EB Holdings II, Inc. et al v. Illinois National Insurance Company et al, No. 2:2020cv00461 - Document 34 (D. Nev. 2020)
Court Description: ORDER Granting 33 Stipulation re Withdrawing 1 Motion to Withdraw Reference. ORDER Withdrawing 1 Motion to Withdraw Reference. Signed by Judge Kent J. Dawson on 7/7/2020. (Copies have been distributed pursuant to the NEF - JQC)
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EB Holdings II, Inc. et al v. Illinois National Insurance Company et al Doc. 34 Case 2:20-cv-00461-KJD-BNW Document 34 Filed 07/07/20 Page 1 of 12 1 2 3 4 5 6 7 GARMAN TURNER GORDON LLP GREGORY E. GARMAN, ESQ. Nevada Bar No. 6654 Email: ggarman@gtg.legal TALITHA GRAY KOZLOWSKI, ESQ. Nevada Bar No. 9040 Email: tgray@gtg.legal TERESA M. PILATOWICZ, ESQ. Nevada Bar No. 9605 Email: tpilatowicz@gtg.legal 7251 Amigo Street, Suite 210 Las Vegas, Nevada 89119 Tel: (725) 777-3000 Attorneys for EB Holdings II, Inc. 8 9 10 K&L GATES LLP THOMAS E. BIRSIC, ESQ. (Admitted Pro Hac Vice) Email: thomas.birsic@klgates.com PAUL C. FUENER, ESQ. (Admitted Pro Hac Vice) Email: paul.fuener@klgates.com K&L Gates Center 210 Sixth Avenue Pittsburgh, Pennsylvania 15222-2613 Tel: (412) 355-6500 GHANDI DEETER BLACKHAM SHARA L. LARSON, ESQ. Nevada Bar No. 7786 Email: shara@ghandilaw.com 725 S. 8th St., Suite 100 Las Vegas, Nevada 89101 Tel: (702) 878-1115 Attorneys for QXH II, Inc. 11 12 UNITED STATES DISTRICT COURT 13 DISTRICT OF NEVADA 14 In re: Chapter 11 15 EB HOLDINGS II, INC., Case No.: BK-S-19-16364-MKN 16 Debtor. 17 18 Adv. Pro. No. 20-01010-MKN Case No. 2:20-cv-00461-KJD-BNW EB HOLDINGS II, INC. and QXH II, INC., Plaintiffs, 19 v. 20 21 22 23 24 25 26 27 ILLINOIS NATIONAL INSURANCE COMPANY, CONTINENTAL CASUALTY COMPANY, FEDERAL INSURANCE COMPANY, BEAZLEY INSURANCE COMPANY, INC., AXIS INSURANCE COMPANY, ACE AMERICAN INSURANCE COMPANY, IRONSHORE INDEMNITY INC., FREEDOM SPECIALTY INSURANCE COMPANY, ARCH INSURANCE COMPANY and ASPEN SPECIALTY INSURANCE COMPANY, STIPULATED ORDER WITHDRAWING PENDING MOTION Defendants. 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 Dockets.Justia.com Case 2:20-cv-00461-KJD-BNW Document 34 Filed 07/07/20 Page 2 of 12 1 IT IS HEREBY STIPULATED and AGREED, by and between Plaintiffs EB Holdings II, 2 Inc. (“EBH”), by and through its counsel, the law firm of Garman Turner Gordon LLP, QXH II, 3 Inc. (“QXH II,” and together with EBH, the “Insureds”), by and through its counsel, the law firms 4 of K&L Gates LLP and Ghandi Deeter Blackham, and Beazley Insurance Company, Inc. 5 (“Beazley”), by and through its counsel, the law firm of Christian, Kravitz, Dichter, Johnson & 6 Sluga, PLLC, as follows: 7 WHEREAS, on September 30, 2019, EBH filed its Chapter 11 bankruptcy petition in the 8 United States Bankruptcy Court for the District of Nevada (the “Bankruptcy Court”), thereby 9 commencing chapter 11 case no. 19-16364-MKN. 10 11 WHEREAS, on January 16, 2020, EBH and QXH II filed a Complaint in the Bankruptcy Court, thereby commencing adversary proceeding no. 20-01010-MKN (the “Adversary”). 