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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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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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.

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Plaintiff Eli Applebaum and Defendant Gerald Barad (collectively, the “Parties”), by and

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through their undersigned counsel, hereby enter into the following stipulation and respectfully

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submit the following proposed order.

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WHEREAS:

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i.

On February 9, 2024, Plaintiff Applebaum filed an action in Eighth Judicial District

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Court, Clark County, Nevada (the “Eighth Judicial District Court”), under the title Eli Applebaum

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v. Gerald Barad, ABS Magic Enterprise, LLC, et al., No. A-24-886873-B (the “ABS Magic

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Action”);

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ii.

On February 29, 2024, Plaintiff filed an action in the Eighth Judicial District Court

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under the title Eli Applebaum v. Gerald Barad, ABS Silverado Enterprise, LLC, et al., No.

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A-24-888159-B (the “ABS Silverado Action”) (collectively, with the ABS Magic Action, the

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“Related Actions”);

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iii.
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On March 27, 2024, Defendant Barad removed the Related Actions to this Court;

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iv.

On April 26, 2024, Plaintiff filed motions to remand the Related Actions to the

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Eighth Judicial District Court (the “Motions to Remand”), to which Defendant Barad’s opposition

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papers are due on or before May 10, 2024, and to which Plaintiff’s reply papers are due on or

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before May 17, 2024;

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v.

On April 30, 2024, the Court entered the Reassignment Order in the Related

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Actions, reassigning the ABS Silverado Action to Chief District Judge Miranda M. Du and

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Magistrate Judge Elayna J. Youchah;

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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”)

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WHEREAS:

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vii.

Both the Related Actions and the New York action arise from a wider dispute

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between two business partners, Plaintiff Applebaum, a resident of Nevada, and Defendant Barad,

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a resident of New York. (Compare ABS Silverado Compl. ¶¶ 1-2, 7 with ABS Magic Compl. ¶¶

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1-2, 7);

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viii.

In the Related Actions, Plaintiff seeks declaratory relief dissolving companies in

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which he and Barad both own membership interests: ABS Magic Enterprise, LLC (“ABS Magic”)

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and ABS Silverado Enterprise, LLC (“ABS Silverado”). (Compare ABS Magic Compl. ¶¶ 1-2,

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30 with ABS Silverado Compl. ¶¶ 1-2, 37). Plaintiff and Defendant are the only members of each

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company, with both owning 50% of each company. (Compare ABS Magic Compl. ¶¶ 1-2 with

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ABS Silverado Compl. ¶¶ 1-2);

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ix.

Each of the Related Actions seek, inter alia, declaratory relief directing the sale of

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the assets of those two companies and distribution of the proceeds of those sales in accordance

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with their respective operating agreements. (Compare ABS Magic Compl. ¶ 30 with ABS

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Silverado Compl. ¶ 37). Those properties are:

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a.

In the ABS Magic Action, the property in Clark County, Nevada identified

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as APN 179-28-721-002 (the “ABS Magic Property”), owned by ABS

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Magic (see ABS Magic Compl. ¶ 12);

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b.

In the ABS Silverado Action, the property in Clark County, Nevada

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identified as APN 178-10-515-003 (the “ABS Silverado Property”), owned

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by BA Gibson Development, LLC (“BA Gibson”), an entity in which ABS

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Silverado is the sole member and manager (see ABS Silverado Compl. ¶¶

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18-19); and

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WHEREAS,

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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;

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xi.

Should that proposed transaction proceed to closing, ABS Silverado’s most

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significant asset – the ABS Silverado Property – will have been disposed, thereby rendering much

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of the ABS Silverado Action moot;

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xii.

Separately, Plaintiff and Defendant Barad have been engaged in negotiations for a

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global resolution of their dispute, which – if agreed to and consummated – would likely dispose

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of the remainder of the ABS Silverado Action, the ABS Magic Action, and the New York action;

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and

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WHEREAS, the Parties have agreed to seek a stay of all proceedings in both of the Related

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Actions for a period of thirty (30) days pending the potential transfer of the ABS Silverado

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Property and continued settlement negotiations between the Parties; and

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WHEREAS, the Parties respectfully submit that a thirty-day stay of the Related Actions

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will not prejudice either party; will streamline the issues before the Court and save substantial

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judicial resources should the proposed purchase of the ABS Silverado Property close or should the

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Parties agree to a global resolution of their dispute; will promote the objectives of Rule 1 to ensure

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a just, speedy, and inexpensive determination of every action, see, e.g., Long v. Gamo Outdoor

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S.L.U., No. 2:22-cv-00670-JAD-DJA, 2022 WL 2819662, at *2 (D. Nev. July 18, 2022); and that

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good cause therefore exists for a stay of proceedings;
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IT IS HEREBY STIPULATED by and between the Parties, subject to the approval of the
Court, that:

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1.

The Related Actions are hereby stayed;

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2.

The stay of proceedings in each of the Related Actions shall be terminated without

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further order of Court upon the expiration of thirty (30) days from the date on which the Court

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endorses this stipulation, unless the expiration of that period occurs on a Saturday, Sunday, or legal

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holiday, upon which the stay shall terminate on the next day that is not a Saturday, Sunday, or

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legal holiday;

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3.

Except as further ordered by the Court, (i) the deadline for Defendant Barad to file

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and serve any papers in response to the Motions to Remand shall be seven (7) days after

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termination of the stay, and (ii) the deadline for Plaintiff to file and serve any reply papers in further

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support of the Motions to Remand shall be seven (7) days after service of Defendant Barad’s

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response;

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4.

Except as further ordered by the Court, the deadline for the Parties to submit a

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discovery plan and scheduling order pursuant to Local Rule 26-1 for each of the Related Actions

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shall be adjourned until the Court disposes of the Motions to Remand. In the event that the Court

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denies the Motions to Remand, the deadline for the parties to submit that discovery plan and

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scheduling order shall be twenty-one (21) days after the date of that order.

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Dated this 8th day of May 2024.

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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
[phone] Tel
[phone] Fax
[e-mail]
[e-mail]

/s/ Colleen McCarty
MARK J. CONNOT (10010)
COLLEEN E. MCCARTY (13186)
1980 Festival Plaza Drive, #700
Las Vegas, Nevada 89135
[phone] Tel
[phone] Fax
[e-mail]
[e-mail]

Attorneys for Plaintiff Eli Applebaum

Attorneys for Defendant Gerald Barad

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9th day of May 2024.
SO ORDERED, this _____

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Miranda M. Du, Chief District Judge
UNITED STATES DISTRICT COURT
DISTRICT OF NEVADA

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Case 2:24-cv-00605-MMD-EJY Document 14 Filed 05/08/24 Page 6 of 6

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CERTIFICATE OF SERVICE

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Pursuant to Rule 5(b) of the Federal Rules of Civil Procedure, I certify that I am an

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employee of Fox Rothschild LLP, and that on the 8th day of May 2024, I caused a copy of the

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foregoing document entitled JOINT STIPULATION AND [Proposed] ORDER TO STAY

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RELATED MATTERS to be served via electronic transmission via the Court’s CM/ECF filing

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system.

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/s/ Deborah Pressley
An Employee of Fox Rothschild LLP

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