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Case 1:04-cv-00725-RPM
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CoutAddrssi 1437BamockSteet Denver, CO Phone Number: 720-865-8301 Plaintiff: EDWARDC. SEBESTA" IndividuallyandOnBehalfofAlt Ot$ers SimilarlySituatd
COURTUSE ONLY No. Case 0l-Cv-6281 9 Division/Courtoom:
DEfCNdANts: RICHARDE. SCHADBN. RICTIARD SCHADEN. F.
FREDERICK SCHADEN, H. L. BROMBERG.EzuC J.
I.AWRENCE, JOHNJ.TODD. BRAD A. GRIFFIII andTHE QUtZNO'SCORPORATTON Prepared by: Attomyfor:
NaIIle:
MichalHepworth DeferdantTheQuizno'sCoryoration Thcodoro Altman^4iohael Hepworth PiperRudnick Marbury& Wolfc l25l Avenucofthe Americas New York, NewYork 10020-1104 (212) 835-6060 (212) 835-6001 tleodore.alunan@pipemrdnick,com MichaalR. Daigle ThcQui.zno's CoDoration l4l5 LarimrSt. Denver, 80202 CO (720) 359-3300 (720) 3s9-3395 mdaigl quiaos.com at MichaelR. Daigt(#31798)
AddEss: Phone No,: FaxNo.: E-Mail: Name: Address: Phooe No.: FaxNo.: E-Mailr Atty. Reg.#
REPLY IN SUPPORT JOINT MOTION TO CONSOLIDATE OF AND REOUESTFOR HEARINC AND EX}EDITED RULING
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Defendaot Quizno'sCorporador Thc ('Quizno's"),joinedby all ofthe othrnamed hereby rcpliesin defendants, with the consent approvat and and ofPlahtifiEdward C. Sebost4 ofthe loint Motionto Consolidate ActionNo. 02 CV 2598(the"Dissders support Rights Civil (the"Sbesta Litigation) into lhis first-fiIdlitigation 6s Litigatior'), atrdstales follow5: 1. On April S,20m thDefendants heFin fild thehJointMoiiol to Consolidate. On thesame dat,Quiano's, Petitioirin thDisseotrs fto RightsUtigatio!, filed its MotioDto Consolidate thatcaso. in 2. PlainftrSebsah'3 stipulatldto consolidatiotr otr ofth cases. April 25, 2002, theReglondents Case 02CV 2598filed anOpposition Motionto Consolidate, in No, to 3. Today,Quiztro's filed a Rplyin Support atrd ofJoint Motion!o Cotrsolidate Request I{earin8attdExpeditcd for Rulingin thoDi$renters RightsLitigation, TheDefetdant! $riththeconsent 4grcenertofPlaintiffSebest4hereby hercin, and adoptthearyumcots fodl set in Quizro's Replyandinco4orateit herein rcference, copyof Quizno's by A Rplyin Case No. 2598is attached 02 CV hereto. the Wherefole, paniqs hereto requst theJointMotoo to Consolidst Civil Actio[ that No. 02 CV 2598into this fi$t.filed actionbsanted. DATEDftis l3'dayof M.y,2c/|/2.
Rspctfully submitted,
MichaelHcpworth The Attomeyfor Defnd{nt Quizno's
Attomeys DefNdants for Richad E. Schadn. Richad F. Schadn Frcdelick [4d H. Schaden
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DeanCq-''-----J. Attotncys MarkL. Bromborg, Eric for Lawrence, John Todd J. and
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CERTIFICATE SERVICE OF IN I hereby cenifytlut a bueand oonrctcopy ofthisFGPLY suPPoRT JOINT oF MOTION CONSOLIDATE RBQIJEST HEARtr.IG HOEDTTED TO AND FOR AND RULING served U.S.Mail,postsg; was prcpaid thc-l:lday ofMsy,2002, by otr addrcssed io
thefollowitrg: Kip B. Shumar JeffteyA. Brsns Dyer & Shumn, LLP 801Eastl?tlt Avenue Denver. CO 80218-1417
JOelu. relIer
MatthewM. Houston Wechsler Harwood Halebiao FefferLLP & 488Madisod AveNe New YorlL NY 10022 CarynMazin Pl Broback ege!& Harison LLP 370Interlooken Blvd., Suite500 Broomfield, 80021 CO
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DISTRICTCOURT'CITY AND COIJNTTOF DENVE& COLORADO CounAddlcas: 1437 Bannock StEct Denver. CO 80202 PhoncNu$brf: 72G865-t301 Pctitionar: Thc QuiaD's Corporstior, Colorado a Corporatio!