12 WHEREAS, on March 4, 2020, Beazley filed Beazley Insurance Company, Inc.’s Motion 13 to Withdraw Reference [ECF No. 1] (the “Beazley’s Motion to Withdraw the Reference”), thereby 14 commencing District Court case number 2:20-cv-00461-KDJ-BNW. 15 WHEREAS, on March 20, 2020, an Order Consolidating Cases [ECF No. 7] was entered 16 in District Court case number 2:20-cv-00461-KDJ-BNW consolidating District Court case 17 numbers 2:20-cv-00492-APG-NJK and 2:20-cv-00491-KJD-BNW with lead District Court case 18 number 2:20-cv-00461-KJD-BNW. 19 WHEREAS, on June 24, 2018, the Stipulation Dismissing Defendant Beazley Insurance 20 Company, Inc. Without Prejudice (the “Stipulation”) was filed in the Adversary. The Stipulation, 21 attached hereto as Exhibit 1, provided for the withdrawal of the Motion to Withdraw the Reference 22 and a related pleading and for the dismissal of the Insureds’ claims against Beazley without 23 prejudice. 24 WHEREAS, the Stipulation was approved by entry of the Order of the Bankruptcy Court 25 on June 25, 2020 (the “Dismissal Order”). A copy of the Dismissal Order is attached hereto as 26 Exhibit 2. 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 2 Case 2:20-cv-00461-KJD-BNW Document 34 Filed 07/07/20 Page 3 of 12 1 NOW, THEREFORE, the Insureds and Beazley hereby stipulate and agree that Beazley’s 2 Motion to Withdraw the Reference is hereby withdrawn, with the parties to bear their own fees 3 and costs. 4 5 Dated this 25th day of June, 2020. GARMAN TURNER GORDON LLP K&L GATES LLP By: /s/ Talitha Gray Kozlowski GREGORY E. GARMAN, ESQ. TALITHA GRAY KOZLOWSKI, ESQ. TERESA M. PILATOWICZ, ESQ. 7251 Amigo Street, Suite 210 Las Vegas, Nevada 89119 Attorneys for EB Holdings II, Inc. By: /s/ Paul C. Fuener THOMAS E. BIRSIC, ESQ. PAUL C. FUENER, ESQ. K&L Gates Center 210 Sixth Avenue Pittsburgh, Pennsylvania 15222 6 7 8 9 10 GHANDI DEETER BLACKHAM SHARA L. LARSON, ESQ. 725 S. 8th Street, Suite 100 Las Vegas, Nevada 89101 Attorneys for QXH II, Inc. 11 12 13 14 CHRISTIAN, KRAVITZ, DICHTER, JOHNSON & SLUGA, PLLC 15 16 17 18 19 By: /s/ Gena L. Sluga STEPHEN M. DICHTER, ESQ. GENA L. SLUGA, ESQ. L. RENEE GREEN, ESQ. 8985 Eastern Avenue, Suite 200 Las Vegas, Nevada 89123 Attorneys for Beazley Insurance Company, Inc. 20 21 22 23 IT IS SO ORDERED: 24 25 26 UNITED STATES DISTRICT JUDGE 27 DATED :7/7/2020 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 3 Case 2:20-cv-00461-KJD-BNW Document 34 Filed 07/07/20 Page 4 of 12 EXHIBIT 1 EXHIBIT 1 Case2:20-cv-00461-KJD-BNW 20-01010-mkn Doc 156 Document Entered 06/24/20 Case 34 Filed15:48:34 07/07/20 Page Page 15 of of 412 1 2 3 4 5 6 7 GARMAN TURNER GORDON LLP GREGORY E. GARMAN, ESQ. Nevada Bar No. 6654 Email: ggarman@gtg.legal TALITHA GRAY KOZLOWSKI, ESQ. Nevada Bar No. 9040 Email: tgray@gtg.legal TERESA M. PILATOWICZ, ESQ. Nevada Bar No. 9605 Email: tpilatowicz@gtg.legal 7251 Amigo Street, Suite 210 Las Vegas, Nevada 89119 Tel: (725) 777-3000 Attorneys for EB Holdings II, Inc. 8 9 10 K&L GATES LLP THOMAS E. BIRSIC, ESQ. (Admitted Pro Hac Vice) Email: thomas.birsic@klgates.com PAUL C. FUENER, ESQ. (Admitted Pro Hac Vice) Email: paul.fuener@klgates.com K&L Gates Center 210 Sixth Avenue Pittsburgh, Pennsylvania 15222-2613 Tel: (412) 355-6500 GHANDI DEETER BLACKHAM SHARA L. LARSON, ESQ. Nevada Bar No. 7786 Email: shara@ghandilaw.com 725 S. 8th St., Suite 100 Las Vegas, Nevada 89101 Tel: (702) 878-1115 Attorneys for QXH II, Inc. 11 UNITED STATES BANKRUPTCY COURT 12 FOR THE DISTRICT OF NEVADA 13 14 15 In re: Chapter 11 EB HOLDINGS II, INC., Case No.: BK-S-19-16364-MKN Debtor. 