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MADISON REALTY PARTNERS v AG ISA Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,094, CourtCode: CC, CourtName: IN THE, COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: MADISON REALTY PARTNERS, State: DE Delaware, UniqueCaseRef: DE>CC>00018094, Partnership, General Partner, Isa, Madison, Investment, Angelo Gordon, Agreement, Partnership Agreement, Llc, Fiduciary Duty, Delaware, Complaint, Parties, Third Party Beneficiaries, Macg, Limited Liability Company, Motion, Allegations, Capital Contributions, Contract, Paragraph, Breach, Amended Counterclaim, Dismiss, Maip, Del, Support, Facts, Delaware Limited Liability, York Action, Partnership Liquidity Investors, Deny, Madison Avenue, York, Limited Liability, Partnerships, Third Party , ContentID: 120240289

Case Documents
1 2001-07-18 ANSWER TO AMENDED COUNTERCLAIM
[ see first page and extracted highlights below  ] ItemID: 115259
8 pages
PDF
2 2001-06-13 ANSWER AFFIRMATIVE DEFENSES AND COUNTERCLAIMS
[ see first page and extracted highlights below  ] ItemID: 115260
17 pages
PDF
3 2001-04-17 MEMORANDUM OPINION
[ see first page and extracted highlights below  ] ItemID: 114895
21 pages
PDF
4   DEFENDANTS REPLY BRIEF IN SUPPORT OF MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102362
15 pages
PDF
5 2000-12-28 PLAINTIFFS SURREPLY BRIEF IN OPPOSITION TO DEFENDANTS MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102361
19 pages
PDF
6 2000-12 PLAINTIFFS OPENING BRIEF IN SUPPORT OF MOTION FOR A PRELIMINARY INJUNCTION
[ see first page and extracted highlights below  ] ItemID: 102365
15 pages
PDF
7 2000-11-10 PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION FOR PRELIMINARY INJUNCTION
[ see first page and extracted highlights below  ] ItemID: 102364
13 pages
PDF
8 2000-11-10 PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS MOTION TO DISMISS
[ see first page and extracted highlights below  ] ItemID: 102363
25 pages
PDF
9 2000-06-07 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 101075
9 pages
PDF
Total Documents: 9 documents , 142 pages
Price: $ 59.95


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1 . ANSWER TO AMENDED COUNTERCLAIM

EXTRACTED KEY WORDS
PARAGRAPH
DENY
PARTNERSHIP
MADISON
PARTIES
LLC
ISA
AGREEMENTS
REFER
PLAINTIFFS
ADMIT
INVESTMENT
ALLEGE
LIMITED LIABILITY
MADISON AVENUE
INTER ALIA
ACCURATE RECITATION
LIMITED LIABILITY COMPANY
YORK ACTION
MRP
AVENUE CAPITAL GROUP
INTENT
RELIEF
REALLEGE
FULLY SET
COURT
GENERAL PARTNER
ISA PARTNERSHIP LIQUIDITY
MACG
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                            IN AND FOR NEW CASTLE COUNTY


MADISON REALTY PARTNERS 7, LLC, a Delaware
limited liability company, individually and derivatively as a
general partner of ISA Partnership Liquidity Investors,
MADISON AVENUE INVESTMENT PARTNERS, LLC, a
Delaware limited liability company, INVESTMENT
SERVICES OF AMERICA, LLC, a Delaware limited
liability company, and THE MADISON AVENUE
CAPITAL GROUP II, LLC, a Delaware limited liability
company,

                                  Plaintiffs,

         and

ISA PARTNERSHIP LIQUIDITY INVESTORS, a
Delaware general partnership,

                                  Nominal Plaintiff,

         V.

AG ISA, LLC, a Delaware limited liability company, and
ANGELO GORDON & CO., L.P., a Delaware limited
partnership,

                                  Defendants,

         V.

MADISON AVENUE CAPITAL GROUP III, a Delaware
limited liability partnership,

                                  Additional Defendant
                                  On Counterclaim.


