Crown Ohio Investments, LLC

1:09-bk-46767NyebNov 13, 2009

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UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NEW YORK
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In re: 	Case No.: 1-09-46767-dem
CROWN OHIO INVESTMENTS, LLC, 	Chapter 11
Debtor.
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DECISION AND ORDER ON APPLICATION FOR EXPEDITED DISCOVERY
Appearances:
Michelle McMahon, Esq.
Bryan Cave LLP
Attorneys for Creditor Wells Fargo Bank, N.A. as Trustee
1290 Avenue of the Americas
New York, New York 10104
-and-
Keith Miles Aurzada, Esq.
Attorneys for Creditor Wells Fargo Bank, N.A. as Trustee
JP Morgan Chase Tower, Suite 3300
2200 Ross Avenue
Dallas, Texas 75201
DENNIS E. MILTON
United States Bankruptcy Judge
I. INTRODUCTION
The matter is before the Court on the ex parte application (the “Application”) of
creditor Wells Fargo Bank, N.A., as Trustee for the Registered Holders of LaSalle Commercial
Mortgage Securities Inc, Commercial Pass-Through Certificates, Series 2005-MF1 (“Wells
Fargo”) for an Order Shortening the Notice Period with respect to its Request for Document
Production from Crown Ohio Investments, LLC (the “debtor”). 	For the reasons set forth below,
Case 1-09-46767-jbr Doc 30 Filed 11/13/09 Entered 11/13/09 16:37:48
the Application is granted in part and denied in part.
II. JURISDICTION
This Court has jurisdiction over this core proceeding under 28 U.S.C. §§ 1334(b)
and 157(b)(2) and the Eastern District of New York standing order of reference dated August 28,
1986. This Decision and Order constitutes the Court’s findings of fact and conclusions of law to
the extent required by Fed. R. Bankr. P. 7052.
III. FACTUAL BACKGROUND
On August 7, 2009, the debtor filed a voluntary petition for relief under Chapter
11 of the Bankruptcy Code. On September 21, 2009, one day before the scheduled Status
Conference in this case, Wells Fargo, N.A. filed a motion for relief from the automatic stay (the
“Motion”). On October 6, 2009, counsel for the debtor filed an Objection to the Motion. On
October 8, 2009, the Court heard argument on the Motion and scheduled a hearing on the Motion
for November 16, 2009. On November 2, 2009, the Court adjourned the hearing on the Motion
and the case Status Conference to November 24, 2009.
On November 4, 2009, counsel for Wells Fargo contacted Chambers and advised
that Wells Fargo intended to seek an Order directing the production of documents and shortening
the time for notice of the application. On November 5, 2009, a representative of Chambers
informed counsel for Wells Fargo of the specific procedure which Chambers directed to be
followed with regard to such applications. Six days later, on November 11, 2009, a federal
holiday on which the bankruptcy court was officially closed, counsel for Wells Fargo filed the
Application. The Document Request sought the production of the following documents within
one week of the filing of the Request with the Court:
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Case 1-09-46767-jbr Doc 30 Filed 11/13/09 Entered 11/13/09 16:37:48
1. 	Copies of all operating statements, rent rolls, cash flow
projection, balance sheets, statements of income,
expenses and taxes or other documents or
communications revealing the operating position
of the Debtor's business beginning one year prior
to the Petition Date through the date of this Request.
2. 	Any and all documents or communications concerning
or relating to the appraisal of or value of the Debtor's
property located at 17500 Euclid Avenue, Cleveland,
Ohio 44112.
3. 	Any and all documents concerning any communication
to or from the Debtor referring or relating to the Debtor's
efforts to restructure of refinance outstanding debt,
develop a chapter 11 plan of reorganization or raise equity.
4. 	Copies of the Debtor's tax returns for the years 2006,
2007 and 2008.
5. 	All rent rolls since January 1, 2008.
6. 	All code compliance or administrative actions by city,
county, local or state governmental agencies concerning
the Property.
Request for Document Production at 4-5.
Although counsel for Wells Fargo states that cause existed for the production
requested, no basis other than the scheduling of the hearing on the Motion is set forth in their
papers. Many of the documents requested are irrelevant to the issues presented at the hearing or
cover a time frame which is too broad for document production at such an early stage of this
case. For example, document request number five seeks production of documents for a two year
period and document request number six seeks production of documents concerning compliance
with local administrative codes for this Cleveland Ohio property. Request Number three seeks
documents to which a privilege may attach.
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Case 1-09-46767-jbr Doc 30 Filed 11/13/09 Entered 11/13/09 16:37:48
Accordingly, the Court grants the application insofar as it directs the debtor to
respond to the following document request on or before November 20, 2009:
Any and all documents or communications concerning
or relating to the appraisal of or value of the Debtor's
property located at 17500 Euclid Avenue, Cleveland, Ohio 44112.
In all other respects, the Application is denied. Of course, nothing in this decision and order
addresses in any way the standards for admissibility into evidence of any document at the
hearing on November 24, 2009.
CONCLUSION
For the reasons set forth above, with regard to the ex parte application of creditor
Wells Fargo for an Order Shortening the Notice Period concerning its Request for Document
Production from the debtor, the Application is granted in part and denied in part.
Dated: Brooklyn, New York
November 13, 2009
s/ Dennis E. Milton
DENNIS E. MILTON
United States Bankruptcy Judge
To: 	Michelle McMahon, Esq.
Bryan Cave LLP
Attorneys for Creditor Wells Fargo Bank, N.A. as Trustee
1290 Avenue of the Americas
New York, New York 10104
-and-
Keith Miles Aurzada, Esq.
Attorneys for Creditor Wells Fargo Bank, N.A. as Trustee
JP Morgan Chase Tower, Suite 3300
2200 Ross Avenue
Dallas, Texas 75201
-4-
Case 1-09-46767-jbr Doc 30 Filed 11/13/09 Entered 11/13/09 16:37:48
J. Ted Donovan, Esq.
Goldberg Weprin Finkel Goldstein LLP
Attorneys for the Debtor
1501 Broadway, 22nd Floor
New York, New York 10004
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Case 1-09-46767-jbr Doc 30 Filed 11/13/09 Entered 11/13/09 16:37:48

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