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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK in RE: INNKEEPERS USA TRUST, et AL, Debtors. The undersigned will move this court to lift the stay of a certain proceeding against GRAND PRIX ISLANDIA, LLC, successor in interest of inkEEPers FINANCING PARTNERSHIP III, LP.
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK in RE: INNKEEPERS USA TRUST, et AL, Debtors. The undersigned will move this court to lift the stay of a certain proceeding against GRAND PRIX ISLANDIA, LLC, successor in interest of inkEEPers FINANCING PARTNERSHIP III, LP.
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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK in RE: INNKEEPERS USA TRUST, et AL, Debtors. The undersigned will move this court to lift the stay of a certain proceeding against GRAND PRIX ISLANDIA, LLC, successor in interest of inkEEPers FINANCING PARTNERSHIP III, LP.
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Attribution Non-Commercial (BY-NC)
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PLEASE TAKE NOTICE, that upon the annexed affirmation of JOSEPH J. PERRINI, III, duly affirmed August 25, 2010, and upon all the pleadings and proceedings heretofore had herein, the undersigned will move this Court at the Southern District of New York, One Bowling Green, New York, NY, on 30 th day of September, 2010, at 10:00 AM, or as soon thereafter as counsel can be heard for an Order pursuant to 11 U.S.C. Section 362(d) to lift the stay of a certain proceeding against GRAND PRIX ISLANDIA, LLC, SUCCESSOR IN INTEREST OF INNKEEPERS FINANCING PARTNERSHIP III, LP AND ISLAND HOSPITALITY MANAGEMENT, INC., SUCCESSOR IN INTEREST TO INNKEEPERS HOSPITALITY MANAGEMENT, INC., pending in the Supreme Court of the State of New York, County of Suffolk, under index number 36317/08 to the extent of insurance coverage and for such other and further relief as this court deems just and proper. PLEASE TAKE FURTHER NOTICE, that answering affidavits, if any, are to be served upon the unsigned within seven (7) days prior to the return date of the within application. Dated: BELLMORE, NEW YORK September 7, 2010 Yours, etc. /s
JOSEPH J. PERRINI, III LAW OFFICES OF JOSEPH J. PERRNI, III Attorneys for Plaintiff, LINDA SUMMERS 2876 Merrick Rd. Bellmore, NY 11710 (516) 221-7900
TO: Vito Genna, Grand Prix Islandia, LLC, Clerk of the Court Successor in interest of United States Bankruptcy Court Innkeepers Financing for the Southern District of New York Partnership, III, LP, One Bowling Green 1600 Veterans Memorial Hwy. New York, NY 10004 Islandia, NY 11749 (212) 668-2870
Morenus, Conway, Goren & Brandman Attorneys for Defendants, Grand Prix Islandia, LLC, et al 85 South Service Road,Ste. 350 Melville, NY 11747 (631) 845-2600
James H. M. Sprayregan, P.C. Paul M. Basta, Jennifer L. Marines KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, NY 10022-4611 (212) 446-4800
Anup Sathy, P.C. (admitted pro hac vice) Marc J. Carmel (admitted pro hac vice) KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, Illinois 60654-3406 (312) 862-2000
UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF NEW YORK ----------------------------------------------------------X IN RE: INNKEEPERS USA TRUST, ET AL,
JOSEPH J. PERRINI, III, an attorney admitted to practice before the Courts of this State affirms the truth of the following under the penalty of perjury: 1. I am member of LAW OFFICES OF JOSEPH J. PERRINI, III, attorneys for the plaintiff in the underlying action entitled Linda Summers v. Grand Prix Islandia, LLC., et al, and as such I am fully familiar with the facts and circumstances of this action based upon a review of the case file and the investigation materials contained therein. 2. This affirmation is submitted in connection with Linda Summers application for an Order to lift the stay imposed by the Court on the action entitled Summers v. Grand Prix Islandia, LLC, et al, identified below to the extent of insurance coverage. 