                         ANSWER TO AMENDED COUNTERCLAIM

         Plaintiffs and Additional Defendant On Counterclaim, Madison Realty Partners 7, LLC,

Madison Avenue Investment Partners, LLC, Investment Services of America, LLC, The


WP3:659118.1                                                                  57718.1001
SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • MADISON REALTY PARTNERS 7, LLC, a Delaware limited liability company, individually and
  • ISA PARTNERSHIP LIQUIDITY INVESTORS, a Delaware general partnership,
  • MADISON AVENUE CAPITAL GROUP III, a Delaware limited liability partnership,
  • ANSWER TO AMENDED COUNTERCLAIM
  • AG ISA, LLC, allege as follows:
  • Admit that counterplaintiff, AG ISA, LLC, has asserted the same claims in an
  • parties to the New York action are substantially similar to the parties in this action;
  • Deny the remaining allegations contained in paragraph 3 of the Amended
  • inter alia, refer to the "letter of intent" for a complete and accurate recitation of its
  • agreements, and unsigned draft partnership agreements, as well as the conduct of the parties,
  • MRP 7 admits that it received a letter dated August 3 1,200O from AG ISA.
  • MRP 7 and MACG III admit that they received a letter dated June 15,
  • Plaintiffs repeat and reallege each and every allegation contained in paragraphs 1
  • through 3 5 as if fully set forth herein.
  • Deny that counter-plaintiff is entitled to any of the requested relief.

  • 2 . ANSWER AFFIRMATIVE DEFENSES AND COUNTERCLAIMS

    EXTRACTED KEY WORDS
    ISA
    MADISON
    DEFENDANTS
    ALLEGATIONS
    INVESTMENT
    GENERAL PARTNER
    ANGELO GORDON
    LIMITED LIABILITY COMPANY
    MGP
    LLC
    PARAGRAPH
    DELAWARE LIMITED LIABILITY
    COUNTERCLAIMS
    PARTIES
    EXPENSES
    DEFENDANTS DENY
    AVENUE CAPITAL GROUP
    UNIT PURCHASES
    COMPLAINT
    PARTNERSHIP AGREEMENT
    PLAINTIFFS
    MACG
    OPERATING EXPENSES
    ISA PARTNERSHIP LIQUIDITY
    PARTNERSHIP LIQUIDITY INVESTORS
    ATTORNEYS
    LITIGATION
    YORK ACTION
    PROJECTIONS
    
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN AND FOR NEW CASTLE COUNTY
    
    
    MADISON REALTY PARTNERS 7, LLC, a Delaware
    limited liability company, individually and derivatively as a
    general partner of ISA Partnership Liquidity Investors,
    MADISON AVENUE INVESTMENT PARTNERS, LLC, a
    Delaware limited liability company, INVESTMENT
    SERVICES OF' AMERICA, LLC, a Delaware limited                                                   ,
    liability company, and THE MADISON AVENUE
    CAPITAL GROUP II, LLC, a Delaware limited liability
    company,
    
                                          Plaintiffs,
                                                                                         _
    
            and                                                              C.A. No.  18094-NCC
                                                                                              ,I
                                                                                       : . .
    ISA PARTNERSHIP LIQUIDITY INVESTORS, a
    Delaware general partnership,
    
                                          Nominal Plaintiff,
    
           V.
    
    AG ISA, LLC, a Delaware limited liability company, and
    ANGELO GORDON & CO., L.P., a Delaware limited
    partnership,
    
                                          Defendants,
    
    
            V.
    
    MADISON AVENUE CAPITAL GROUP III, a Delaware
    limited liability partnership,
    
                                          Additional Defendant
                                          On Counterclaims.
    
                    ANSWER  AFFIRMATIVE DEFENSES AND COUNTERCLAIMS
    
            Defendants AG ISA, LLC and Angelo Gordon & Co., L.P. (collectively "Defendants"),
    
    by and through their undersigned attorneys, hereby answer and respond to the allegations of the
    
    
    SNIPPETS:
  • MADISON REALTY PARTNERS 7, LLC, a Delaware limited liability company, individually and
  • ISA PARTNERSHIP LIQUIDITY INVESTORS, a Delaware general partnership,
  • MADISON AVENUE CAPITAL GROUP III, a Delaware limited liability partnership,
  • ANSWER AFFIRMATIVE DEFENSES AND COUNTERCLAIMS
  • Defendants AG ISA, LLC and Angelo Gordon & Co., L.P.,
  • Complaint filed in this matter on June 7,200O.
  • The names used herein to identify the parties are
  • Defendants deny the allegations contained in paragraph 1 except to state that the
  • Defendants admit that the Madison General Partner and the AG General Partner
  • entered into a partnership relationship but state that a written partnership agreement was
  • Plaintiffs except Plaintiff Madison.
  • Plaintiffs' claims are barred by their failure to obtain approval for this litigation from the
  • Avenue Capital Group II, LLC ("MACG II"), and others, are defendants.
  • payment of investment expenses and operating expenses, as called from time to time by the
  • The MGP was to purchase the LP Units and generally manage the Partnership.
  • apparent that purchases of LP Units were falling short of projections and expenses were
  • audited results for 1999, it was clear that unit purchases were running far below, and
  • Partnership for investment expenses and operating expenses that were incurred not for the
  • litigation as well as the New York Action, against AG ISA and Angelo Gordon.
  • Plaintiffs on all causes of action asserted in the Complaint, together with costs, attorneys'

