RASTELLI PARTNERS, LLC v. BAKER

District Court, D. New Jersey·Decided July 15, 2025·No. 1:23-cv-02967·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

RASTELLI PARTNERS, LLC, et al., Case No. 23–cv–02967–ESK–AMD Plaintiff, v. OPINION JAMES A. BAKER a/k/a AL BAKER, et al., Defendants.

DF VENTURES, LLC, et al., Case No. 23–cv–03126–ESK–AMD Plaintiffs,

v.

FOFBAKERS HOLDING COMPANY, LLC, et al., Defendants. KIEL, U.S.D.J. THIS MATTER is before the Court on defendants James A. “Al” Baker, Brittani Baker, and Sabrina Baker’s motion to void orders and fee awards (Docket No. 23–03126, ECF No. 133) and motions for reconsideration (Docket No. 23–02967, ECF No. 171; Docket No. 23–03126, ECF No. 160 (collectively Defs.’ Mots. Recons.)). For the following reasons, defendants’ motions will be DENIED. I. BACKGROUND AND PROCEDURAL HISTORY The facts of this case have been recited on multiple occasions and are only repeated here to the extent necessary to resolve the pending motions. Plaintiffs Rastelli Partners, LLC, Rastelli Brothers, Inc., Raymond M. Rastelli, Jr., and Ray Rastelli, III (Rastelli Plaintiffs) and plaintiffs DF Ventures and Daymond John (DF Plaintiffs) filed suit in 2023 alleging violation of defendants’ contractual confidentiality and non-disparagement obligations. (Docket No. 23–02967, ECF No. 1; Docket No. 23–03126 (DF Case), ECF No. 1.) District Judge Robert B. Kugler (Ret.) admitted counsel for DF Plaintiffs Lindsey M. Blackwell, Mercedes Colwin, Lawrence H. Fox, and Hannah M. Kucine pro hac vice. (Docket No. 23–03126, ECF Nos. 8, 9, 10, 11.) He directed each to pay the annual fee to the New Jersey Lawyers’ Fund for Client Protection within 20 days and pay $150.00 to the Clerk. (Id.) Judge Kugler held joint evidentiary hearings for plaintiffs’ requests for injunctive relief. (Docket No. 23–02967, ECF Nos. 13, 15, 22, 23, 24, 26; Docket No. 23–03126, ECF Nos. 18, 19, 31, 35, 36, 37 (collectively Prelim. Inj. Hr’gs).) On June 14, 2023, Judge Kugler converted the hearings to a trial on the merits pursuant to Federal Rule of Civil Procedure (Rule) 65(a)(2). (Docket No. 23–02967, ECF No. 53 p. 194:21–24; Docket No. 23–03126, ECF No. 63 p. 194:21–24.) Judge Kugler ultimately issued opinions and orders in favor of plaintiffs and granted their motions for attorney’s fees. (Docket No. 23–02967, ECF Nos. 41, 42, 46; Docket No. 23–03126, ECF Nos. 47, 48, 54.) Defendants’ motions for reconsideration were denied and Judge Kugler awarded a combined $316,900.46 in fees and costs to plaintiffs. (Docket No. 23–02967, ECF Nos. 102, 103; Docket No. 23–03126, ECF Nos. 99, 100.)1

