Free Motion for Summary Judgment - District Court of Colorado - Colorado

Case 1:04-cv-00725-RPM

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Case 1:04-cv-00725-RPM

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Coud Addxess: 1437Ba.onock Shel Denver,CO PhoneNurnbe!: 720-865-8301

Plaintifi:

EDWARD SEBESTA, C. Iodividually OD and BehalfofAll OtheFSimildly Situatad

CO1JRT ONLY A USE No. Case 0l-CV-6281 DMsiob/Courhoomt 9

Defeqdants: RICRARD SCIIADEN, E. RICI{ARD SCHADEN, F. FREDERICK SCHADEN, H. L. BROMBERG. ERIC J. LAWRENCB" JOIINJ.TODD, BRADA. CRIFFIN, THB ard CORPORATION QTJZNO'S PrQared by: Attomey for: Name: Address: Phone No.; FaxNo.: FMailr Name: Address: Phone No.i FarNo.: E-Mailr Atty.Reg. #
Defcdmt The Quiaro's Coporation Theodore AltDan^4ichaell{epworth

PiperRudniot Martury& Wolfc 1251 Averueoft[e Americas NewYork,NewYork 10020-1 104 (212) 835-6060 (212) 835-6001 [email protected] Michacl Daigle R TheQuizoo's CoDoration l4l5 Larim.r St" Derver,CO80202 (720) 359-3300 (?20) 359-3395 ndrigle at quizoos,com Michacl Daigto R. {#31798)

REPLYIN SUPPORT JOINT MOTION TO CONSOLIDATE OT AIIII RSQIJEST TOR EEARINGAND EXPEDITEI}RULINC

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DefendaDt Quizno's The Corpontioq f,eui.alo's'),joitrcdby aUofth6 othrnamed defendants, with theconscnt approval and and hereby ofPlaiitiffEdwardC. Sebcst4 replie,s iD support thJointMotiol to Consolidate AcdotrNo.02 2598(the,,Dis6ente$ of Civil CV Riehls Litigation iotothtuftsFfiled litigation(the',Sebesta Litigation'),andstate$ follows: as ) 1. OtrApril S,2002 Defendaors the herein filed0reirJoitt Moiionto Cotrsolidate. Onthesame date, thc in 6ledits Motionto Rights Litigation, Quizno's, Petitioner thoDisseoters Consolidate th.t c6sein 2, PlaintiffScbesta stipulsted ooasolidaJion caler. Orr has to oftho Ap 25,2002, theRespondentsCase 02CV 2598liled anOpposition Motionto Consolidate. in No. to

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3. Today, in Quizro'sfileds,Reply $lfpon ofJointMotionto Coftolidateand Requst llearilg andEreedited for Rulilg in thoDirsnters Right Litigetion.TheDefendants herein, thcconsent agrccment with dnd ofPlaintiffSebest4 adopt argum.ots fo*h hereby the st in Quizro'sRplyandhcotpo[ate belehby refercnqc. copyof Qui2no,s it A R@lyin Caso No. 02CV 2598ie attaohcd hereto. Wherefore, parties the heteto .equest lhJointMotionto Consolideta Action that Civil No.02CV 2598intothistust-filedaction qra$ed. be DATEDthis l"r dsyofMay, 2002. Respectfirlly sub&itte4

Mir*re,u tlepoarrr /exe -TfiffiiEcDwortEAttomey for Defcndant The Q}izno's

Richard Attomey6 Dcfendads B for Schado6trd RictsrdF. Schadn Frcdrick H. Schadeo

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Attomeys Msr* L. Brombor& EIic for J, Lawtqfe, andJohn Todd J.

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CERTIFICATEOI' SERVICE I hereby cedirythata rue andconcctcopyofthis REpLy IN SuppORT JOINT OF MOTIONTO CONSOLIDATE REQUEST HBARD,IG AND FOR AND E)GEDTTED RULINGwasserved U.S.Mail,postage by p.Fpaid thfday o! of May,2002, addrcssed to thefollowiag: Kip B. Shuma! JefFey Brens A. Dyer& Shuman, LLP 801Eastl?th Avenuc Denver, 80218-141? CO JoelC. Feffer Matthew Houston M. Wechsler Harwood Halcbian Fffer & LLP 488Madison Avenue NewYo*. NY 10022 CaryrMazin Brbcok lhleger & HdrisonLLP 370hterlockcn Blvd.,S$ite500 Bloolnfield" 80021 CO

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DISTRJCT COURT, CITY AND COUNTY OF DENVER" COT,ORADO CourtAddrca3: 1437 Strect Bannock Denvcr, 80202 Co PhoneNudbcr: 72&865.8301 Pctitioncr: ThcQuizro'sCorporation,Colorado a Corpot!tion