  • 3 . MEMORANDUM OPINION

    EXTRACTED KEY WORDS
    DEFENDANTS
    PLAINTIFFS
    PARTNERSHIP AGREEMENT
    ISA
    ANGELO GORDON
    MADISON
    PARTNER
    COURT
    BREACH
    CONTRACT
    GENERAL PARTNER
    AGGP
    INVESTMENT
    COMPLAINT
    LLC
    CAPITAL CONTRIBUTIONS
    FIDUCIARY DUTY
    THIRD PARTY BENEFICIARIES
    DELAWARE LIMITED LIABILITY
    LIMITED LIABILITY COMPANY
    MACG
    MADISON AVENUE
    UMBRELLA AGREEMENT
    DEFENDANTS ARGUE
    THIRD PARTY
    AFFILIATES
    MAIP
    PARTNERSHIP LIQUIDITY INVESTORS
    WILMINGTON
    
                  IN THE, COURT OF CHANCERY OF THE STATE OF  DELAWARE
    
                              IN AND FOR. NEW CASTLE COUNTY
    
    MADISON REALTY PARTNERS 7, LLC, a Delaware
    Limited Liability Company, individually and derivatively
    as a General Partner of ISA Partnership Liquidity Investors,
    MADISON AVENUE INVESTMENT PARTNERS LLC,
    a Delaware Limited Liability Company, INVESTMENT
    SERVICES OF AMERICA, LLC, a Delaware Limited
    Liability Company, and THE MADISON AVENUE
    CAPITAL GROUP II, LLC, a Delaware Limited Liability
    Company,
                                Plaintiffs,
    
           and                                                          C.A. No. 18094
    
    ISA PARTNERSHIP LIQUIDITY  INVESTORS, a
    Delaware General Partnership,
                               Nominal Plaintiff,                                         -
           V.
                                                                                     :- .
    AG ISA, LLC, a Delaware Limited Liability Company, and :                         I- 1
    ANGELO GORDON & CO., L.P., a Delaware Limited
    Partnership,
                               Defendants.
    
                                     MEMORANDUM OPINION
    
                          Date Submitted:            January 12,200l
                          Date Decided: __ April 17.2001
    
    David C. McBride, Richard H:. Morse and Melanie K. Sharp, Esquires, of YOUNG,
    CONAWAY,  STARGATT & TAYLOR, Wilmington, Delaware; Attorneys for Plaintiffs
    
    James F. Burnett, Esquire of POTTER, ANDERSON & CORROON LLP, Wilmington,
    Delaware; and Peter N. Wang and Aimee E. Nassau, Esquires, of FRIEDMAN, WANG
    BLEIBERG, P.C., New York,, New York, Attorneys for Defendants
    
    
    
    JACOBS, VICE CIHANCELLOR
    
    
    
          A general partnership had two general partners, one res.ponsible for
    
    managing the partnership, and -the other for providing the capital funding. In
    
    
    SNIPPETS:
  • COURT OF CHANCERY OF THE STATE OF DELAWARE
  • MADISON REALTY PARTNERS 7, LLC, a Delaware Limited Liability Company, individually and
  • MADISON AVENUE INVESTMENT PARTNERS LLC,
  • Liability Company, and THE MADISON AVENUE
  • ISA PARTNERSHIP LIQUIDITY INVESTORS, a Delaware General Partnership,
  • Morse and Melanie K. Sharp, Esquires, of YOUNG, CONAWAY, STARGATT & TAYLOR, Wilmington,
  • James F. Burnett, Esquire of POTTER, ANDERSON & CORROON LLP, Wilmington, Delaware; and Peter
  • the funding partner refused to provide any further capital.
  • claims for breaches of contract and fiduciary duty.
  • partner and its co-defendant moved to dismiss the complaint for failure to
  • Partnership's two general partners entered into a partnership agreement (the
  • AGGP, which is a subsidiary of Angelo Gordon & Co., L.P.
  • AGGP was required to make su.ch capital contributions as
  • Capitil Group II, LLC ("MACG II").
  • Those affiliates are Madison's coplaintiffs in this lawsuit.
  • the defendants demanded that the MAIP
  • breach of fiduciary duty to Madison and to
  • Agreement nor the Umbrella Agreement confers any enforceable rights upon
  • Under Delaware law, defendants argue, fiduciary
  • rights as third party beneficiaries.

