274088.1 6

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