Leonite Capital LLC v. Founders Bay Holdings et al
| Leonite Capital LLC, Craft Capital Management, LLC, Avi Geller, Stephen Kiront and Barry Kiront |
| Founders Bay Holdings and Founders Bay Technologies, Inc. |
| 1:2022cv01547 |
| November 29, 2022 |
| US District Court for the District of Delaware |
| Timothy Belcher Dyk |
| Contract: Other |
| 28 U.S.C. § 1332 Diversity-Other Contract |
| None |
Docket Report
RSS Track this Docket
This docket was last retrieved on June 27, 2023. A more recent docket listing may be available from PACER.
| Document Text |
|---|
| Filing 28 MOTION to Stay Deadlines in the Founders Bay Action and for an Order to Show Cause Regarding Dismissal of the Founders Bay Complaint - filed by Avi Geller, Leonite Capital LLC. (Attachments: #1 Exhibit A-B, #2 Text of Proposed Order)(Stuhlman, Gregory) |
Filing 27
MEMORANDUM ORDER, Plaintiff's Emergency Motion to Appoint Receiver (D.I. #3 ) is DENIED. (See Order for further details). Signed by Judge Timothy Belcher Dyk on 3/1/2023. (twk)
|
| Filing 26 REPLY BRIEF re #3 Emergency MOTION to Appoint Receiver filed by Leonite Capital LLC. (Stuhlman, Gregory) |
| Filing 25 ANSWERING BRIEF in Opposition re #3 Emergency MOTION to Appoint Receiver filed by Founders Bay Holdings, Founders Bay Technologies, Inc..Reply Brief due date per Local Rules is 2/22/2023. (Smyth, Benjamin) |
|
Filing 24
ORAL ORDER, On January 17, 2023, the court held a joint status conference to consider the Emergency Motion to Extend Defendants' Deadline for Responding to Plaintiff's Emergency Motion for Appointment of a Receiver, Or, In the Alternative, Granting the Basile Law Firm, P.C. and McCarter & English, LLP's Leave to Withdraw as Counsel for Defendants. IT IS HEREBY ORDERED that defendants' deadline for responding to plaintiff's emergency motion for appointment of a receiver is extended until February 15, 2023. It is HEREBY FURTHER ORDERED that Leonite Capital, LLC's deadline to file an answer in related case 1:22-cv-01453-TBD is extended until February 15, 2023. The parties should note that the court is not likely to grant future extension motions to respond to plaintiff's emergency motion for appointment of a receiver. Ordered by Judge Timothy Belcher Dyk on 1/17/2023. (twk)
|
| Pro Hac Vice Attorney Jason J. DeJonker for Leonite Capital LLC added for electronic noticing. Pursuant to Local Rule 83.5 (d)., Delaware counsel shall be the registered users of CM/ECF and shall be required to file all papers. (mkr) |
| Filing 23 Letter to The Honorable Timothy Belcher Dyk from Alexandra M. Joyce, Esq. regarding Dial-In Number for January 17, 2023 Teleconference - re 21 Oral Order,,,,, Set Hearings,,,,. (Joyce, Alexandra) |
|
Filing 22
ORDER granting D.I. #20 Motion to Appear Pro Hac Vice. Signed by Judge Timothy Belcher Dyk on 1/13/2023. (apk)
|
|
Filing 21
ORAL ORDER, On January 12, 2023, McCarter & English, LLP and The Basile Law Firm P.C., current counsel for defendants, filed an Emergency Motion to Extend Defendants' Deadline for Responding to Plaintiff's Emergency Motion for Appointment of a Receiver, Or, In the Alternative, Granting the Basile Law Firm, P.C. and McCarter & English, LLP's Leave to Withdraw as Counsel for Defendants. D.I. #17 . Plaintiff Leonite Capital LLC filed an Opposition to defendants' motion. D.I. #19 . A joint status teleconference is scheduled on January 17, 2023, at 2:30 pm to consider the Emergency Motion. The parties shall mutually arrange for a court reporter, coordinate the call, and file the dial-in information on the docket no later than one hour before the teleconference. Defendants' counsel should be prepared to respond to the following: (1) Is counsel seeking leave to withdraw and, if so, what arrangements have defendants made to secure substitute counsel; and (2) If counsel is not seeking leave to withdraw, what is the earliest date defendants are prepared to respond to plaintiff's Motion for Appointment of a Receiver. Ordered by Judge Timothy Belcher Dyk on 1/13/2023. (twk)
|
| Filing 20 MOTION for Pro Hac Vice Appearance of Attorney Jason J. DeJonker - filed by Leonite Capital LLC. (Stuhlman, Gregory) |