  • 4 . DEFENDANTS REPLY BRIEF IN SUPPORT OF MOTION TO DISMISS

    EXTRACTED KEY WORDS
    PARTNERSHIP
    GENERAL PARTNER
    ISA
    MADISON
    DEFENDANTS
    SUPPORT
    PARTNERSHIP AGREEMENT
    CONTRACT
    BREACH
    DELAWARE
    MOTION
    THIRD PARTY
    THIRD PARTY BENEFICIARIES
    FIDUCIARY DUTY
    YORK
    UMBRELLA AGREEMENT
    LIMITED LIABILITY COMPANY
    INVESTMENT
    MACG
    MAIP
    LLC
    ALLEGE FACTS SUFFICIENT
    ANGELO GORDON
    OBLIGATIONS
    TORTIOUS INTERFERENCE
    RECOVER DAMAGES
    MADISON AVENUE INVESTMENT
    ATTORNEYS
    PRELIMINARY STATEMENT
    
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                            '      
                                IN AND FOR NEW CASTLE COUNTY
    
    MADISON REALTY PARTNERS 7, LLC, a Delaware                   )
    limited liability company, individually and derivatively as a)
    general partner of ISA Partnership Liquidity Investors,      )
    MADISON AVENUE INVESTMENT PARTNERS, LLC,  )
    a Delaware limited liability company, INVESTMENT             )
    SERVICES OF AMERICA, LLC, a Delaware limited
    liability company, and THE MADISON AVENUE                    i
    CAPITAL GROUP II, LLC, a Delaware limited liability          )
    company,
                                                                 i
                           Plaintiffs,
           and1                                                  ;        Civil Action No. 18094-NCC
    
    ISA PARTNERSHIP LIQUIDITY INVESTORS, a                       i
    Delaware general partnership,
                                                                 ;
                           Nominal Plaintiff,                    >
    
                     V.                                          t
                                                                 >
    AG ISA, LX, a Delaware limited liability company, and )
    ANGELO GORDON & CO., L.P., a Delaware limited                )
    partnership,
                                                                 1
                           Defendants.                           >
    
           @:FENDANTS'  RElpLy  BRIEF IN SUPPORT OF MOTION TO DISMIfs
    
                                                         James F. Burnett
                                                         POTTER ANDERSON  & CORROON  LLP
    OF COUNSEL                                           Hercules Plaza, Sixth Floor
    Peter N. Wang.                                        13 13 North Market Street
    Aimee E. Nassau                                      P.O. Box 95 1
    Friedman, Wang & Bleiberg, P.C.                       Wilmington, Delaware 19899-09.5  1
    90 Park Avenue                                        (302) 984-6000
    New York, New York 100 16
    (2 12) 682-7474                                      Attorneys for Defendants
    
    
    Dated: November  22,ZOOO
    
    
    
                                                                                                     
    
    
    
    SNIPPETS:
  • limited liability company, individually and derivatively as a) general partner of ISA
  • MADISON AVENUE INVESTMENT PARTNERS, LLC,)
  • SERVICES OF AMERICA, LLC, a Delaware limited
  • York, New York 100 16 682-7474
  • Attorneys for Defendants
  • PRELIMINARY STATEMENT .I...............
  • PLAINTIFFS, AS A COLLECTIVE GROUP, CANNOT RECOVER DAMAG.ES
  • FOR BREACH OF CONTRACT,
  • PLAINTIFFS' BREACH OF FIDUCIARY DUTY CLAIMS FAIL BECAUSE
  • PLAINTIFFS FAILED TO ALLEGE FACTS SUFFICIENT TO SUPPORT
  • THEIR CLAIMS OF TORTIOUS INTERFERENCE WITH CONTRACT.
  • Defendants Angelo Gordon & Co., L.P. and AG ISA, LLC
  • Answering Brief in Opposition to Defendants' Motion to Dismiss,
  • required by the Partnership Agreement (&.
  • defendant were not a party to the Partnership Agreement, Umbrella Agreement or Services
  • The term "AG Parent" is misleading and mischaracterizes the relationship between Angelo
  • and Plaintiffs failed to allege facts sufficient to support their
  • PLAINTIFFS, AS A COLLECTIVE GROUP, CANNOT RECOVER DAMAGES FOR BREACH OF CONTRACT,
  • General Partner, ISA and MACG II are third party beneficiaries to the Umbrella Agreement, thus
  • Plaintiffs argue that the status of Madison General Partner as a party to the Partnership

