Opinion
CIVIL ACTION NO. 3:99-CV-0628-G.
May 2, 2000.
ORDER
Before the Court is Plaintiffs' Emergency Motion for Injunction and Brief in Support Thereof (the "Motion").
The Court has considered the Motion, the evidence cited in support thereof, and other pleadings and matters of record in this cause, in the cause formerly pending in this Court styled Nikko Trading of America Corporation, et al. v. WasteMasters, Inc., No. 3:98-CV-0048-G (the " Nikko action"), and in the cause pending in this Court styled Jerry B. Morris, et al. v. Scott Bush, et al., Civil Action No. 3:98-CV-2452-G (the " Morris action"). The Court finds that the Morris action and the Complaint in Intervention and related proceedings in the Nikko action are closely related to this cause.
The Court incorporates by reference the findings of fact and conclusions of law in its April 19, 1999 Modified Order in the Nikko and Morris actions.
This Court finds that Defendant Malcolm M. Kelso, by filing his Suggestion of Bankruptcy in this cause on or near April 4, 2000, has attempted to obstruct discovery in this cause, to undermine this Court's orders (including this Court's March 14, 2000 order regarding discovery, pre-trial preparations, and trial of this cause), and to otherwise interfere with this Court's jurisdiction. This Court finds that such Suggestion of Bankruptcy was frivolous, filed in bad faith, and constituted an abuse of judicial process.
This Court further finds that Defendant R. Dale Sterritt, Jr. has previously attempted, and continues to attempt, to use the United States Bankruptcy Code and the automatic stay provisions thereof, for improper purposes, calculated to interfere with this Court's orders and to undermine its jurisdiction. This Court finds that, most recently, Defendant R. Dale Sterritt, Jr. has attempted to solicit bankruptcy counsel for the express and improper purpose of obstructing discovery and interfering with the trial of this cause and otherwise interfering with this Court's orders and undermining its jurisdiction in this cause.
This Court further finds that Defendant Malcolm M. Kelso is, in effect, acting as legal counsel to Defendant R. Dale Sterritt, Jr., giving Sterritt direct commands regarding what actions to take or to desist from taking in this cause, and that Sterritt has followed such commands.
It is therefore ORDERED pursuant to the All Writs Act and this Court's inherent powers that R. Dale Sterritt, Jr., Larry Sterritt, Edward W. Roush, Jr., Malcolm M. Kelso, Fred J. Royer, Jr., Richard D. Sterritt, Sr., Sarah Sterritt, 20th Century Holdings, Inc., Sterritt Properties, Inc., Suresh Chainani, Kanayo Wadhwani, Dresco Investments, Inc., Robyn Ann Straza-Sterritt, Richard Straza, and all persons acting in concert with any of the foregoing, are RESTRAINED AND ENJOINED from:
(a) filing any new lawsuit involving or concerning WasteMasters, Inc., Continental Investment Corporation, or any party to this lawsuit or the subject matter of this lawsuit in any jurisdiction other than the United States District Court for the Northern District of Texas, Dallas, Division; or
(b) filing or causing to be filed any bankruptcy petition, voluntary or involuntary, where the debtor in such proceeding is any party to this lawsuit
without first seeking and obtaining from this Court an order permitting such action.