Raspondents: William S.Fagan; Charl..tM. Albet Pahici. A. Albe[ CarolA, Arr$tong; LeighBock C. Lyn CroomqJoAtm Robclrs Croot'g;GaryCowino;Manha JamrsA. Dvorah Fagan Cousino: Capital, Inc.i Irura Appleby Fagan; Andrcas kwsoni LBT Entcrl,riscs, Mary Inc.; Icenan Slurkic;Teny Robinson; Sandstone Vcnturrs.LLCi ard Thomas O. Shnkiea//a ThomrsO. Sturkie M.D. Attolneysfor: Name: Address: Phonc No.: FaxNo.: E Maill Name: Addrcssr Phone No.: FaxNo.: E-MBil: Atw. Res.# Thc Quiano's Corporation Theodore Altm$ Michr.l R. Hcpeorth PipcrMsrburyRudnick WolfeLLP & l25l Avcnucoftlrc Arncricss NewYork Ncw York 10020-1 104 (212) 835-6000 (212)835-6001 [email protected] Michael.hep$r'orth@pipenu&ickc.n Chcst.yKcy Cub m Motr, Giles,OKeefe,Vcrmcir& Gorrcll LLP 1225 Seventeenth Steet,29thFloor Dcnvcr,CO 80202-5529 (303) 292-2900 (303)29245l0 bud.culp@mo,l.w.com 18t39
COURT ONLY /r USE No Case 0rCV2598 Dvisiory'Courfoom:
REPLY IN SIIPPORTONJOINT MOTION TO CONSOIIDATE AND REQUESTFOR IIEARING ANI' EXPEDITEDRIILING
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('Quiz!o's"), with thc support Petitioner Quizno's The CorpoBtion ofill ofthe panirsin Litigtion ), CNse 0l-Cv-6281, Courboom Scbcsta Ouizno's. al. (0tc'Scbesta No. 9, v. ct Rights hereby the Eplies in suppori ofthe JoiDt Motionto consolidstc hstantDissnters theEofstates follo*,s: as Litigalioninto thefirst"filedScbesta Litigation,endin support IDaroductlotr why offer iE In thcir response hricf, theRespordents two reasons consotdation allgadly public not appropriate. Fi$t, thcy claimthatthe1awsuit6, whichfomer Quiano's in shareholders challengcd faimess have in the ofthe Decmber 2001merger whichQuizno'6 2l, p. ageedto paythem$8.50per share, have"virtuallynothing in common,"Rosponse l. [] "dnrnaticallymorcexpeNivo, they timc Second, olaimthatmnsolidation make will theircasp consuming burdensome." and Response 2. Neitherargument merit, p. has Argumort l. The Strtrdrrdfor ConlolidatioD. "\vhen actions involvinga common question oflaw or factalepnding beforethecourt. . . it mayorderall lhe actions similar consolidated." Colo,R.Civ.P. 42(a).LitigationiDvolving witnesses, gnerally documentary cviderce, parties and be should consolidated, 9=g$99 (foreclosure ModsaseInvcstments. Com.v. BattleMountain action Corc.,2001WL 747569 andartiol to quiettitle proprly (cet. c6n6olidated) pending); lli$lAtrygiigla!0p-lSujl (^ctions wells willowsWEter District, P,2d 254, (Colo.l99l)(En Banc) 259 involving 818 localed same prcpertyconsolidated); on @ 172P.2d
(Colo.1946)(t,anc)(consolidationofactions'\,i,hichsppeartobeoflikenatureand 958,965 concem themselves thesame similarquestions within thesound $ith rests or discretion the of trial coun,andits actionthcrcon not bedisturbed appal will on except theabuse for of
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diEcrctior'). Followingconsolidstion, trial counnay'mako 6uch thc oders concemilg ploceedings thereinasmaylcrd to ayoidumec3sary or delay." Colo.RCiv,P, 42(a). costs U. TtreLawsulblpvolvc Commo!Ou$tionsofFrct Thereis no question tlrcDissetfts th4t RightsLitig8tionard theSebesta Litigation involvecommon questions fact. Thtransaction dispuisis iderfical;thcwihesses of in necessary dctenninc whethrrQuizno's to properly acte.d whenit agred payits formerpublic !o shareholdas are $8.50per sharc thesame; RespondeDts' and codefttion,apartftom Quizno's, that"not oneof [the] partie [to theSebesta is, Litigationl6rein theAppnisal Case" at besl, highlymislesding.AlthoughplaintiffSebesta notyct sought has cdification ofthe class, hc brought action"asa classaction, bohalfofall stockholdcrs