Wi-Sky Inflight, Inc. v. Leabman (In re Wi-Sky Inflight, Inc.)

483 B.R. 788
CourtDistrict Court, N.D. Georgia
DecidedOctober 30, 2012
DocketNo. 11-40490-PWB; Adversary Nos. 12-04056-PWB, 12-04057-PWB, 12-04058-PWB, 12-04-059-PWB; Civil Action Nos. 4:12-CV-00248 HLM, 4:12-CV-249 HLM, 4:12-CV-00250 HLM, 4-12-CV-251 HLM
StatusPublished
Cited by3 cases

This text of 483 B.R. 788 (Wi-Sky Inflight, Inc. v. Leabman (In re Wi-Sky Inflight, Inc.)) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wi-Sky Inflight, Inc. v. Leabman (In re Wi-Sky Inflight, Inc.), 483 B.R. 788 (N.D. Ga. 2012).

Opinion

ORDERS

HAROLD L. MURPHY, District Judge.

This case is before the Court on the Creditors’1 Motions for Immediate Withdrawal of the Reference (“Motions to Withdraw”) of the above-captioned Adversary Proceedings [Docket Entry No. I].2

[790]*790I.Background

On September 14, 2012, the Creditors filed identical Motions to Withdraw the above-captioned Adversary Proceedings in the United States Bankruptcy Court, Northern District of Georgia (the “Bankruptcy Court”). (Docket Entry Nos. 1 at 23.) On September 28, 2012, Wi-Sky Inflight, Inc. (the “Debtor”) filed Responses to the Motions to Withdraw (the “Responses”) in the Bankruptcy Court. (Docket Entry Nos. 2 at 11.)3 On October 15, 2012, the Creditors submitted their Reply Briefs in Support of the Motions to Withdraw (the “Reply Briefs”) in the Bankruptcy Court. (Docket Entry Nos. 3 at 14.)4

The Court received all of those filings on October 15, 2012, and finds that no further briefing will assist in the resolution of this matter, which is ripe for resolution. (Docket Entry Nos. 1, 2, and 3.)

During the past several years, the Debt- or, Creditor, and various other parties have been embroiled in the following litigation, spanning multiple forums, regarding various intellectual property and related disputes:

1. Wi-Sky Inflight Inc. v. Michael Leabman, Vivano Networks, Inc., V-Ten Capital Management, LLC, Turn-stone Capital Management, LLC, Richard L. Sharp, James P. Karides, Ronald Wooldridge, Marc J. Lamagna, and Craig Samuel, Civil Action No.2010-CV190243 (Ga.Super.Ct. filed Aug. 27, 2010);
2. Lufthansa Systems Infratec GmbH v. Wi-Sky Inflight, Inc., et al. Civil Action No. 3:10-cv-745-JAG (E.D.Va. filed Oct. 15, 2010);
3. WLVEST, LLC v. Wi-Sky Inflight, Inc. and Wi-Sky Networks, LLC, Case No. 3:10-cv-776 (E.D.Va. filed Oct. 26, 2010);
4. Leroy A. Leabman, Trustee of the Leabman Family Trust, dated Sept. 22.1991, Michael Leabman, and Vivano Networks, Inc. v. Grant Sharp, Daniel 5. Katz, Wi-Sky Inflight, Inc., and Does 1-5, Case No. Cll-00152 (Calif.Super.Ct. filed Jan. 20, 2011) (the “California Securities Litigation”);
5. Turnstone Capital Management, LLC v. Wi-Sky Inflight, Inc., Case No. RG-10-552386 (Calif.Super.Ct. filed Dec. 21, 2010);
6. Turnstone Capital Management, LLC v. Wi-Sky Inflight, Inc., Case No. CV 10-6006873 (Super.Ct.Conn. filed Sept. 27, 2010); and
7. Wi-Sky Inflight, Inc. v. Michael Leabman, et al, Case No. CL 11005148-00 (Richmond, Va. Circuit Ct. filed Nov. 14, 2011).

(Motions to Withdraw at 5-6; Responses at 7-8.)