16 Adv. Pro. No. 20-01010-MKN 17 18 19 20 21 22 23 24 25 26 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 EB HOLDINGS II, INC. and QXH II, INC., Plaintiffs, v. ILLINOIS NATIONAL INSURANCE COMPANY, CONTINENTAL CASUALTY COMPANY, FEDERAL INSURANCE COMPANY, BEAZLEY INSURANCE COMPANY, INC., AXIS INSURANCE COMPANY, ACE AMERICAN INSURANCE COMPANY, IRONSHORE INDEMNITY INC., FREEDOM SPECIALTY INSURANCE COMPANY, ARCH INSURANCE COMPANY and ASPEN SPECIALTY INSURANCE COMPANY, Defendants. STIPULATION DISMISSING DEFENDANT BEAZLEY INSURANCE COMPANY, INC. WITHOUT PREJUDICE AND WITHDRAWING PENDING MOTIONS Case2:20-cv-00461-KJD-BNW 20-01010-mkn Doc 156 Document Entered 06/24/20 Case 34 Filed15:48:34 07/07/20 Page Page 26 of of 412 1 IT IS HEREBY STIPULATED and AGREED, by and between Plaintiffs EB Holdings II, 2 Inc. (“EBH”), by and through its counsel, the law firm of Garman Turner Gordon LLP, QXH II, 3 Inc. (“QXH II,” and together with EBH, the “Insureds”), by and through its counsel, the law firms 4 of K&L Gates LLP and Ghandi Deeter Blackham, and Beazley Insurance Company, Inc. 5 (“Beazley”), by and through its counsel, the law firm of Christian, Kravitz, Dichter, Johnson & 6 Sluga, PLLC, as follows: 7 WHEREAS, on September 30, 2019, EBH filed its Chapter 11 bankruptcy petition in the 8 United States Bankruptcy Court for the District of Nevada, thereby commencing chapter 11 case 9 no. 19-16364-MKN. 10 WHEREAS, on January 16, 2020, EBH and QXH II filed a Complaint in the United States 11 Bankruptcy Court for the District of Nevada, thereby commencing this adversary proceeding, 12 adversary no. 20-01010-MKN (the “Adversary”). 13 WHEREAS, on March 3, 2020, Beazley filed Beazley Insurance Company, Inc.’s Motion 14 to Withdraw Reference [ECF No. 48] (the “Motion to Withdraw the Reference”), thereby 15 commencing District Court case number 2:20-cv-00461-KDJ-BNW.1 16 WHEREAS, on March 11, 2020, Beazley filed a Joinder in Illinois National Insurance 17 Company’s Motion to Dismiss Plaintiffs’ Complaint Under FRBP 12(b)(1) [ECF No. 80] (the 18 “Joinder”), arguing, inter alia, that Plaintiffs’ Complaint fails to state a justiciable cause of action 19 for declaratory relief against Beazley because the Complaint alleges that “[t]o date, the Insureds 20 have incurred substantial defense costs in connection with the GoldenTree Action and related 21 litigation, including in excess of $25,000,000 in attorneys’ fees and costs…,” and Beazley’s policy 22 attaches in excess of underlying policies with limits of liability totaling $50,000,000. 23 WHEREAS, Plaintiffs and Beazley have agreed to dismiss Plaintiffs’ Complaint without 24 prejudice, subject to the understanding that Plaintiffs will seek coverage from Beazley for the 25 claims at issue in the Complaint only upon an allegation by Plaintiffs of damages reaching the 26 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 1 A similar stipulated order is being filed in case number 2:20-cv-00461-KDJ-BNW, pending in the United States District Court for the District of Nevada. 