3. I make this affirmation in support of the within motion to lift the automatic stay concerning proceedings against Summers v. Grand Prix Islandia, LLC, et al pending in the Supreme Court, County of Suffolk, State of New York, bearing index #36317/08, to the extent of Grand Prix Islandia, LLC, Successor in Interest of Innkeepers Financing Partnership III, LP and Island Hospitality Management, Inc., Successor in interest to Innkeepers Hospitality Management, Inc.s general liability insurance coverage. 4. A negligence action to recover damages for serious injuries sustained by Plaintiff(s) as a result of an accident which occurred on October 9, 2005 was filed on September 25, 2008 in Supreme Court, Suffolk County under index number 36317/08. 5. Plaintiff, a sixty two year old female, sustained multiple injuries as a result the accident as follows: Left elbow injury requiring an ulnar nerve transposition operation; Left elbow puncture wound requiring two sutures; Scarring of the left elbow; Left elbow bursitis; Left elbow tenosynovitis; Left elbow pain, tenderness, numbness, edema, effusion, sprain, strain and loss of range of motion; Positive Tinels sign over the ulnar nerve at the cubicle tunnel; Myofascial pain syndrome with trigger points in the periscapular and arm region with extension of myofascial trigger points into the superior medial periscapular region and posterior lateral cervical spine; Left shoulder sprain, strain and pain; Left knee contusion and pain; Situational anxiety and moderate depression; Cervical, thoracic and lumbar strain, sprain and pain; Bilateral hip strain, sprain and pain; and, head pain, contusion, concussion and headaches. 6. A petition of bankruptcy was filed on behalf of Debtors, INNKEEPERS USA TRUST, et al, on or about July 19, 2010, automatically invoking a stay as to all proceedings against GRAND PRIX ISLANDIA, LLC., SUCCESSOR IN INTEREST OF INNKEEPERS FINANCING PARTNERSHIP III, LP and ISLAND HOSPITALITY MANAGEMENT, INC., SUCCESSOR IN INTEREST TO INNKEEPERS HOSPITALITY MANAGEMENT, INC., pursuant to Chapter 11 of Title 11 of the United States Code (the Bankruptcy Court) 7. This Affirmation is submitted in support of lifting the aforementioned stay to the extent of insurance coverage, as is provided in 11 U.S.C. Section 362 (d). 8. 11 U.S.C. Section 362 (d) provides in pertinent part: On request of a party in interest and after notice and a hearing, the Court shall grant relief from the stay provided under subsection (a) of this section, such as by terminating, annulling, modifying, or conditioning such stay- (1) for cause, including the lack of adequate protection of any interest in property of such party in interest.
9. A Plaintiff seeking modification of the Automatic Stay solely to establish the liability of an insured Debtor and to permit the case to proceed establishes cause under this section. In Re Johns- Manville Corp., 26 BR 420, 433 (1983 BC SDNY). Once cause has been established, the burden of proof shifts to the Debtor to demonstrate its entitlement to the Stay. In Re UNR Industries Inc., 54 BR 266, 268 (1985). 10. The Court must modify or lift the Stay where it determines that: (1) no great prejudice to either the debtor or the bankruptcy estate would result from the continuance of the civil action; and (2) the hardship to the plaintiff caused by the continuance of the stay considerably outweighs the hardship caused to the debtor by modification of the stay. Holtkamp v. Littlefield (In re Holtkamp), 669 F.2d 505, 508 (7 th Cir. 1982); In re McGraw, 18 B.R. 140, 142 (Bankr. W.D.Wis. 1982)
In re Industries, Inc. at 268. 11. In making this determination the following factors are to be considered: 1. Whether the civil action is connected with or will interfere with the bankruptcy proceeding,
2. Whether the debtor is insured and its carrier will provide a defense and indemnification to prevent prejudice to the bankrupts estate,
3. The interest of judicial economy, and
4. Whether the issues in the civil action require the expertise of the Bankruptcy Court.
In re Holtkamp at 508, 509.