On February 22, 2011, Debtor filed the above-captioned bankruptcy case (the “Bankruptcy Case”). (Motions to Withdraw at 5; Responses at 8.) The Creditors each filed a proof of claim (the “Proofs of Claim”) in the Bankruptcy Case based upon the various claims the Creditors have asserted against Debtor in the myriad pieces of still-pending litigation. (Motions to Withdraw at 6; Responses at 8.)5 On [791]*791July 18, 2012, Debtor commenced the above-captioned Adversary Proceedings against the Creditors, objecting to the Proofs of Claim, making a jury demand, and filing counterclaims to the Proofs of Claim (the “Counterclaims”). (Id.; Id.) On September 5, 2012, the Creditors filed a Motion to Dismiss for each of the Counterclaims (the “Motions to Dismiss”). (Motions to Withdraw at 6.)6

The relevant Proofs of Claim filed by the Creditors and Counterclaims asserted by the Debtor in the Adversary Proceedings are as follows:

1. Leabman. Leabman filed a Proof of Claim for an undetermined amount for the claims related to the Georgia Superi- or Court Litigation and the California Securities Litigation, including libel per se, fraud, negligent misrepresentation, and violations of California’s blue-sky laws. On July 18, 2012, Debtor commenced Adversary Proceeding No. 12-04-056-PWB against Leabman asserting state law-based counterclaims for, among other counts, breach and repudiation of a contractor agreement, civil conspiracy, breach of fiduciary duty, conversion, fraud, and turnover.
2. Turnstone. Turnstone filed a Proof of Claim totaling $386,611.39, comprised of a secured claim of $220,000 for the alleged nonpayment of a secured loan (the subject of the Connecticut Litigation), and an unsecured claim of $166,611.39 as assignee of a claim for unpaid services rendered and related amounts (the subject of the Alameda Litigation). On July 18, 2012, Debtor commenced Adversary Proceeding No. 12-04057-PWB against Turnstone asserting state law-based counterclaims for, among other counts, civil conspiracy, tortious interference, and turnover.
3. Vivano. Vivano filed a Proof of Claim for an undetermined amount for various claims related to the Georgia Superior Court Litigation and the California Securities Litigation, including libel per se, fraud, negligent misrepresentation, and violations of California’s blue-sky laws. On July 18, 2012, Debtor commenced Adversary Proceeding No. 12-04058-PWB against Vivano asserting state law-based counterclaims for, among other counts, breach and repudiation of a contractor agreement, civil conspiracy, breach of fiduciary duty, conversion, fraud, and turnover.
4. WIVEST. WIVEST filed a Proof of Claim for $83,546.66 for alleged nonpayment of a secured loan (the subject of the WIVEST Loan Litigation). On July 18, 2012, Debtor commenced Adversary Proceeding No. 12-04059-PWB against WIVEST asserting state law-based counterclaims for, among other counts, civil conspiracy, and tortious interference.

(Motions to Withdraw at 7-8.)

Debtor, Turnstone, and another creditor have filed three competing bankruptcy plans (the “Plans”) in the original Bankruptcy Case. (Id. at 8.) The Bankruptcy Court determined that solicitation of votes for the Plans — a prerequisite to the Bankruptcy Court considering which, if any, of the Plans to approve — should not go forward until there has been a determination of whether the Creditors’ Proofs of Claim should be allowed. The Creditors whose Proofs of Claim were allowed would then vote on the Plans. (Id.)

The Debtor asserts that the damages it incurred for the matters covered by the Counterclaims may be set off against the amounts the Creditors seek in the Proofs of Claim. (Id.; Responses at 9.) The [792]*792Debtor also contends that the amounts owed pursuant to the Counterclaims exceed any amounts owed to the Creditors pursuant to the Proofs of Claim. Therefore, the Debtor argues, the Proofs of Claim should be disallowed. (Motions to Withdraw at 8.) For those reasons, “[a]d-minstration of the bankruptcy cannot go forward without consideration of the [Adversary [Proceedings.” (Responses at 9.)

The Creditors agree with the Debtor that, to resolve the parties’ disputes, a court must fully adjudicate the Adversary Proceedings.

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

Related

Richert v. Calderin
S.D. Florida, 2025
White v. Richert
S.D. Florida, 2024

Cite This Page — Counsel Stack

Bluebook (online)
483 B.R. 788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wi-sky-inflight-inc-v-leabman-in-re-wi-sky-inflight-inc-gand-2012.