International Christian Broadcasting, Inc. v. Koper (In re Koper)

517 B.R. 431
CourtUnited States Bankruptcy Court, E.D. New York
DecidedSeptember 30, 2014
DocketCase No.: 13-74213-las; Adv. Pro. No.: 13-8167-las, Adv.; Pro. No.: 13-8168-las, Adv.; Pro. No.: 13-8169-las
StatusPublished

This text of 517 B.R. 431 (International Christian Broadcasting, Inc. v. Koper (In re Koper)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Christian Broadcasting, Inc. v. Koper (In re Koper), 517 B.R. 431 (N.Y. 2014).

Opinion

Chapter 7

MEMORANDUM DECISION GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO CONSOLIDATE ADVERSARY PROCEEDINGS

HON. LOUIS A. SCARCELLA, UNITED STATES BANKRUPTCY JUDGE

Before the Court is the motion dated May 13, 2014 (the “Motion to Consolidate”) [dkt no. 86] of the pro se Debtor Defendant, Michael Koper (“Michael” or the “Defendant”), seeking to consolidate the three above-captioned adversary proceedings for purposes of discovery and trial pursuant to Rule 42 of the Federal Rules of Civil Procedure. International Christian Broadcasting, Inc. (“ICB”) and Trinity Christian Center of Santa Ana, Inc. (“TCCSA”, together with ICB, the “Plaintiffs”), filed an objection dated June 16, 2014 (the “Objection”) [dkt no. 107] to the Motion to Consolidate. For the reasons set forth below, the Motion to Consolidate is granted to the extent of consolidating the adversary proceedings for trial, but is otherwise denied. The following constitutes the Court’s findings of fact and conclusions of law pursuant to Rule 7052 of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”).

JURISDICTION

The Court has jurisdiction over this matter under 28 U.S.C. § 1334(b) and the Standing Order of Reference entered by the United States District Court for the Eastern District of New York pursuant to 28 U.S.C. § 157(a), dated August 28, 1986, as amended by Order dated December 5, 2012, effective nunc pro tunc as of June 23, 2011.

FACTS1

I. Background and Prepetition Litigation between the Parties.

TCCSA is a California nonprofit corporation that operates as a church and a religious broadcasting company that does business as Trinity Broadcasting Network. TCCSA is featured on thousands of television and cable systems worldwide and on the internet. Michael and his non-debtor spouse, Brittany Koper (“Brittany”, together with Michael, the “Kopers”), were employed by TCCSA and related organizations from 2006 to September 2011 (the “Employment Period”) and by 2008 they held various positions as high ranking employees and corporate officers. Brittany is the granddaughter of Paul Crouch, Sr., TCCSA’s founder. TCCSA’s Board of Directors and corporate officers are made up of a core group of Brittany’s family members. During the Employment Period, the Kopers also were appointed directors of ICB, an associated non-profit entity of TCCSA, which also does business as Heroes Under God (“HUG”).

Brittany was employed as TCCSA’s Director of Personnel and eventually became Director of Finance around June 2011. In connection with her employment, Brittany signed a confidentiality agreement (the “Confidentiality Agreement”) and a Comprehensive Arbitration Agreement on February 21, 2008. Under the Confidentiality Agreement with TCCSA, through its Trinity Broadcasting Network, Brittany agreed to keep certain information she received [434]*434through her employment confidential and to return any documents or materials containing any confidential information to TCCSA upon the termination of her employment. Pursuant to the Comprehensive Arbitration Agreement, Brittany agreed and acknowledged that she and TCCSA will utilize binding arbitration to resolve all disputes that may arise out of the employment context.

At least from July 2009 to September 2011, Michael resided in Lake Forest, California. Michael worked directly with TCCSA’s General Counsel in the legal department as a law clerk. By 2008, Michael became a corporate officer holding the position of Assistant Secretary. On August 16, 2010, Michael also signed a Comprehensive Arbitration Agreement similar to the one Brittany signed with TCCSA. Michael also allegedly signed a confidentiality agreement although a copy of such confidentiality agreement has not been submitted to the Court. In June 2011, Michael was promoted to Director of TCCSA’s Media Services Agency. As part of his promotion, Michael received a corporate credit card from TCCSA. In addition, when the Kopers were appointed to the Board of Directors for ICB, Michael was provided with an ICB American Express Plum Card in connection with the Kopers’ positions as board members.

On September 30, 2011, TCCSA and ICB terminated the Kopers’ employment for alleged wrongdoing that occurred in connection with their employment. Thereafter, TCCSA and ICB commenced multiple legal proceedings against the Defendant, some of which are described herein, in different jurisdictions, including the Superior Court of the State of California in the County of Orange (the “Orange County Superior Court”), the United States District Court for the Central District of California (“California District Court”), the United States District Court for the Eastern District of New York, the Supreme Court of the State of New York, and the New Jersey Superior Court.

On October 18, 2011, Redemption Strategies, Inc., a for-profit corporation, allegedly created by the TCCSA and ICB, sued the Kopers in the Orange County Superior Court for alleged embezzlement of approximately $1.3 million from the Plaintiffs.

On May 4, 2012, TCCSA filed an action before the Orange County Superior Court, Case No. 30-2012-00566620, seeking in-junctive relief against the Kopers pursuant to the Confidentiality Agreements to prevent disclosure of certain confidential information, trade secrets and family confidences obtained by them during their employment with TCCSA (the “Confidentiality Enforcement Action”). In that action, TCCSA alleged that the Kopers misappropriated corporate records, including computer records, emails, financial records and corporate resolutions. TCCSA also accused the Kopers of launching a media smear campaign against it and causing damage to its reputation and financial harm by distributing TCCSA’s confidential information to the public.

On June 8, 2012, TCCSA sued the Kop-ers in another action before the Orange County Superior Court, Case No. 30-2012-00575085, asserting similar allegations as the Confidentiality Enforcement Action but sought, inter alia, to compel arbitration of their disputes pursuant to the Comprehensive Arbitration Agreements. The action was removed to the California District Court under Case No. 8:12-CV-01121.

On June 26, 2012, TCCSA filed an action against the Kopers in California District Court captioned Trinity Christian Center of Santa Ana, Inc. v. Michael Koper et al, No. SACY 12-01049 (the “Central District Case”) alleging that during the Employment Period, (i) the Kopers made unlawful [435]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
517 B.R. 431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-christian-broadcasting-inc-v-koper-in-re-koper-nyeb-2014.