Wallace v. The IM. Group, LLC et al

Filing 22

ORDER granting 21 Letter Motion for Extension of Time to File. Application Granted. So Ordered. (Signed by Judge Vernon S. Broderick on 4/27/21) (yv)

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April 26, 2021 VIA ECF The Honorable Vernon S. Broderick United States District Judge United States District Court 40 Foley Square, Room 415 New York, New York 10007 4/27/2021 Re: Wallace v. The IM. Group, LLC, et al., 20-cv-7610 (VSB) Dear Judge Broderick: We are the attorneys for Plaintiff Carmela Wallace, personal representative of the Estate of Jarad Higgins p/k/a Juice WRLD (the “Estate”), in the above-referenced action against Defendants The IM. Group, LLC and Sean Welch (collectively, “Defendants”). The action concerns claims for breach of fiduciary duty, breach of contract, unjust enrichment, negligence, and an accounting. We write to respectfully request a 14-day extension of the April 28, 2021 deadline for the Estate to file its default judgment application against Defendants – the business managers that controlled and mismanaged Mr. Higgins’s financial affairs before their services were terminated. [Dkt. No. 20.]1 Under the requested extension, the new date for the Estate’s default judgment motion under Rule 4.H. of your Honor’s Individual Rules of Practice in Civil Cases would be May 12, 2021. This is the third extension requested by the Estate, and is necessitated, in part, by the difficulties encountered due to the ongoing pandemic. Given the Defendants have defaulted, this modest request for an extension is not prejudicial to their interests and, for the reasons provided below, will assist in the administration of justice. 1 Defendants provided business management services to Plaintiff’s son, Jarad Higgins p/k/a Juice WRLD, a successful recording artist who tragically died a young man in December 2019. Mr. Higgins’s song Lucid Dreams, which appears on the RIAA-certified Platinum album Goodbye & Good Riddance, is a six-time Platinum single that reached No. 2 on the Billboard Hot 100. Mr. Higgins also performed on more than a dozen other singles that have been either RIAA-certified Platinum or multi-Platinum, as well as numerous singles that have been RIAA-certified Gold. The Honorable Vernon S. Broderick April 26, 2021 Page 2 As we mentioned in our previous letter, our attempts to locate where Mr. Welch is conducting Defendants’ day-to-day operations have not been fruitful. And because Defendants have both defaulted in this litigation, the source of the information the Estate seeks to quantify its damages remains outside of its reach, despite the fiduciary duties that Defendants owed to Mr. Higgins and now owe to the Estate, and despite the documents the Estate obtained from multiple third parties last month. The requested extension is necessary, in part, due to the unexpected departure of an associate of the firm who was principally assisting on this matter, and the need to further consider legal issues concerning the scope of the motion. We apologize for the lateness of this request, but recognized on Friday that it would be necessary. We assure the Court that this requested extension, which is not sought for purposes of delay, will assist the undersigned in preparing an appropriately targeted motion for the Court’s consideration. In particular, as we reported in our previous request, given the absence of the Defendants, we initially thought the default motion should be targeted solely on the accounting claim, which would provide us with additional tools to recover much needed documentation. But we now believe that a motion for a default judgment on liability with respect to the other claims, i.e., breach of fiduciary duty, breach of contract, unjust enrichment, and negligence, is appropriate at this time, which will leave only an inquest for the determination of damages thereafter. This approach will streamline the default judgment process and provide the Estate with additional tools to obtain from Defendants the records crucial for the determination of its damages. If the Estate obtains a judgment and court-ordered accounting, the Court’s attendant enforcement and contempt powers, coupled with the liability on the other claims, should help the Estate expeditiously secure the documents it needs. We thank the Court for its consideration of the requested relief. Respectfully submitted, /s/ Derek A. Williams Derek A. Williams DAW:hs

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