Seth Freedman filed a motion for stay pending appeal of a bankruptcy court ruling. Phyllis Ershowsky responded in opposition. Ershowsky argued that Freedman failed to demonstrate a likelihood of success on appeal or irreparable harm without a stay. Specifically, Freedman did not sufficiently explain alleged errors in the court's application of fraud law or credibility determinations. Ershowsky also noted that monetary harm does not constitute irreparable harm. Therefore, Ershowsky asserted that Freedman's motion should be denied and a bond should be required if a stay was granted.
Seth Freedman filed a motion for stay pending appeal of a bankruptcy court ruling. Phyllis Ershowsky responded in opposition. Ershowsky argued that Freedman failed to demonstrate a likelihood of success on appeal or irreparable harm without a stay. Specifically, Freedman did not sufficiently explain alleged errors in the court's application of fraud law or credibility determinations. Ershowsky also noted that monetary harm does not constitute irreparable harm. Therefore, Ershowsky asserted that Freedman's motion should be denied and a bond should be required if a stay was granted.
Seth Freedman filed a motion for stay pending appeal of a bankruptcy court ruling. Phyllis Ershowsky responded in opposition. Ershowsky argued that Freedman failed to demonstrate a likelihood of success on appeal or irreparable harm without a stay. Specifically, Freedman did not sufficiently explain alleged errors in the court's application of fraud law or credibility determinations. Ershowsky also noted that monetary harm does not constitute irreparable harm. Therefore, Ershowsky asserted that Freedman's motion should be denied and a bond should be required if a stay was granted.
Seth Freedman filed a motion for stay pending appeal of a bankruptcy court ruling. Phyllis Ershowsky responded in opposition. Ershowsky argued that Freedman failed to demonstrate a likelihood of success on appeal or irreparable harm without a stay. Specifically, Freedman did not sufficiently explain alleged errors in the court's application of fraud law or credibility determinations. Ershowsky also noted that monetary harm does not constitute irreparable harm. Therefore, Ershowsky asserted that Freedman's motion should be denied and a bond should be required if a stay was granted.
The case documents a response from Ershowsky opposing a motion by Freedman for a stay pending appeal of a bankruptcy court decision finding a debt non-dischargeable due to fraud.
The case is about a response filed by Phyllis Ershowsky opposing a motion by Seth Freedman, a debtor, for a stay pending appeal of a bankruptcy court decision finding a debt owed to Ershowsky non-dischargeable due to fraud.
Ershowsky argues that Freedman failed to demonstrate a likelihood of success on appeal or irreparable harm from denial of the stay, and that monetary damages do not constitute irreparable harm. Ershowsky also opposes waiving the bond requirement.
1
SLATKIN & REYNOLDS, P.A.
One East Broward Boulevard, Suite 609, Fort Lauderdale, Florida 33301 Telephone 954.745.5880 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF FLORIDA FT. LAUDERDALE DIVISION www.flsb.uscourts.gov
In re:
SETH FREEDMAN and LAURA FREEDMAN,
Debtors.
CASE NO.: 08-28599-RBR CHAPTER 7
PHYLLIS ERSHOWSKY,
Plaintiff,
v.
SETH FREEDMAN,
Defendant.
ADV. PROC. NO.: 09-01382-RBR-A
RESPONSE IN OPPOSITION TO DEBTOR/DEFENDANTS MOTION FOR STAY PENDING APPEAL
Phyllis Ershowsky (Ershowsky), by and through undersigned counsel, respectfully responds in opposition to the Debtor/Defendant Seth Freedmans (Freedman of Debtor or Defendant) Motion for Stay Pending Appeal and as grounds in support thereof respectfully states: 1. Although Freedman has identified the proper standard against which a request for stay is measured, Freedman has failed to set forth sufficient argument or evidence that would entitle him to a stay pending appeal. 2. First, Freedman has failed, other than making general statements, to explain to the Court how this Court misapplied the well settled law on the issue of fraud and justifiable reliance as is set forth in the Supreme Courts decision in Field v. Mans, 516 U.S. 59, 116 S. Ct. 437, 133 Case 09-01382-RBR Doc 83 Filed 08/31/10 Page 1 of 4 Case No.: 08-28599-RBR Adv. Proc. No.: 09-01382-RBR-A 2 SLATKIN & REYNOLDS, P.A. One East Broward Boulevard, Suite 609, Fort Lauderdale, Florida 33301 Telephone 954.745.5880 L. Ed. 2d 351 (1995). Freedman likewise has cited to no case law or otherwise that supports his argument. 3. Furthermore, Freedman has failed to explain how the Courts credibility determinations i.e, that the testimony of Ershowsky was more believable than that of the Debtor is somehow in error. See Bankr. R. 8013 (Due regard shall be given to the opportunity of the bankruptcy court to judge the credibility of the witnesses) 1 . 