his on ofQuizno's" whowre required selltheir shars a resultofthe December 2001mcrge!tsansaction. to as 21, Complainr para.16. Con6equcr{ly, ofthe Respondcnts thr Disrentels in RightsLitigationaremmbtrs A!! pl.intiffclass. SC9 ofthe putative tableappended hcreioasExhibitA. In fact,thetotalnumber of shareholders leplcsented each litigationis virtuallythessme, in consisting of446,846in this litigationand501,396 Sebest4 difference only 54,550 in a of shares. ThsRespondents claim Id. thattheDissentrs RightsLitigationandtheSebcsta Litigatiol 'Vttually havenothing[] ir common" just wrong.' is
I As a practical the qustion law. In theinstant matter, crscsalsoshere comrnon of a litigatior! thequestion beforethc Courtis whethgr Respondents recaived valuewhen fair the paid thern$8.50pr share.With thcdenialofplaintifPsrcqueEt injurctivc relief, for Quizno's theonly qucstion remaining theScbesfa in Litigationis wlelher Quizno'sandits agents breached fiduciarydutyto its sharcholdcrs, thi! whetr to includilg thcRespondcnts, theyagreed paythem$8.50per sharc.In bothcascs, formersharholders moremoney seek for Quizno's theirthars,Otrly thelegaltheoris paymeot additional employed attempt extract to to diffrs.
N Q\QUTZNOS\[email protected]*}f lsd\Retly CoMli.Lcv2.
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lll.
There ir No PreludiceaoRespopdetrtr Ouhdeiqhirpthe BeBclitofConsolldatioo. will RespondeDts and contntion consolidatcd that discovery prc-trialproceedings make
"dramatically p. (RespoDsc 2) is their case moreer$ensiva, consuming burdensome" time atld 'to misplacd, FiNt, thCourtis cNnpowerediseuc costs equally to orders avoidunnecesssry and delay." Colo.R-Civ.P. lhat offair value 42(a). Second, recognition (a) thcdctrmi.ation in reachd theDissentrs in RightsLitigationmayhelpto deteminethc amount if ofdamages, any, to whichSebesta be edided,thereby may truncating issucs betriedin thaSebesta to the LitigatioD, (b) to ensulc consolid8tioo notmatcrially and that impedc prosecution the ofthe will Dissnrers RiEhts Litigation,theparties thc Sebesta and that Litigationagree recommend the in hearing theCoufi in this sccond-filed to litiSatiol beset!qb!g thejury trial in theSebeta Litigation. Concu$ntly, Respondents' contention theywill beundulyprejudiced that by consolid,ation simplydoesnotwitl$tsndsclutiny. Conclusior p.2. Respondents contend 'tongolidationwill accomplish nothing." Rcsponse Apad that from resulting (a)onelitigationbetwelQuizno's itr fomer sbarcholders in ratherthatrtwo, and (b) onejudgerather thantwo, (c) oncsetofdiscovcryrather thaotwo, and(d) onruling on the question common whether per was to offer to pay$8.50 share its formershareholders Quizno's fai!, Ore Responderts mighthavea point. Quizno's,joined allofthe padiesto theSebesta by Litigation,lespectfully requests its toint Motionfor Consolidation granted, that be
NIQ\QUZNOS!\ppni$l\Plad\R.rly
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Date
Attomcyfor TheQqizno'sCoryoratio!
CERTITICATE OF SERVICE I hereby cartirythaton thefday of May,2002, true8rd correctcopyof the e above foregoing and Rplyin Support ofJoint Motionto Consolidate Request Hcarilg and for andExpedited Rulingwassenlvia U.S.Mail, postagc prepaid thefollowitrg: to MichaelS.MCarthy Faegle Bensolr LLP & Republic Plaza 370l7u St.,Sre. 2500 Denver, CO 80202 Jeftey A. Chase Jacobs CtaseFrick KliDkopf& Kelly LLC 1050 st..ste.1500 17n Dcnver.CO 80265 JayHorowitz Horowitz& Wake 3950 Republic Plaza 370l7'" Sheet Denver. CO 80202
N:\Q\QUl2NOSUppaieNPled\Rrtly [email protected]
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