  • 5 . PLAINTIFFS SURREPLY BRIEF IN OPPOSITION TO DEFENDANTS MOTION TO DISMISS

    EXTRACTED KEY WORDS
    PARTNERSHIP
    PLAINTIFFS
    ISA
    DEFENDANTS
    PARTNERSHIP AGREEMENT
    ANGELO GORDON
    COURT
    DISMISS
    THIRD PARTY BENEFICIARIES
    MOTION
    MACG
    DEL
    DELAWARE
    LLC
    COMPLAINT
    MAIP
    INVESTMENT PARTNERS
    CAPITAL CONTRIBUTIONS
    PARTNERSHIP LIQUIDITY INVESTORS
    OBLIGATION
    INTENDED BENEFICIARIES
    TORTIOUS INTERFERENCE
    LIMITED LIABILITY
    ISA PARTNERSHIP LIQUIDITY
    MADISON AVENUE
    UMBRELLA AGREEMENT
    SERVICES AGREEMENTS
    REASONABLE INFERENCE
    AUTHORITIES
    
                                                                              ORIGINAL
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                IN AND FOR NEW CASTLE COUNTY
    
    MADlSON  REALTY PARTNERS 7, LLC , a Delaware                )
    Limited Liability Company, individually and derivatively )
    as a General Partner of ISA Partnership Liquidity Investors,)
    MADISON AVENUE INVESTMENT PARTNERS, LLC,  )
    a Delaware Limited Liability Company, INVESTMENT            )
    SERVICES OF AMERICA, LLC a Delaware Limited                 )
    Liability Company, and THE MADISON AVENUE                   >
    CAPITAL GROUP II, LLC, a Delaware Limited Liability )
    Company,
                                                                i
                                  Plaintiffs,
                    and                                         !      C. A. No. 18094 (NC)
                                                                >
    ISA PARTNERSHIP LIQUIDITY INVESTORS, a
    Delaware General Partnership,
    
                                  Nominal Plaintiff,
    
    
                    V.
                                                                ;
    AG ISA, LLC, a Delaware Limited Liability Company,          )
    and ANGELO GORDON & CO., L.P., a Delaware
    Limited Partnership,
    
                                  Defendants.                   ;
    
                           PLAINTIFFS' SURREPLY BRIEF IN OPPOSITION
                              TO DEFENDANTS' MOTION TO DISMISS
    
    
                                  YOUNG CONAWAY STARGATT & TAYLOR, LLP
                                  Richard H. Morse
                                  David C. McBride
                                   1 lth Floor, Rodney Square North
                                  P.O. Box 391
                                  Wilmington, Delaware 19899-0391
                                  Telephone: (302) 571-665 1
                                  Facsimile: (302) 571-1253
                                  Attorneys for Plaintiffs
    
    Dated: December  28,200O
    
    
    WP3 581172.1                                                                          57718.1001
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Limited Liability Company, individually and derivatively) as a General Partner of ISA
  • MADISON AVENUE INVESTMENT PARTNERS, LLC,)
  • TO DEFENDANTS' MOTION TO DISMISS
  • TABLE OF AUTHORITIES.
  • The Facts Alleged In The Complaint Entitle MAIP, ISA,
  • MACG II And ISAPLI To Bring Third Party Beneficiary
  • Assert Claims Independent From Plaintiffs' Breach
  • Plaintiffs Have Adequately Plead A Tortious Interference
  • D&mond State Tel. Co. v. Universitv of Delaware,
  • At oral argument the Court asked for Plaintiffs' position on whether the Court
  • may consider the sttitement in the draft partnership agreement attached to the Affidavit of
  • As demonstrated at pages 8 -10 of our answering brief, Madison Avenue
  • Investment Partners, Investmen: Services of America, LLC and Madison
  • Partnership Agreement because they are intended beneficiaries o-fthat Agreement.
  • ISA's and MACG II's status as third party beneficiaries flows from their status as
  • obligation to that nerson, and the promisee makes a valid contract
  • agreement between MAIP and Angelo Gordon & Co.,
  • promise not to discontinue capital contributions without 120 days notice would benefit MAIP,
  • it is a reasonable inference that in entering into the Partnership
  • reflect the Umbrella Agreement made between MAIP and Angelo Gordon in or about September
  • Services Agreements and that AG General Partner knew of those agreements.

