Opinion
Case No. 02-13533 (AJG) (Jointly Administered)
December 12, 2003
ORDER MODIFYING AUTOMATIC STAY TO PERMIT ARBITRATION PANEL TO ISSUE DAMAGE AWARD
Upon the motion, dated October 8, 2003 (the "Motion") of Teleserve Systems, Inc., ("TSI") for entry of an order modifying the automatic stay to permit fmalization of a proceeding styled Teleserve Systems, Inc., Petitioner, v. MCI Worldcom Network Services, Inc. And Teleconnect Long Distance Services Systems Company, Respondents, Index No. 95-5192, RJI No. 33-95-1977, presently pending before (i) the Supreme Court of the State of New York in and for the County of Onondaga (Honorable John V. Centra, J.S.C., presiding) and (ii) a three-judge arbitration panel appointed by the aforementioned Court pursuant to New York Civil Practice Law and Rules ("CPLR"), § 7504, against debtors MCI Worldcom Network Services, Inc. [Debtor Case No. 02-42229AJG] and Teleconnect Long Distance Services Systems Company [Debtor Case No. 02-42291 AJG] ("the State Court Proceeding"), all as more fully set forth in the Motion; and the Court having jurisdiction to consider the Motion and the relief requested therein pursuant to 28 U.S.C. § 157 and 1334; and venue being proper before this Court pursuant to 28 U.S.C. § 1408 and 1409; and due and proper notice of the Motion having been provided, and it appearing that no other or further notice need be provided; and the Court having reviewed the Motion and having heard the statements in support of the relief requested therein at a hearing before the Court (the "Hearing") with Martin, Martin Woodard, LLC, Lee E. Woodard, Esq., appearing telephonically in support of the Motion; and Westerman, Ball, Ederer, Miller Sharfstein, LLP, appearing in support of the Motion; and Jenner and Block, LLC, Matthew Basil, Esq., appearing in opposition thereto; and the Court having determined that the legal and factual basis set forth in the Motion and at the Hearing establish just cause for at least partial relief being granted herein; and upon all of the proceedings had before the Court and after due deliberation and sufficient cause appearing therefore, it is
ORDERED, that the requirement under Rule 9013-1(b) of the Local Bankruptcy Rules for the Southern District of New York for the filing of a memorandum of law is waived, and it is further
ORDERED, that modification of the automatic stay is approved to the extent of allowing the debtors to file responsive papers to TSI's motion for the Arbitration Panels recalculation, and for the parties to submit whatever further pleadings or documents concerning damages that the Arbitration Panel shall allow, and it is further
ORDERED, that the further modification of the automatic stay is approved to the extent of allowing the Arbitration Panel to hear and issue a final decision as to damages, and it is further
ORDERED, that other proceedings in the New York State Supreme Court may only be had pending the issuance of a future decision and order by this Court.