Lowenschuss v. Resorts International, Inc.

194 B.R. 339, 1996 U.S. Dist. LEXIS 3670, 1996 WL 138113
CourtDistrict Court, D. New Jersey
DecidedJanuary 29, 1996
DocketCivil Action No. 95-2673
StatusPublished

This text of 194 B.R. 339 (Lowenschuss v. Resorts International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lowenschuss v. Resorts International, Inc., 194 B.R. 339, 1996 U.S. Dist. LEXIS 3670, 1996 WL 138113 (D.N.J. 1996).

Opinion

OPINION

LECHNER, District Judge.

Laurance Lowenschuss (“Laurance Low-enschuss”), individually and as the trustee of the Fred Lowenschuss Associates Pension Plan (the “Pension Plan”) commenced this action by filing a complaint (the “Complaint”) in the United States District Court for the District of Nevada (the “U.S. District Court, Nevada”) against defendant Resorts International, Inc. (“Resorts”). Laurance Lowen-schuss seeks damages, an injunction and a declaratory judgment. Jurisdiction is asserted under 28 U.S.C. § 1332(a) and is also proper under 28 U.S.C. § 1334(b).

Currently before the court is the question whether the Complaint should be referred to the United States Bankruptcy Court for the District of New Jersey (the “U.S. Bankruptcy Court, New Jersey”) pursuant to 28 U.S.C. § 157(a) (“Section 157(a)”) and pursuant to the Standing Order of Reference of the United States District Court for the District of New Jersey, dated 23 July 1984, ¶ 1 (the “Standing Order”).1 For the reasons set forth below, the Complaint is referred to the U.S. Bankruptcy Court, New Jersey.

Facts

A, Parties

The Complaint alleges Laurance Lowen-schuss is a resident of the State of Nevada. Complaint, ¶ 1. Resorts is a corporation organized and existing under the laws of the State of Delaware with its principal place of business in New Jersey. Complaint, ¶ 2; see Affidavit of Matthew B. Kearney, Executive Vice-President of Resorts, dated 27 October 1994, ¶ 2.

A complaint filed by Resorts in a related matter (the “Resorts Complaint”) alleges Fred Lowenschuss (“Fred Lowenschuss”) is a resident of the Commonwealth of Pennsylvania. Resorts Complaint, ¶3. Fred Low-enschuss is allegedly the trustee of individual retirement accounts formed for the benefit of Fred Lowenschuss (the “Fred Lowenschuss IRA”) and Laurance Lowenschuss (the “Lau-rance Lowenschuss IRA”). Id. Fred Low-[343]*343enschuss is the father of Laurance Lowen-schuss. Complaint, ¶ 8; Def. Chronology at 5.

B. Background and Procedural History

Laurance Lowensehuss filed the Complaint on 13 September 1994 in the U.S. District Court, Nevada.2 Laurance Lowensehuss seeks $1,000,000.00 in damages for abuse of process for a motion filed by Resorts, in a related proceeding, to hold Laurance Lowen-schuss in contempt (the “Contempt Motion”).3 Complaint, ¶¶ 23-28 (the “First Claim for Relief’). Laurance Lowensehuss also seeks a declaratory judgment in connection with a tender by the Pension Plan of shares of stock in Resorts (the “Tender”) and a declaratory judgment “that this Court has sole and exclusive jurisdiction over the issues raised in this action.” Id., ¶¶ 29-39 (the “Second Claim for Relief’). Further, Lau-rance Lowensehuss demands an injunction preventing Resorts “and its representatives and attorneys ... from interfering in any manner with the proper management, investment and distribution of the Pension Plan assets and from interfering in any way in any and all activities of the Pension Plan.” Id., ¶41. Laurance Lowensehuss also seeks to enjoin Resorts “and its representatives and attorneys from ... pursuing any separate or other action against the Pension Plan” for the funds the Pension Plan received from the Tender. Id., ¶ 42 (the “Third Claim for Relief’). Finally, Laurance Lowensehuss seeks general damages exceeding $1,000,000.00, special damages not set out in the Complaint and punitive damages exceeding $1,000,-000.00 for interference with contractual relationships between the Pension Plan and unspecified third parties. Id., ¶¶ 43-47 (the “Fourth Claim for Relief’).4 Laurance Low-enschuss also seeks statutory damages, including treble damages and costs, attorneys’ fees and interest. Complaint, Prayer For Relief.

Laurance Lowensehuss filed a motion for summary judgment (the “Summary Judgment Motion”) in the U.S. District Court, Nevada on 21 October 1994. On 31 October 1994, Resorts filed a motion in the U.S. District Court, Nevada, to dismiss the Complaint (the “Motion to Dismiss”) for lack of personal jurisdiction pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure. Resorts requested an adjournment of the Summary Judgment Motion (the “Motion for Adjournment”) on 8 November 1994. On 29 November 1994, the U.S. District Court, Nevada granted the Motion for Adjournment, and on 6 January 1995, the U.S. District Court, Nevada decided the Motion to Dismiss, concluding Laurance Lowensehuss lacked jurisdiction over Resorts. The U.S. District Court, Nevada ordered the Complaint, including the pending Summary Judgment Motion, transferred to the United States District Court for the Eastern District of Pennsylvania (the “U.S. District Court, Pennsylvania”), pursuant to 28 U.S.C. § 1631.

On 7 February 1995, Resorts filed an answer (the “Answer”) in the U.S. District Court, Pennsylvania,5 alleging six affirmative defenses, including claim preclusion and issue preclusion. Answer, ¶ 51. On the following day, Resorts filed a motion to transfer the Complaint (the “Motion to Transfer”) to the United States District Court for the District of New Jersey (the “U.S. District Court, New Jersey”). On 17 February 1995, Resorts amended its answer (the “Amended Answer”) to include counterclaims (the “Counterclaims”). The Amended Answer and Counterclaims seek dismissal of the Complaint, Amended Answer, Prayer for Relief, ¶ (a), rescission of the Tender made in connection with the Merger and return of the [344]*344of $3,805,200.00 payment to the Pension Plan as part of the Tender, id., ¶¶ (b), (c), and prejudgment and postjudgment interest, punitive damages, costs, attorneys’ fees and any other relief “as this Court determines to be just and proper.” Id., ¶¶ (d)-(g). Laurance Lowenschuss responded to the Motion to Transfer on 23 February 1995. On the following day, Resorts filed a motion to stay the Summary Judgment Motion (the “Motion to Stay”); as stated, Laurance Lowenschuss had filed the Summary Judgment Motion in the U.S. District Court, Nevada on 21 October 1994. The U.S. District Court, Pennsylvania granted the Motion to Transfer to the U.S. District Court, New Jersey on 17 April 1995, pursuant to 28 U.S.C. § 1404(a).6

C. Related Litigation

Fred and Laurance Lowenschuss have been involved in considerable litigation with Resorts related to the Complaint. What follows is a chronology of related litigation among the parties. Unless otherwise noted, the facts stated appear in the papers of the parties. Facts that appear only in the papers of one party are supported by a cite to that party’s papers.

1. The Merger Actions

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
194 B.R. 339, 1996 U.S. Dist. LEXIS 3670, 1996 WL 138113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowenschuss-v-resorts-international-inc-njd-1996.