JPMORGAN CHASE BANK, N.A. v. NEU et al

Filing 44

ORDER that Plaintiffs request for certain relief is GRANTED in part; and it is further ORDERED that Plaintiffs request to deposit the Funds at issue into the Federal Registryis GRANTED, etc. Signed by Judge John Michael Vazquez on 5/24/17. (rg, )

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY

JPMORGAN CHASE BANK, N.A.,

Plaintzf/

Civil Action No. 17-3475
ORDER

v.
RICHARD W. NEU, et al.,
Defendants.

John Michael Vazguez, U.S.D.J.
For the reasons set forth in the Court’s Memorandum Opinion accompanying this Order,
and for good cause shown,
IT IS on this 24th day of May, 2017
ORDERED that Plaintiffs request for certain relief is GRANTED in part; and it is further
ORDERED that Plaintiffs request to deposit the Funds at issue into the Federal Registry
is GRANTED. All of the funds in the accounts listed in Paragraph 26 of the Complaint, D.E. 1,
shall be deposited by the Clerk of the Court into the Registry of this Court, and as soon as possible
thereafter, the Clerk of the Court shall deposit these funds into the interest-bearing Court Registry
Investment System (C.R.I.S.) administered by the Administrative Office of the United States
Courts as Custodian, pursuant to L. Civ. R. 67.l(a)(2); and it is further
ORDERED that the sum of money so invested in the interest bearing C.R.I.S. fund shall
remain on deposit until further order of this Court; and it is further

ORDERED that the Clerk shall deduct a fee for the handling of the funds, as authorized

by the Judicial Conference of the United States and as set by the Director of the Administrative
Office at equal to ten percent (10%) of the income earned for the deduction in the investment so
held and without further order of the Court; and it is further
ORDERED that the Defendants must discuss in good faith the amount of ongoing,

necessary, and ordinary business expenses that the entity Defendants should be entitled to have
access to while the funds are held in the C.R.I.S. The Court encourages the Defendants to agree
to amount that will satisfy the entity Defendants’ needs for several months. If the Defendants
cannot agree to such an amount, Richard may seek relief from the Court on short notice to release
such funds; and it is further
ORDERED that Plaintiffs request to stay the state court matters is GRANTED. The New

York actions, which are currently pending before Surrogate’s Court of the State of New York,
County of New York, file No. 1985-095 1

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and New Jersey action, Neit Holdings US. Corp., et

at. v. IF. Morgan Chase Bank, N.A., et a!., Superior Court ofNew Jersey, Essex County, Chancery
Division, Docket No. ESX-C-91-17, are hereby stayed; and it is further
ORDERED that Defendants cannot institute any other proceeding that may affect the

funds; and it is further
ORDERED that Defendants are directed to file an answer to the Complaint by June 1,
2017, including any cross-claims regarding the underlying substantive disputes; and it is further

The New York action include: (1) In re Amy Nett as Beneficia,y of the Richard W. Nett Isstte
Trust, to Remove Richard W. Nett as Trustee, and for Related Relief (2) In re Amy Neti as
Beneficiary of the Richard W. Neit Issue Trust No. 1, to Remove Richard W Neit as Trustee, and
for Related Relief, (3) In re Amy Nett as Beneficiary of the Richard W Nett Isstte Trttst No. 2, to
Remove Richard W. Neu as Trustee, andfor Related Relief and (4) In re Petition ofAmy Nett to
Compel Richard W. Neu and Warren L. Dean to Accottnt as Tritstees of the Richard W. Neu Issue
Trust.

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ORDERED that after the Defendants file their answers, the Court will (1) set a briefing

schedule as to the second stage of this interpleader action; and (2) address, through an appropriate
motion(s), Plaintiffs request to be discharged from any and all further liability with respect to the
funds and for an award of costs, attorneys’ fees and any other liabilities incurred in connection
with bringing this action; and it is further
ORDERED that a certified copy of this Order shall be personally served upon the Clerk
of the Court, Chief Deputy of Administration, Chief Deputy of Operations or Finance Manager.

John

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ichael Vazquez, U$jJ.