Sigari v. Banasik

• Court: District Court, N.D. California
• Decided: April 11, 2024
• Docket: 5:24-cv-01816
• Status: Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 HANIEH SIGARI, et al., Case No. 24-cv-01816-EJD

9 Plaintiffs, ORDER REGARDING LIMITED RECEIVERSHIP OF PLAINTIFF 10 v. QYRAL, LLC; DIRECTING PARTIES TO FILE JOINT PROPOSED ORDER 11 DARIUSZ BANASIK, et al., APPOINTING KEVIN A. SINGER TO LIMITED RECEIVERSHIP Defendants. 12

14 Pending before the Court is Defendant’s Emergency Motion (the “Motion”) for 15 Appointment of Receiver for Plaintiff Qyral, LLC (“Qyral”). See Mot., ECF No. 25. Plaintiffs 16 oppose the Motion in part, agreeing that a receivership is warranted but disputing the scope of the 17 receivership and the choice of receiver. See Opp’n, ECF No. 29. 18 With respect to the scope of the receivership, the Court concurs with the parties—as 19 discussed at the April 9, 2024 hearing in this matter—that a receivership is necessary to ensure 20 that Qyral remains a going concern, particularly in light of the parties’ assertions that the other has 21 engaged in improper conduct with respect to Qyral’s operations. See, e.g., Canada Life Assur. Co. 22 v. LaPeter, 563 F.3d 837, 844 (9th Cir. 2009). However, given that appointment of a receiver is 23 an “extraordinary equitable remedy,” id., the Court believes at this early juncture that a limited 24 receivership is more appropriate than a general receivership. The Court accordingly ORDERS the 25 parties to meet and confer and agree on the scope of the limited receivership assignment. 26 With respect to the choice of receiver, the Court has reviewed the parties’ competing 27 1 submissions as to the proposed receiver, including the declarations of A. Kyle Everett, see ECF 2 No. 27, and Kevin A. Singer, see ECF No. 29-2, and finds Mr. Singer’s long experience in 3 || receiverships and lower hourly rates to make him the better candidate for receivership of Qyral. 4 For the foregoing reasons, the Court hereby ORDERS that the parties submit a joint 5 || proposed order appointing Mr. Singer to a limited receivership over Qyral, with the agreed upon 6 scope of the limited assignment, by 3:00 p.m. on Friday, April 12, 2024, so that the Court may 7 review and approve the appointment and the parties can engage Mr. Singer by the close of 8 || business on April 12, 2024. 9 10 IT IS SO ORDERED. 11 Dated: April 11, 2024 12

13 EDWARD J. DAVILA 14 United States District Judge 15

Z 18 19 20 21 22 23 24 25 26 27 28 Case No.: 24-cv-01816-EJD ORDER RE LIMITED RECEIVERSHIP; DIRECTING FILING OF PROPOSED ORDER