  • 6 . PLAINTIFFS OPENING BRIEF IN SUPPORT OF MOTION FOR A PRELIMINARY INJUNCTION

    EXTRACTED KEY WORDS
    COURT
    DEFENDANTS
    YORK ACTION
    DEL
    INJUNCTION
    PROCEEDING
    PARTNERS
    PARTIES
    MADISON
    PLAINTIFFS
    ANGELO GORDON
    ENJOIN
    SUPR
    JURISDICTION
    MOTION
    COMPLAINT
    CHANCERY
    PETROLEUM
    LITIGATION
    RULING
    JUDGEMENT
    LLC
    WILLIAMS
    PARTY
    SHELL OIL
    DISPUTE
    PROSECUTING
    COLLISION COURSE
    INCONSISTENT
    
                    IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                IN AND FOR. NEW CASTLE COUNTY
    
    
    MADISON REALTY PARTNERS 7, LLC, a Delaware                          1
    limited liability company, individually and derivatively as a
    general partner of ISA Partnership Liquidity Investors,             i                             
    MADISON AVENUE INVESTMENT PARTNERS, LLC, a )
    Delaware limited liability company, INVESTMENT
    SERVICES OF AMERICA, LLC, a Delaware limited                                                       
                                                                        ;                             
    liability company, and THE MADISON AVENUE                                                         
    CAPITAL GROUP II, LLC, a Delaware limited liability                 ;
    company,
                                                                        i
                                           Plaintiffs,
                                                                        t
            and                                                         )      CA. No.  18004  (NC)
    
    ISA PARTNERSHIP LIQUIDITY INVESTORS, a                              ;
    Delaware general partnership.
                                                                        ;
                                           Nominal Plaintiff,
                                                                        ;
            V.
                                                                        ;
    AG ISA, LLC, a Delaware limited liability company, and              >
    ANGELO GORDON & CO., L.P., a Delaware limited
    partnership,
    
                                            Defendants.                 il
    
                          PLAINTIFFS' OPENING BRIEF IN SUPPORT
                     OF THEIR MOTION-FOR A PRELIMINARk'lNJUNCTlON
    
    
    
                                                   Stephen E. Herrmann
                                                   Richards, Layton & Finger
                                                   One Rodney Square
                                                   Wilmington, Delaware 1080  1
                                                   (302) 65 I-7730
                                                   Attorneys for Plaintiffs
    
    
    
                                                 TABLE OF CONTENTS
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • MADISON AVENUE INVESTMENT PARTNERS, LLC, a) Delaware limited liability company, INVESTMENT
  • ANGELO GORDON & CO., L.P., a Delaware limited partnership,
  • Does Not Enjoin Defendants From Proceeding In The
  • A>2 Pipeline Co. v. Shell Oil Co.,
  • General Foods Corp. v. Crvo-Maid, Inc., Del.
  • Supr., 263 A.2d 281 6,7
  • Mesa Partners v. Phillips Petroleum Co:,
  • Defendants filed in New York over two months after Plaintiffs sued Defendants in Delaware
  • The New York Action is duplicative of the Delaware Action.
  • injunction is accordingly needed to protect the jurisdiction of the Delaware Court.
  • Plaintiffs' Opening Brief in support of their Motion for a Preliminary Injunction.
  • As examination of the Complaint in the Delaware Action reveals, a dispute has
  • arisen among the parties concerning the interest ofMadison Avenue In'vestment Partners, LLC,
  • plaintiffs and defendants not named in the Delaware Action and failed to name a party in the
  • from removing litigation first-filed in Delaware to another state's court.
  • authority to enjoin the prosecution of lawsuits which are on an unavoidable "collision course"
  • the first-filed Delaware Action and the secondtiled New York Action will proceed
  • (RULING OF THE COURT), plaintiffs sought to enjoin an action in another
  • jurisdiction in favor of a prior-filed Delaware declaratory judgment action.
  • Under the Williams case, this Court is essentially required to
  • this Court should enjoin Defendants from further prosecuting the New York Action.