2 Case2:20-cv-00461-KJD-BNW 20-01010-mkn Doc 156 Document Entered 06/24/20 Case 34 Filed15:48:34 07/07/20 Page Page 37 of of 412 1 attachment point of Beazley’s policy; moreover, in the event that Plaintiff’s decide to pursue future 2 claims against Beazley, they agree to serve Beazley with a copy of any motion to amend the 3 complaint and to allow Beazley the opportunity to file a timely response to that motion. 4 WHEREAS, the Insureds and Beazley have agreed to dismiss Beazley from the Adversary 5 without prejudice and to vacate all pending matters by and between them, with each party to bear 6 its own attorneys’ fees and costs. 7 8 9 10 11 12 13 14 15 NOW, THEREFORE, subject to entry of an Order approving this Stipulation, the Insureds and Beazley hereby stipulate and agree as follows: 1. Beazley withdraws its Joinder [ECF No. 80] and Motion to Withdraw the Reference [ECF No. 48]; 2. The Insureds’ claims against Beazley filed in this Adversary are dismissed without prejudice; and 3. The Insureds and Beazley shall each bear their own attorneys’ fees and costs incurred to date with respect to the Adversary. Dated this 24th day of June, 2020. 16 17 GARMAN TURNER GORDON LLP K&L GATES LLP By: /s/ Talitha Gray Kozlowski GREGORY E. GARMAN, ESQ. TALITHA GRAY KOZLOWSKI, ESQ. TERESA M. PILATOWICZ, ESQ. 7251 Amigo Street, Suite 210 Las Vegas, Nevada 89119 Attorneys for EB Holdings II, Inc. By: /s/ Paul C. Fuener THOMAS E. BIRSIC, ESQ. PAUL C. FUENER, ESQ. K&L Gates Center 210 Sixth Avenue Pittsburgh, Pennsylvania 15222 18 19 20 21 22 GHANDI DEETER BLACKHAM SHARA L. LARSON, ESQ. 725 S. 8th Street, Suite 100 Las Vegas, Nevada 89101 Attorneys for QXH II, Inc. 23 24 25 26 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 3 Case2:20-cv-00461-KJD-BNW 20-01010-mkn Doc 156 Document Entered 06/24/20 Case 34 Filed15:48:34 07/07/20 Page Page 48 of of 412 1 CHRISTIAN, KRAVITZ, DICHTER, JOHNSON & SLUGA, PLLC 2 3 4 5 6 7 By: /s/ Gena L. Sluga STEPHEN M. DICHTER, ESQ. GENA L. SLUGA, ESQ. L. RENEE GREEN, ESQ. 8985 Eastern Avenue, Suite 200 Las Vegas, Nevada 89123 Attorneys for Beazley Insurance Company, Inc. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 4 Case 2:20-cv-00461-KJD-BNW Document 34 Filed 07/07/20 Page 9 of 12 EXHIBIT 2 EXHIBIT 2 Case 20-01010-mkn Doc 157Document Entered 34 06/25/20 Page 10 1 ofof312 Case 2:20-cv-00461-KJD-BNW Filed 11:05:57 07/07/20 Page 1 2 3 4 Entered on Docket 5June 25, 2020 ___________________________________________________________________ 6 7 8 9 10 11 12 13 GARMAN TURNER GORDON LLP GREGORY E. GARMAN, ESQ. Nevada Bar No. 6654 Email: ggarman@gtg.legal TALITHA GRAY KOZLOWSKI, ESQ. Nevada Bar No. 9040 Email: tgray@gtg.legal TERESA M. PILATOWICZ, ESQ. Nevada Bar No. 9605 Email: tpilatowicz@gtg.legal 7251 Amigo Street, Suite 210 Las Vegas, Nevada 89119 Tel: (725) 777-3000 Attorneys for EB Holdings II, Inc. 14 15 16 K&L GATES LLP THOMAS E. BIRSIC, ESQ. (Admitted Pro Hac Vice) Email: thomas.birsic@klgates.com PAUL C. FUENER, ESQ. (Admitted Pro Hac Vice) Email: paul.fuener@klgates.com K&L Gates Center 210 Sixth Avenue Pittsburgh, Pennsylvania 15222-2613 Tel: (412) 355-6500 GHANDI DEETER BLACKHAM SHARA L. LARSON, ESQ. Nevada Bar No. 7786 Email: shara@ghandilaw.com 725 S. 8th St., Suite 100 Las Vegas, Nevada 89101 Tel: (702) 878-1115 Attorneys for QXH II, Inc. 17 UNITED STATES BANKRUPTCY COURT 18 FOR THE DISTRICT OF NEVADA 19 In re: Chapter 11 20 EB HOLDINGS II, INC., Case No.: BK-S-19-16364-MKN 21 Debtor. 