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Rcspondcnts: WilliamS.Fagani M. Chades Albr; Patsicia Albe[ Cuol A. AmstonS; A. LeighBo.k; C. Lyn Croomsi Anrl Jo RoherE Martia Croolrs;6sry Cor$ino: Cousinoi Jam3 DvorakFrgan A. Capitel, Inc.;bufa Alplcby Fagan; Andrls Lanson:LET EntcDrisos, Mary Inc.i Keenan Snfkic; TarryRobinson; Vc'rturcs. Sandstoc LLC:andTho.ras O. Thomas Sturkic Stl|Ikica./Va O. M.D. Attomeys for: Namc: Addrcss: Phonc No.i Fax No.: E-Mail: Nrrnc: Add.ess: Phone No.: Fex No.: E-Mail: Atty. R.!. # TtreQuizro'sCorp6ation Theodorc Altm'|lr MichsclR. Ilcpwo'th Pip.r Marbury Rudnick WolfeLLP & 1251 Awnu. ofdrc Arncricas NcwYork NcwYo* 10020.104 I (212) 835.6000 (212) 83r.6001 [email protected] Michsel.hepworor@piperu&ick.c.n ClEslcy KyCuIpItr Moy., Cilst OKeef.,Vcnncir Corrcll & LLP 1225 ScvEnteenth 29thFloor Sace! Denvcr, 80202-5529 CO (303)292-2m0 (303) 29245r0 [email protected] 18139

COURTUSE ONLY
c5!! No.02Cv2598 Dvision/Courrroorh:

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REfLY IN SUPPORT JOINT MOTION TO CONSOIJDAIT OF AIID REQTJEST SEARJNG FOR AIID EXPEDI1EDRT'IING

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('Quizno's'), with Oc Euppod PctitionerTheQuizno'6Corporation of&ll ofthe psni$ in No. 01-CV.6281, Case Coufboom9, Sebest. Ouizno's.et al. (tlE "Sebesta v. Litigatio!'), herebyrcpliesin supponofthc JoiD!Moiion to Consolidatc itlsra Disse en Right! thc Liligatiotr hto the firt-filed Sebcata Litigarion,andin supportthcreofstst$ as follows: Itrlroductlo! In their tesponse bdef, the Respondents two reasons offer why consolid.lion is alltedly not appropriats.First, they sl&imthat the lawsuit6, which formerQuizno'spublic in sharcholders havechallcng.dthe fairness ofthe De ember21, 2001mergerin vhich Quiztro's ageedlo pay thet! $8.50pei sharqhav"virtually nothing0 in common." Rosponse 1. p. Second, theyclairu that coDsolid.tion makethei. case"dramaticallyrnorcexperuivo, will timo consuming burdensome." and Response 2, Neitherargumcnt merit, p. h8s , Argumetrt

Tbe Strudardfor Copsolidetlor. "Whcn actionsinvolving a common question oflaw or fact arependirg beforcthc coun .

. . it may orderdl theactionsconsolidated." Colo.R.Civ.P. 42(a), Litigation involviDgsimilar wiftesses,doclrmentary and evideBce, particsgencrallyshouldbeconsolidated. 9,g. S Morteaqelovestments. Co!!. v. BattlcMountainCorp.,2001WL 747569(forclosueaoiorr andactionto quiettitle propcrlyco!6olidated) (cerr.pending);MissionVeiio Comoaav v Willows WaterDistric! 818P,2d254,259 (Colo. l99l) (tr rdlc) (actionsitwolvint wells Iocaled ssrno propertyconsolidated); on Willv v. AichesonT&S. F. RailwavRv. Co., I ?2 P.2d '\^,hichappear be of like naturcand 958,965 (Colo. 1946)(tr ,aDc) (cDnsolidation actions of to concemthemsolves with the $snc or simiLr questions rest6 {,ilhitr th sounddiscretionofthe trial court,andits actio! thereon not be distulbed apperlcxceptfor thc abuscof will on