4. Finally, Freedman has attempted to argue that some of the findings were not based on evidence raised at trial, that certain findings were irrelevant, or has attempted to argue matters that should have been raised in a post-trial memorandumsomething that Freedman, for whatever reason, chose not to submit. None of the arguments cite any specific testimony or exhibits, all of which are available since the trial transcript was ordered and Freedman was given a copy of Ershowskys exhibits. Thus, Freedman has failed to demonstrate a likelihood of success on the merits since he cannot point to anything specific in the record that supports his arguments. 5. Likewise, Freedman has failed to demonstrate any sort of irreparable harm. Although it is not entirely clear, Freedman seems to argue that, if Ershowsky obtains a judgment in the state court case while his appeal is pending and Ershowsky somehow collects money on that judgment, Freedman would be irreparably harmed if this Courts decision was subsequently reversed. However, the Supreme Court has made it unmistakably clear that monetary injuries do not constitute irreparable harm:
1 Ershowsky also takes issue with the Debtors representation that he never received a copy of Ershowskys proposed findings and conclusion. Undersigned counsel filed a certificate of service indicating that the proposed findings and conclusions were sent to the Court via email and were sent via U.S. mail to Freedman. See D.E. #50. Thus, this representation is blatantly inaccurate. Case 09-01382-RBR Doc 83 Filed 08/31/10 Page 2 of 4 Case No.: 08-28599-RBR Adv. Proc. No.: 09-01382-RBR-A 3 SLATKIN & REYNOLDS, P.A. One East Broward Boulevard, Suite 609, Fort Lauderdale, Florida 33301 Telephone 954.745.5880 The key word in this consideration is irreparable. Mere injury, however substantial, in terms of money, time and energy necessarily expended in the absence of a stay are not enough. The possibility that adequate compensatory or other corrective relief will be available at a later date, in the ordinary course of litigation, weighs heavily against a claim of irreparable harm.
Sampson v. Murray, 415 U.S. 61, 90, 94 S. Ct. 937, 39 L. Ed. 2d 166 (1974) (emphasis in original). 6. The Debtor has failed to demonstrate what harm he would suffer, other than perhaps having to pay money that he could demand be returned. This is the exact type of harm the Supreme Court in Sampson stated was not enough to obtain a stay pending appeal. Accordingly, the Debtor cannot demonstrate irreparable harm. 7. Finally, the Debtor seeks a stay without the posting of a bond. The only statement that Freedman makes that appears to be in support of his request for a stay without a bond is that he has just gone through Chapter 7, could not afford counsel to represent him at trial and cannot afford to pay a bond. Freedman then somehow equates the inability to pay a bond with irreparable harm. 8. As noted above and as the Supreme Court stated in Sampson, monetary damages do not reach the level of irreparable harm. Therefore, the argument is without merit. The requirement of a bond [P]rotects the winning party from the possibility of loss resulting from the delay in execution. Holland v. Law, 35 F. Supp. 2d 505, 506 (S.D.W.Va. 1999) (citation omitted), and is not to protect the assets of the defendant. Furthermore, [T]he power of the court to waive the supersedeas bond requirement should only be exercised in extraordinary circumstances and only where alternative means of securing the judgment creditors interest are available. Id. (citations omitted). Case 09-01382-RBR Doc 83 Filed 08/31/10 Page 3 of 4 Case No.: 08-28599-RBR Adv. Proc. No.: 09-01382-RBR-A 4 SLATKIN & REYNOLDS, P.A. One East Broward Boulevard, Suite 609, Fort Lauderdale, Florida 33301 Telephone 954.745.5880 9. Because Freedman has failed to demonstrate extraordinary circumstances and has otherwise failed to demonstrate what other means for securing Ershowskys judgment are available, Freedmans motion is due to be denied. WHEREFORE, for the reasons stated herein, Ershowsky requests the Court deny Freedmans Motion for Stay Pending Appeal, as well as grant any further relief the Court deems proper under the circumstances. Dated this 31 st day of August, 2010. I hereby certify that I am admitted to the Bar of the United States District Court, and that I am in compliance with the additional qualifications to practice in this Court set forth in Local Rule 2090-1(A).
SLATKIN & REYNOLDS, P.A. Attorneys for Ershowsky One East Broward Boulevard, Suite 609 Fort Lauderdale, Florida 33301 Telephone 954.745.5880 Facsimile 954.745.5890 [email protected] By: /s/ Robert F. Reynolds___ ROBERT F. REYNOLDS Fla. Bar No. 174823 CERTIFICATE OF SERVICE
I hereby certify that a true copy of the foregoing has been furnished via email [email protected] and U.S. mail to Seth Freedman, 4651 Higel Ave., Sarasota, Florida 34242 on this 31 st day of August, 2010. /s/ Robert F. Reynolds__ ROBERT F. REYNOLDS
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