| Filing 19 RESPONSE to Motion re #17 Emergency MOTION to Extend Defendants' Deadline for Responding to Plaintiff's Emergency Motion for Appointment of a Receiver, or, in the Alternative, Granting the Basile Law Firm, P.C. and McCarter & English, LLP's Leave to Withdraw as C filed by Leonite Capital LLC. (Stuhlman, Gregory) |
| CORRECTING ENTRY: Motion for Pro Hac Vice, D.I. #20, has been replaced by the request of counsel to reflect the correct State Bar membership of Jason J. DeJonker. (mkr) |
|
Filing 18
ORAL ORDER, On January 12, 2023, McCarter & English, LLP and The Basile Law Firm P.C., current counsel for defendants, filed an Emergency Motion to Extend Defendants' Deadline for Responding to Plaintiff's Emergency Motion for Appointment of a Receiver, Or, In the Alternative, Granting the Basile Law Firm, P.C. and McCarter & English, LLP's Leave to Withdraw as Counsel for Defendants. D.I. #17 . Plaintiff is directed to respond to this motion no later than noon tomorrow (January 13, 2023). Plaintiff is to include an explanation as to why plaintiff opposes defendants' request for a thirty-day extension for filing their Answering Brief in opposition to Plaintiff's Emergency Motion to Appoint a Receiver. Both parties should be aware that this court will not grant a motion to withdraw as counsel unless and until new counsel has been selected and entered an appearance. Ordered by Judge Timothy Belcher Dyk on 1/12/2023. (twk)
|
| Filing 17 Emergency MOTION to Extend Defendants' Deadline for Responding to Plaintiff's Emergency Motion for Appointment of a Receiver, or, in the Alternative, Granting the Basile Law Firm, P.C. and McCarter & English, LLP's Leave to Withdraw as Counsel for Defendants - filed by Founders Bay Holdings, Founders Bay Technologies, Inc.. (Attachments: #1 Text of Proposed Order, #2 Rule 7.1.1 Certification)(Smyth, Benjamin) |
|
Filing 16
SO ORDERED, re D.I. #15 Stipulation and Proposed Order to Extend Time for Briefing on Plaintiff's Motion to Appoint a Receiver by Founders Bay Holdings, Founders Bay Technologies, Inc. Signed by Judge Timothy Belcher Dyk on 01/03/2023. (smg)
|
| Filing 15 STIPULATION and Proposed Order to Extend Time for Briefing on Plaintiff's Motion to Appoint a Receiver by Founders Bay Holdings, Founders Bay Technologies, Inc.. (Silver, Daniel) |
|
Filing 14
SO ORDERED, regarding D.I. #10 Stipulation filed by Leonite Capital LLC. Signed by Judge Timothy Belcher Dyk on 12/16/2022. (apk)
|
| Filing 13 NOTICE of Appearance by Alexandra M. Joyce on behalf of Founders Bay Holdings, Founders Bay Technologies, Inc. (Joyce, Alexandra) |
| Filing 12 NOTICE of Appearance by Benjamin A. Smyth on behalf of Founders Bay Holdings, Founders Bay Technologies, Inc. (Smyth, Benjamin) |
| Filing 11 NOTICE of Appearance by Daniel M. Silver on behalf of Founders Bay Holdings, Founders Bay Technologies, Inc. (Silver, Daniel) |
| Filing 10 Joint STIPULATION and (Proposed) Order to Consolidate Related Cases by Leonite Capital LLC. (Stuhlman, Gregory) |
| Filing 9 SUMMONS Returned Executed by Leonite Capital LLC.Founders Bay Technologies, Inc. served on 12/1/2022, answer due 12/22/2022. (Stuhlman, Gregory) |
| Filing 8 Letter to The Honorable Timothy Belcher Dyk from Gregory E. Stuhlman, Esquire regarding status of service of process - re 7 Order,,,,,,,,,,,,. (Attachments: #1 Exhibit)(Stuhlman, Gregory) |
| Case Reassigned to Judge Timothy Belcher Dyk of the United States Court of Appeals for the Federal Circuit. Please include the initials of the Judge (TBD) after the case number on all documents filed. Associated Cases: 1:22-cv-01453-TBD, 1:22-cv-01547-TBD (rjb) |
| Case Assigned to Judge Gregory B. Williams. Please include the initials of the Judge (GBW) after the case number on all documents filed. (rjb) |
|
Filing 7