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discraion.'), Following consolidation, tlial oourt thc ordusconceming may'trak sucb procegdints therein moytendto avoidunnecc.sary ot delsy." Colo.R.Civ,p. a3 42(a). cosh II. TheL.wlultslovolve Common Oueltiom oIFact There noquestion tlrcDissenters is thst Rights Litigation theSebesta Utigation rnd involve questious cornmon offact. Thehansaction dispute ideltical;thcwitresses in is nec$sary detemrine whethe! to propcrly when aSreed payirsfonoer !o public acted it Quizno's shateholders pershar thesarne; Respoidents' $8.50 ale apart ard contention, ftomQuizlo's, that'hot oneof [the]palties lhc Sebesta are Litigation] h dteAppraisal Case" atbesr, is, lto hi8hb misleading. plai iffSebesta notyetsought Ahhouh ha6 ofthe class, hc cofiificatiotr brought actio[ "a6. cla8.actior!onbhalfofall sDockloldersQuizno's" were his who of requird selltheirshares aresult to ar ofthe Drcember 2001 hansartion. 21, Complaiot mrger para.16, Conse4ucntly,4!! Respondcnt! theDi-ssedters ofthc in Rights Litigltio! aremembelt plaintiffclass.59qtable oftheputativc appended hcreto ExhibitA. In facl thtotalnumbr as of shareholders reprcsented cach litigationis virtu4llythcsamqconsisting in of,146,846 this in litigationand501,396 Scbesta,diffcrenca in a sharca. TheRsspondents ofonly 54,550 claim U. "viduallyhave thatlheDissenteN Rights Litigarion theSebesta and nothing ir Litigation [] common" just wrcng.' is

'Aiapracticalmatter,thecasosalsosbareacom[ronquesdonoflaw. Itl theirlstant litigatio4lhgquesrion before Coudis whethcr Rerpondcots rpceirad valucwhEn thc frc fei. paidther! $8.50 share. p.r Wilh thcdenidl ofplaiDtif8 laqucst isiunctivo fo! relieq Quiaro's lheor y qu.stionromaidtgin UrcS.besta Utigatiod whothcr i6 andits agents Quizto's breached fiduciary thcir dutyto its shsreholdcrs, whld isotudilgth. Respondcotg, theyagcedto paythem$8.50 sha.c.h bott casa!, pei sr.k Quizro'sformq Sarcholdcrs mor! non6yfor theirshaiqr.Onlythclgaltheorics enployed anernpt exaact paymc!$ to additional to diffars.

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lII.

Therc is No Preludice to RipopdtrtsOutweiphiopthe Bepellt of Comolldallop. Respon4snts conte ion lhat corsolidatcddiscoveryandpro-trialprocecdings make will

(Responsc 2) is p. their case"dr.anaticallymoie e*pen6iv, time consuining burdetlsomc" ard equallymisplaced,FirEt,thc Court is empowered issuooders'lb avoidunnecssary to c4stsand delay." Colo.R.Civ.P, 42(a). Second, re.ogrition that (a) thedctrnrination fair value in of rached the Disserte,sRightsLiti9tion rnayhelp to determine amountofdanages,ifany, in the to whicb Sebesaa b ntitled,threbytrunsating issucs bc tried in ths Sebesta may the lo Litigatioq andO) to ensurcthat consolidation not materiallyimpedcthepmsecution will ofthe Dissenfers RightsLitigatiotr lhe partiesin th Sebesta Litigttio$ 4g!eeandrccoBunend the that hearingto the Coult in this sccond-filed litigation be setbg!!!g thpjury bial in the Sebesta Litigatiol Conourendy,Rspondqlts'contetrtion they will bo undulyprejudiced that by consolidalionsi$ply docsnot wi0Ntrnd scrutiny. Conclu!totr Responderts p.2contendthst "consolidation will accomplish rothing." Rsponse Apart from resultingin (a) onlitigatorl between rathcrthant\,/o, Quizno'sandits forme! sharcholdds (b) oncjudgo rathe.thantwo, (c) ohr setofdiscoveryralhetthantwo, ald (d) onc ruling on the collmon question whetherQuizno'soffer (o p.y $8.50per sharcto its formershareholders was fair, lhe Respondents might havea point. Quizno's,johed by all of thepsrtie6to th Sebesta Litigatio4 respeotirlly requsts irs toint Moaionfor CoDsolidstion garlted. liat be

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Attomey TheQuizno's for Corproration

CERTIFICATEOF SERVICE I herEby certifythatonthefdzy of 'May, 2002, trueatrdconect a copyof the above foregoing and Replyin Suppod JointMotionlo Consolidate Reque*for Hcaring of arld ard Expedit.d Rulingwassent U.S.Mail, postagc via Fepaidto thefollowing: MichaelS.Mccarthy Facgre BeNooLLP & ReDublic Plaza
Dctlver.CO 80202 Jeffiey A. Chase Jacobs Chase FicL Kleinkopf & Kelly LLC

3?a) st., 25oo l7s sre.

t050170sr..sre.1500 Dnvr, 80265 CO JayHorowitz Hobwitz & Wake 3950 Republic a Ptaz 370l7i" Sheer Denver. CO 80202

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