22 Adv. Pro. No. 20-01010-MKN 23 EB HOLDINGS II, INC. and QXH II, INC., 24 Plaintiffs, 25 v. 26 ILLINOIS NATIONAL INSURANCE COMPANY, CONTINENTAL CASUALTY COMPANY, FEDERAL INSURANCE COMPANY, BEAZLEY INSURANCE COMPANY, INC., AXIS 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 ORDER DISMISSING DEFENDANT BEAZLEY INSURANCE COMPANY, INC. WITHOUT PREJUDICE AND WITHDRAWING PENDING MOTIONS Case 20-01010-mkn Doc 157Document Entered 34 06/25/20 Page 11 2 ofof312 Case 2:20-cv-00461-KJD-BNW Filed 11:05:57 07/07/20 Page 1 2 3 4 INSURANCE COMPANY, ACE AMERICAN INSURANCE COMPANY, IRONSHORE INDEMNITY INC., FREEDOM SPECIALTY INSURANCE COMPANY, ARCH INSURANCE COMPANY and ASPEN SPECIALTY INSURANCE COMPANY, 5 Defendants. 6 Plaintiffs EB Holdings II, Inc. (“EBH”), by and through its counsel, the law firm of Garman 7 Turner Gordon LLP, QXH II, Inc. (“QXH II,” and together with EBH, the “Insureds”), by and 8 through its counsel, the law firms of K&L Gates LLP and Ghandi Deeter Blackham, and Beazley 9 Insurance Company, Inc. (“Beazley”), by and through its counsel, the law firm of Christian, 10 Kravitz, Dichter, Johnson & Sluga, PLLC, entered into that certain Stipulation to Dismiss Beazley 11 Insurance Company, Inc. Without Prejudice and Withdrawing Pending Motions (the 12 “Stipulation”).1 Good cause appearing therefore; 13 IT IS HEREBY ORDERED that the Stipulation is approved in its entirety. 14 IT IS FURTHER ORDERED that Beazley’s Joinder [ECF No. 80] and Motion to 15 Withdraw the Reference [ECF No. 48] are withdrawn. 16 17 IT IS FURTHER ORDERED that the Insureds’ claims against Beazley filed in this Adversary are dismissed without prejudice. 18 19 IT IS FURTHER ORDERED that the Insureds and Beazley shall each bear their own attorneys’ fees and costs incurred to date with respect to the Adversary. 20 IT IS SO ORDERED. 21 GARMAN TURNER GORDON LLP K&L GATES LLP By: /s/ Talitha Gray Kozlowski GREGORY E. GARMAN, ESQ. TALITHA GRAY KOZLOWSKI, ESQ. TERESA M. PILATOWICZ, ESQ. 7251 Amigo Street, Suite 210 Las Vegas, Nevada 89119 Attorneys for EB Holdings II, Inc. By: /s/ Paul C. Fuener THOMAS E. BIRSIC, ESQ. PAUL C. FUENER, ESQ. K&L Gates Center 210 Sixth Avenue Pittsburgh, Pennsylvania 15222 22 23 24 25 26 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 1 All capitalized, undefined terms shall have the meanings ascribed to them in the Stipulation. 2 Case 20-01010-mkn Doc 157Document Entered 34 06/25/20 Page 12 3 ofof312 Case 2:20-cv-00461-KJD-BNW Filed 11:05:57 07/07/20 Page 1 CHRISTIAN, KRAVITZ, DICHTER, JOHNSON & SLUGA, PLLC GHANDI DEETER BLACKHAM SHARA L. LARSON, ESQ. 725 S. 8th Street, Suite 100 Las Vegas, Nevada 89101 Attorneys for QXH II, Inc. 2 3 4 5 6 7 By: /s/ Gena L. Sluga STEPHEN M. DICHTER, ESQ. GENA L. SLUGA, ESQ. L. RENEE GREEN, ESQ. 8985 Eastern Avenue, Suite 200 Las Vegas, Nevada 89123 Attorneys for Beazley Insurance Company, Inc. 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 GARMAN TURNER GORDON 7251 Amigo St., Ste. 210 Las Vegas, NV 89119 725-777-3000 3
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