ORAL ORDER: On November 10, 2022, the Defendants in this action filed an emergency motion for a temporary restraining order ("TRO") against Plaintiff in this action, Leonite Capital LLC ("Leonite Capital"), and others. C.A. No. 22-1453, D.I. 9. The Court denied the TRO and ordered that Leonite Capital be served with the complaint. C.A. No. 22-1453, D.I. 13. Now pending before the Court in this action, C.A. No. 22-1547, is Plaintiff Leonite Capital's Emergency Motion to Appoint Receiver (D.I. 3), which asks the Court to appoint a receiver "to take possession and control of the business operations, assets, and property of [D]efendants...." D.I. 3 at 1. "[T]he appointment of a receiver is an extraordinary, a drastic and an heroic remedy...." KeyBank Nat'l Ass'n v. Fleetway Leasing Co., 781 F. App'x 119, 122 (3d Cir. 2019) (cleaned up); see also Aviation Supply Corp. v. R.S.B.I. Aerospace, Inc., 999 F.2d 314, 316 (8th Cir. 1993) ("A receiver is an extraordinary equitable remedy that is only justified in extreme situations."). Given that related litigation is already pending in this Court filed by Defendants against Plaintiff Leonite Capital, the Court will not consider Plaintiff Leonite Capital's emergency request for such extraordinary and drastic relief on an ex parte basis. There is no representation or evidence of any attempt to serve Defendants in Plaintiff's motion, D.I. 3, briefing, D.I. 4, or complaint, D.I. 1. Thus, IT IS HEREBY ORDERED that, on or before December 9, 2022, Plaintiff shall file an affidavit of completion of service or written letter with the Court of no more than two (2) pages updating the Court about Plaintiff's efforts to serve Defendants and the status of such service. The Court notes Plaintiff's argument that the Court must appoint a receiver quickly because "there is likely an imminent danger of the Collateral [i.e., Plaintiff's security for a loan to Defendants] diminishing in value during the pendency of this action." D.I. 4 4, 29; see D.I. 4 33.b ("In light of the defaults [by Defendants on their loan obligations], if the Receiver is not appointed to take control of [Defendant]s' assets, the diminution of the value of the Collateral is certain[.]"). However, in Defendants' action against Plaintiff, Defendants argued that a TRO was required because they feared Plaintiff would sell the Collateral on or after November 13, 2022. No. 22-1453, D.I. 10 at 1. Plaintiff's briefing in this case denies Defendants' prior allegations and states that Plaintiff will respond to those allegations "in due course...." D.I. 4 15. Plaintiff's lack of urgency in responding to Defendants' prior filed claims in C.A. No. 22-1453 suggests to the Court that there is likewise no reason for the Court to consider Plaintiff's motion on an expedited basis. Therefore, IT IS HEREBY FURTHER ORDERED that briefing on Plaintiff's Emergency Motion to Appoint Receiver (D.I. 3) shall proceed according to the briefing schedule set forth in Local Rule 7.1.2. ORDERED by Judge Gregory B. Williams on 12/2/22. (ntl)
|
| Remark: Exit copies to Duty Judge (GBW). (nmg) |
| Filing 6 DECLARATION re #3 Emergency MOTION to Appoint Receiver , #4 Opening Brief in Support (Robert L. Stevens) by Leonite Capital LLC. (Attachments: #1 Exhibit A)(Brown, Paul) |
| Filing 5 DECLARATION re #3 Emergency MOTION to Appoint Receiver , #4 Opening Brief in Support (Avi Geller) by Leonite Capital LLC. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Exhibit C, #4 Exhibit D, #5 Exhibit E, #6 Exhibit F)(Brown, Paul) |
| Filing 4 OPENING BRIEF in Support re #3 Emergency MOTION to Appoint Receiver filed by Leonite Capital LLC.Answering Brief/Response due date per Local Rules is 12/14/2022. (Brown, Paul) |
| Filing 3 Emergency MOTION to Appoint Receiver - filed by Leonite Capital LLC. (Attachments: #1 Text of Proposed Order)(Brown, Paul) |
| Filing 2 Notice, Consent and Referral forms re: U.S. Magistrate Judge jurisdiction. (mpb) |
| Filing 1 COMPLAINT filed against Founders Bay Holdings, Founders Bay Technologies, Inc. ( Filing fee $ 402, receipt number ADEDC-4014436.) - filed by Leonite Capital LLC. (Attachments: #1 Exhibit A, #2 Exhibit B, #3 Exhibit C, #4 Exhibit D, #5 Exhibit E, #6 Exhibit F, #7 Civil Cover Sheet)(mpb) |
| No Summons Issued. (mpb) |
Access additional case information on PACER
Use the links below to access additional information about this case on the US Court's PACER system. A subscription to PACER is required.
Access this case on the Delaware District Court's Electronic Court Filings (ECF) System
- Search for Party Aliases
- Associated Cases
- Attorneys
- Case File Location
- Case Summary
- Docket Report
- History/Documents
- Parties
- Related Transactions
- Check Status
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
