IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE
In re ;
THE IT GROUP, INC., : Chapter 11
: Bankruptcy Case N0. 02-10118-MFW
Post-Confirmation Estate :
JOHN ACCARDI, et al., :
Movant/Appellants, :
v. : Civ. Act. N0. 04-146-JJF
IT LITIGATION TRUST, successor:
in interest to IT CORPORATION,:
IT GROUP, INC., and their :
subsidiaries in bankruptcy, :
ANTHONY DeLUCA, FRANCIS :
HARVEY, HARRY SOOSE, and :
CARLYLE PARTNERS II, LP, et :
al., :
Respondents/Appellees. :
ROCHELLE BOOKSPAN, :
Movant/Appellant, :
V. I
IT LITIGATION TRUST, successor; ,
in interest to the IT GROUP, :
INC., et al., :
Respondents/Appellees. :
MEMORANDUM ORDER
Presently before the Court is an Emergency Ex Parte Request
Of The Accardi Appellants And Rochelle Bookspan For Temporary
Stay Of Order Releasing IT Trustee From Reserve Order And
Authorizing Distribution Of Schedule C—I Reserve, And For Order
Case 1:04-cv-00146-JJF Document 38 Filed 10/13/2005 Page 2 013
Setting Briefing Schedule; Motion For Stay, Pending Appeal, Of
Enforcement Of Orders Dismissing Adversary Proceedings, Of Order
Releasing IT Trustee From Reserve Order And Authorizing
Distribution Of Schedule C—1 Reserve; Request In The Alternative
For Temporary Stay Pending Filing Of Request For Emergency Stay
with The United States Court Of Appeals For The Third Circuit
(D.I. 37). By their Motion, Appellants request the Court to
issue an immediate temporary stay of enforcement of the October
7, 2005 Order issued by the United States Bankruptcy Court for
the District of Delaware releasing the IT Trustee from the
requirement that it maintain the Schedule C—I Reserve and
authorizing distribution of the reserve.
At the September 6, 2005 hearing and in the Order dated
October 7, 2005, the Bankruptcy Court denied the Accardi
Appellant’s motion for a stay pending appeal, finding that the
Accardi Appellants lack probability of success on the merits and
that the balance of the harm falls on the estate, because it
is holding funds on account of disallowed disputed claims, which
is not required under the Plan. The Bankruptcy Court also
concluded that the risk of harm to the Accardi Appellants of
non-recovery is slight given the current pendency of the Estate
Causes of Action in excess of $70 million. The Court agrees with
the rationale set forth by the Bankruptcy Court and likewise
concludes that a stay pending appeal is not warranted.
However, the Court is cognizant that Appellants have a right
Case 1:04-cv-00146-JJF Document 38 Filed 10/13/2005 Page 3 013
to appeal this Court's affirmance of the Bankruptcy Court’s
denial of the stay. Accordingly, the Court will stay this Order
denying a stay, for a period of approximately ten (10) to allow
Appellants an opportunity to file an appeal of the decision to
deny a stay pending appeal with the Third Circuit.
NOW THEREFORE, IT IS HEREBY ORDERED this _!;?
I. The Emergency Ex Parte Request Of The Accardi
Appellants And Rochelle Bookspan For Temporary Stay Of Order
Releasing IT Trustee From Reserve Order And Authorizing
Distribution Of Schedule C—l Reserve, And For Order Setting
Briefing Schedule; Motion For Stay, Pending Appeal, Of
Enforcement Of Orders Dismissing Adversary Proceedings, Of Order
Releasing IT Trustee From Reserve Order And Authorizing
Distribution Of Schedule C—1 Reserve; Request In The Alternative
For Temporary Stay Pending Filing Of Request For Emergency Stay
With The United States Court Of Appeals For The Third Circuit
(D.1. 37) is DENIED.
2. This Order is stayed until October 26, 2005, to allow
Appellants time to seek a stay from the Court of Appeals for the
Third Circuit.
Case 1:04-cv-00146-JJF
Document 38
Filed 10/13/2005
Page 1 of 3
Case 1:04-cv-00146-JJF
Document 38
Filed 10/13/2005
Page 2 of 3
Case 1:04-cv-00146-JJF
Document 38
Filed 10/13/2005
Page 3 of 3
United States Free Forms
Canada Free Forms
United Kingdom Free Forms
Australia Free Forms