1 That same day, Judge Kugler granted defendants’ counsel’s motion to withdraw. (Docket No. 23–02967, ECF No. 104; Docket No. 23–03126, ECF No. 101.) After I was assigned the DF Case, I entered an order stating that limited liability companies cannot proceed pro se and provided defendants 30 days to retain counsel. (Docket No. 23–03126, ECF No. 120.) I later directed the Clerk’s Office to enter default against defendant limited liability companies after counsel was not retained. (Docket No. 23–03126, ECF No. 134.) Defendants have indicated that they do not intend to retain counsel for the limited liability companies. (Docket No. 23–03126, ECF No. 154.) Defendants also answered and asserted counterclaims of breach of fiduciary duty; breach of contract; demand for expulsion, dissolution, and/or reorganization; and—limited to Rastelli Plaintiffs—a demand for an accounting. (Docket No. 23–02967, ECF No. 45 pp. 14–29; Docket No. 23– 03126, ECF No. 52 pp. 17–31 (collectively Defs.’ Counterclaims).) Judge Kugler dismissed defendants’ counterclaims with prejudice in a joint opinion (Docket No. 23–02967, ECF No. 105; Docket No. 23–03126, ECF No. 102 (collectively Apr. 23, 2024 Op.)) and order (Docket No. 23–02967, ECF No. 106; Docket No. 23–03126, ECF No. 103). These cases were reassigned to me following Judge Kugler’s retirement. (Docket No. 23–02967, ECF No. 111; Docket No. 23–03126, ECF No. 107.) Following the reassignment, defendants filed motions to appoint a receiver and forensic accountant and block the creation of a trust, for judicial notice, for leave to amend their motions to appoint, and—with respect to the DF Case—to void orders and fee awards. (Docket No. 23–02967, ECF Nos. 125, 126, 133; Docket No. 23–03126, ECF Nos. 116, 117, 122, 133.) I denied defendants’ motions to appoint, for judicial notice, and for leave to amend in a joint March 31, 2025 opinion (Docket No. 23–02967, ECF No. 166; Docket No. 23–03126, ECF No. 155 (collectively Mar. 31, 2025 Op.)) and order (Docket No. 23–02967, ECF No. 167; Docket No. 23–03126, ECF No. 156). My denial of defendants’ motions to appoint was premised on the relief requested being untimely, already ruled upon by Judge Kugler, or never included in defendants’ since-dismissed counterclaims. (Mar. 31, 2025 Op. pp. 8–11, 10 n. 4.) Because the appointment motions were denied, the motions to amend were denied as moot. (Id. p. 11 n. 5.) Lastly, I denied defendants’ motions for judicial notice as their interpretation of the subject email was open to reasonable dispute. (Id. p. 12.) The pending motions for reconsideration followed. (Defs.’ Mots. Recons.) II. STANDARDS Motions for reconsideration are not expressly authorized by the Federal Rules of Civil Procedure and, are instead, governed within this District by Local Civil Rule 7.1(i). Rich v. State, 294 F. Supp. 3d 266, 272 (D.N.J. 2018). Relief under Local Civil Rule 7.1(i) “is an extraordinary remedy that is granted ‘very sparingly.’” Id. (quoting L. Civ. R. 7.1(i) cmt. 6(d)). To prevail, the movant must present “(1) an intervening change in the controlling law; (2) the availability of new evidence that was not available when the court [made its initial decision]; or (3) the need to correct a clear error of law or fact or to prevent manifest injustice.” Id. (alteration in original) (quoting Max’s Seafood Café v. Quinteros, 176 F.3d 669, 677 (3d Cir. 1999)). A court “will grant a motion for reconsideration only where its prior decision has overlooked a factual or legal issue that may alter the disposition of the matter.” Andreyko v. Sunrise Senior Living, Inc., 993 F. Supp. 2d 475, 478 (D.N.J. 2014). Defendants and DF Plaintiffs do not provide a proposed standard of review for defendants’ motion to void orders and fee awards. A court within this District evaluated a motion to void an order under Rule 60(b)(4) and Rule 60(b)(6). Jones v. Citigroup Inc., Case No. 14–06547, 2015 WL 3385938, at *4 (D.N.J. May 26, 2015). Rule 60(b) provides that a court may relieve a party from a final judgment, order, or proceeding for one of six specified reasons. Fed. R. Civ. P. 60(b). Among them are when the judgment is void or “any other reason that justifies relief.” Fed. R. Civ. P. 60(b)(4), (6). “Rule 60(b)(4) applies only in the rare instance where a judgment is premised either on a certain type of jurisdictional error or on a violation of due process that deprives a party of notice or the opportunity to be heard.” Johnson v. Rardin, 700 F. App’x 170, 172 (3d Cir. 2017) (quoting United Student Aid Funds, Inc. v. Espinosa, 559 U.S. 260, 270 (2010)). Meanwhile, “Rule 60(b)(6) covers ‘extraordinary circumstances where, without such relief, an extreme and unexpected hardship would occur.’” Heriveaux v.

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