12. Here, the action pending in the Suffolk County Supreme Court is not related to and will not interfere with the bankruptcy proceeding. Plaintiffs have agreed to proceed against the Debtors solely to the extent of Debtors insurance policy limits. Debtors insurance carriers have provided the defense in this litigation at no cost to the Debtor and are obligated to indemnify the Debtors. The attorneys handling the underlying personal injury claim for Debtors are Morenus, Conway, Goren & Brandman, Esqs. and they have advised Plaintiff through discovery that their clients are insured with a one million ($1,000,000.00) dollar liability policy. 13. The Plaintiff, who sustained a wide array of physical injuries as a result of the negligence of the debtors/defendants, should be expeditiously afforded her rightful day in Court before a jury. The issues to be determined are properly the subject matter of a State Supreme Court. 14. Where the Debtors are insured and the carrier is providing a defense and prosecution of Plaintiffs action would not interfere with the administration of the Debtors estate, leave to modify the stay should be granted. Foust v. Muson S.S. Lines, 299 US 77, 84 (1936). 15. For the above stated reasons, Plaintiffs motion to modify the Stay should be granted. 16. No prior request for the relief requested herein has heretofore been made. WHEREFORE, Plaintiff respectfully requests the within motion be granted in all respects and that this Court grant such other and further relief as it deems just and proper.
Dated: Bellmore, New York ____ _ __ /s___________________ September 7, 2010 JOSEPH J. PERRINI, III
STATE OF NEW YORK ) ss.: COUNTY OF NASSAU )
Jean Shaw, being duly sworn deposes and says:
I am over 18 years of age, I am not a party to the action, and I reside in Nassau County in the State of New York.
I served a true copy of the annexed Notice of Motion to Lift Stay on September , 2010, by mailing the same in a sealed envelope, with postage prepaid thereon, in a post office or official depository of the U.S. Postal Service within the State of New York, addressed to the last known address of the addresses as indicated below:
TO: Vito Genna, Clerk of the Court United States Bankruptcy Court for the Southern District of New York One Bowling Green New York, NY 10004 (212) 668-2870
Grand Prix Islandia, LLC, Successor in interest of Innkeepers Financing Partnership, III, LP, 1600 Veterans Memorial Hwy. Islandia, NY 11749
Morenus, Conway, Goren & Brandman Attorneys for Defendants, Grand Prix Islandia, LLC, et al 85 South Service Road,Ste. 350 Melville, NY 11747 (631) 845-2600
James H. M. Sprayregan, P.C. Paul M. Basta, Jennifer L. Marines KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, NY 10022-4611 (212) 446-4800
Anup Sathy, P.C. (admitted pro hac vice) Marc J. Carmel (admitted pro hac vice) KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, Illinois 60654-3406 (312) 862-2000 /s___________________________ Jean Shaw Sworn to before me this 7th day of September, 2010
_/s_____________________________________ Joseph J. Perrini, Notary Public, State of NY No. 02PE5069636, Qualified in Nassau County Commission Expires November 10, 2010
UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK -----------------------------------------------------------------X IN RE: INNKEEPERS USA TRUST, ET AL, CHAPTER 11 CASE NO. 10-13800(SCC) Debtors ------------------------------------------------------------ -----X
NOTICE OF MOTION TO LIFT STAY _________________________________________________________________________
Law Offices of Joseph J. Perrini, III Attorney(s) for Plaintiff, Linda Summers 2876 Merrick Road Bellmore, New York 11710 (516) 221-7900 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK ----------------------------------------------------------------------X IN RE: INNKEEPERS USA TRUST, ET AL,
ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY A motion having been made by LINDA SUMMERS. for an order pursuant to 11 U.S.C. Section 362(d) to lift the stay to of a certain proceeding against GRAND PRIX ISLANDIA, LLC, SUCCESSOR IN INTEREST OF INKEEPERS FINANCING PARTNERSHIP III, LP AND ISLAND HOSPITALITY MANAGEMENT, INC., SUCCESSOR IN INTEREST TO INNKEEPERS HOSPITALITY MANAGEMENT, INC., pending in the New York State Supreme Court, Suffolk County under index number 36317/08 to the extent of insurance coverage; NOW, upon filing the affirmation of JOSEPH J. PERRINI, III, ESQ. dated August 25, 2010, in support of the motion, and sufficient cause appearing therefor, and the Court having held a hearing on the Motion to Lift Stay on September 30, 2010, and due deliberation having been held, it is hereby ORDERED, that the Motion to Lift the Stay of a certain proceeding against GRAND PRIX ISLANDIA, LLC, SUCCESSOR IN INTEREST OF INNKEEPERS FINANCING PARTNERSHIP III, LP AND ISLAND HOSPITALITY MANAGEMENT, INC., SUCCESSOR IN INTEREST TO INNKEEPERS HOSPITALITY MANAGEMENT, INC. , pending in the New York State Supreme Court, Suffolk County, under index number 36317/08, is granted to the extent of the one million ($1,000,000.00) dollar Zurich Insurance Company insurance coverage liability limits afforded to defendants, GRAND PRIX ISLANDIA, LLC, SUCCESSOR IN INTEREST OF INNKEEPERS
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2 FINANCING PARTNERSHIP III, LP AND ISLAND HOSPITALITY MANAGEMENT, INC., SUCCESSOR IN INTEREST TO INNKEEPERS HOSPITALITY MANAGEMENT, INC; and/or any other insurance coverage applicable to the subject accident, and, it is further hereby; ORDERED, that the Proof of Claim filed by LINDA SUMMERS, with the Clerk of the Bankruptcy Court, One Bowling Green, New York, New York 10004, be hereby withdrawn. Dated: New York, NY September 30, 2010
Shelley C. Chapman, United States Bankruptcy Judge
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3 STATE OF NEW YORK ) ss.: COUNTY OF NASSAU )
Jean Shaw, being duly sworn deposes and says: I am over 18 years of age, I am not a party to the action, and I reside in Nassau County in the State of New York. I served a true copy of the annexed Proposed Order on September 7, 2010, by mailing the same in a sealed envelope, with postage prepaid thereon, in a post office or official depository of the U.S. Postal Service within the State of New York, addressed to the last known address of the addresses as indicated below:
TO: Vito Genna, Grand Prix Islandia, LLC, Clerk of the Court Successor in interest of United States Bankruptcy Court Innkeepers Financing for the Southern District of New York Partnership, III, LP, One Bowling Green 1600 Veterans Memorial Hwy. New York, NY 10004 Islandia, NY 11749 (212) 668-2870
Morenus, Conway, Goren & Brandman Attorneys for Defendants, Grand Prix Islandia, LLC, et al 85 South Service Road,Ste. 350 Melville, NY 11747 (631) 845-2600
James H. M. Sprayregan, P.C. Paul M. Basta, Jennifer L. Marines KIRKLAND & ELLIS LLP 601 Lexington Avenue New York, NY 10022-4611 (212) 446-4800
Anup Sathy, P.C. (admitted pro hac vice) Marc J. Carmel (admitted pro hac vice) KIRKLAND & ELLIS LLP 300 North LaSalle Chicago, Illinois 60654-3406 (312) 862-2000 _______/s____________________ Jean Shaw Sworn to before me this 7th Day of September, 2010 __/s______________________ Joseph J. Perrini, Notary Public, State of NY No. 02PE5069636, Qualified in Nassau County Commission Expires November 10, 2010
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4
UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK -----------------------------------------------------------------X IN RE: INNKEEPERS USA TRUST, ET AL, CHAPTER 11 CASE NO. 10-13800(SCC) Debtors ------------------------------------------------------------ -----X
ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY _________________________________________________________________________
Law Offices of Joseph J. Perrini, III Attorney(s) for Plaintiff, Linda Summers 2876 Merrick Road Bellmore, New York 11710 (516) 221-7900 LAW OFFICES OF JOSEPH J. PERRINI, III 2876 MERRICK ROAD BELLMORE, NEW YORK 11710 TELEPHONE: 516-221-7900 FAX: 516-221-1746 Vito Genna, Clerk ofthe Court United States Bankruptcy Court for the Southern District of New York One Bowling Green New York, NY 1 0004 Dear Mr. Genna: September 7, 2010 Re: In Re: Innkeepers USA Trust, et al Enclosed please find a hard copy of the Proof of Claim, Notice of Motion to Lift Stay returnable before Judge Shelley C. Chapman and proposed Order. In addition, we are enclosing a marked disk with these documents in "pdf' format. As per your instructions, we are enclosing the filing fee in the sum of$150.00. Our office will appear on September 30, 2010, the return date. Kindly file same on our behalf. JS Encs. Thank you for your courtesy in this matter.
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