  • 7 . PLAINTIFFS REPLY BRIEF IN SUPPORT OF MOTION FOR PRELIMINARY INJUNCTION

    EXTRACTED KEY WORDS
    COMPLAINT
    ANGELO GORDON
    MADISON
    YORK
    DELAWARE
    INVESTMENT
    DEFENDANTS
    COURT
    CAPITAL CONTRIBUTIONS
    DEL
    PLAINTIFFS
    OPENING
    FUNDING
    GENERAL PARTNER
    INJUNCTION
    ISAPLI
    PARTIES
    LLC
    EXPENSES
    OFFICE SERVICES
    WRONGFUL
    DISPUTE
    ISA
    INCONSISTENT
    PARENT
    MANAGEMENT
    NEGOTIATIONS
    ALLEGES
    CONTRACT
    
                IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                                 IN AND FOR NEW CASTLE COUNTY
    
    MADISON REALTY PARTNERS 7, LLC                           1
    a Delaware limited liability company, individually )
    and derivatively as a general partner of ISA
    Partnership Liquidity Investors, MADISON                 1
    AVENUE INVESTMENT PARTNERS, LLC,                         )
    a Delaware limited liability company,                    1
    INVESTMENT SERVICES OF AMERICA, LLC, )
    a Delaware limited liability company, and THE            )
    MADISON  AVE;NUE  CAPITAL GROUP II, LLC, )
    a Delaware limited liability company.
                                                             1
                                       Plaintiffs,
                                                             1
                          and                                >>       Civil Action No. 18094 (NC)
    ISA PARTNERSHIP  LIQUl.DITY  INVESTORS, )
    a Delaware general partnership,
                                                             i
                                   Nominal Plaintiff, )
    
                          V.                                 i
    
    AG ISA, LLC, a Delaware limited liability                i
    company, and ANGELO GORDON & CO., L.P.,                  )
    a Delaware limited partnership,
                                                             ;
                                   Defendants.               )
    
                                PLAINTIFFS REPLY BRIEF IN SUPPORT
                         OF MOTION FOR PRELIMINARY INJUNCTION
                         ~--
    
                                                      YOUNG CONAWAY  STARGATT & TAYLOR, LLP
                                                      David C. McBride
                                                      Richard H. Morse
                                                      1100 North Market Street
                                                      Eleventh Floor
                                                      P.O. Box 391
                                                      Wilmington, DE 19899-,039l
                                                      Attorneys for Plaintiffs
    
    Dated: November  10,200O
    
    
    
    WP3  564677.  1
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • individually) and derivatively as a general partner of ISA
  • INVESTMENT SERVICES OF AMERICA, LLC,)
  • MADISON AVE;NUE CAPITAL GROUP II, LLC,)
  • PLAINTIFFS REPLY BRIEF IN SUPPORT
  • AN INJUNCTION IS NECESSARY TO PREVENT
  • Del.
  • Throughout their Opening Brief defendants seek to portray the claims in Little
  • Court of New York, County of New York as distinct from the claims in
  • In fact, as review of the two Complaints shows, there is one global dispute between
  • and defendant Angelo Gordon & Co., L.P. and its affiliates (collectively, "Angelo
  • appropriate allocation of expenses among five interrelated investment partnerships all
  • "Investment Partnerships").
  • Those created by AC Parent fund the
  • See, e.g., Delaware Complaint TT 3-7;
  • MACG 11 provided back office services for the other four Investment Partnerships,
  • funding, AG Parent and AG General Partner prevented ISAPLI and plaintiff Madison Reality
  • Madison further alleges that Angelo Gordon's misconduct has disrupted the service providers'
  • both actions revolve around the negotiations between Madison and AG Parent
  • negotiations fraudulently induced it to make additional capital contributions to the
  • identity berween the two actions by compartmentalizing the global dispute among the parties.
  • subsidiary to cease making capital contributions in order to exert wrongful pressure on
  • manager it would have received the management fees about which Angelo Gordon complains.
  • anti-suit injunction is to prevent inconsistent rulings and waste, what is required is that
  • breach of such contract without justification which causes

  • 8 . PLAINTIFFS ANSWERING BRIEF IN OPPOSITION TO DEFENDANTS MOTION TO DISMISS

    EXTRACTED KEY WORDS
    GENERAL PARTNER
    DEFENDANTS
    AGREEMENT
    MADISON
    ISA
    FIDUCIARY DUTY
    PLAINTIFFS
    INVESTMENT
    COURT
    FACTS
    PARTIES
    THIRD PARTY BENEFICIARIES
    LLC
    MOTION
    DISMISS
    COMPLAINT
    MACG
    CAPITAL CONTRIBUTIONS
    LIMITED LIABILITY
    WP3
    PARTNERSHIP LIQUIDITY INVESTORS
    MADISON AVENUE
    MAIP
    DERIVATIVE SUIT
    AFFILIATES
    OBLIGATIONS
    LIMITED LIABILITY COMPANY
    ISA PARTNERSHIP LIQUIDITY
    ASSERT CLAIMS INDEPENDENT
    
             IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                               IN AND FOR NEW CASTLE COUNTY                                         k,
                                                                                                  / LP
    MADISON REALITY PAKTNERS 7, LLC , a Delaware )
    Limited Liability Company, individually and derivatively )
    as a General Partner of ISA Partnership Liquidity Investors,)
    MADISON AVENUE INVESTMENT PARTNERS, LLC,  )
    a Delaware Limited Liability Company, INVESTMENT              )
    SERVICES OF AMERICA, !LLC a Delaware Limited
    Liability Company, and THE MADISON AVENUE                     i
    CAPITAL GROIJP II, LLC, a Delaware Limited Liability )
    Company,
                                                                  i
                                  Plaintiffs,
                    and                                                 C. A. No. 18094 (NC!).
    
    ISA PARTNERSHIP  LIQIJIDITY  INVESTORS, a
    Delaware General Partnership,
    
                                  Nominal Plaintiff,              i
    
                                                                  ;
                    V.
    
                                                                  ;
    AG ISA, LLC, a Delaware Limited Liability Company, and)
    ANGELO GORDON & CO., L.P., a Delaware Limited                 )
    Partnership,                                                  >
    
                                  Defendants.
    
                          PLAINTIFFS' ANSWERING BRIEF IN OPPOSITION
                             TO DEFENDANTS' MOTION TO DISMISS
    
    
                                          YOUNG CONAWAY STARGATT & TAYLOR, LLP
                                          David C. McBride
                                          Richard H. Morse
                                          Melanie K. Sharp
                                           1 lth Floor, Rodney Square North
                                           P.O. Box 391
                                           Wilmington, DE 19899-0391
                                           Attorneys for Plaintiffs
    
    DATED: Novernber  10,200O
    
    
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • MADISON REALITY PAKTNERS 7, LLC, a Delaware) Limited Liability Company, individually and
  • MADISON AVENUE INVESTMENT PARTNERS, LLC,)
  • ISA PARTNERSHIP LIQIJIDITY INVESTORS, a Delaware General Partnership,
  • TO DEFENDANTS' MOTION TO DISMISS
  • WP3 563817 2
  • STATEMENT 0 F FACTS
  • PARTIES TO THE AGREEMENTS ARE ENTITLED
  • ASSERT CLAIMS INDEPENDENT FROM PLAINTIFFS'
  • PARTNER'S FIDUCIARY DUTY BREACHES,
  • Madison Avenue Investment Partners, LLC, Investment Services of America, LLC
  • (Complaint 17 2-3, 6)
  • Pursuant to the partnership agreement between Madison General Partner and AG General
  • into agreements with ISA and MACG II to provide to the
  • In addition to having their affiliates enter into the Partnership Agreement,
  • Partner to fulfill its obligations under the Partnership Agreement.
  • of a possible investment, ur&ated to the Partnership, in an affiliate of MAIP.
  • General Partner that it would immediately cease making capital contributions,
  • A derivative suit is often unnecessary in the partnership context since,
  • TO SUE AS THIRD PARTY BENEFICIARIES.

  • 9 . COMPLAINT

    EXTRACTED KEY WORDS
    GENERAL PARTNER
    AGREEMENT
    INVESTMENT
    ISA
    DEFENDANTS
    MADISON GENERA1
    PLAINTIFFS
    DELAWARE
    LIMITED LIABILITY COMPANY
    MACG
    OBLIGATIONS
    CAPITAL CONTRIBUTIONS
    LIABILITY COMPANY
    BREACH
    LLC
    ANGELO GORDON
    AFFILIATES
    MAIP
    PURCHASE
    NOTICE PURSUANT
    WRONGFUL
    DAMAGES
    DUTY
    FULFILL
    IRREPARABLE DISRUPTION
    MADISON AVENUE
    CONTRACT
    ISA UMBRELLA AGREEMENT
    ACQUISITION
    
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE?
    
                                 IN AND FOR NEW CASTLE COUNTY
    
    
     MADISON REALTY PARTNERS 7, LLC, a Delaware
     limited liability company, individually and derivatively as a    ;
     general partner of 1SA Partnership Liquidity Investors,          >
     MADISON  AVENUF  INVESTMENT PARTNERS, LLC, a )
     Delaware: limited liability company, INVESTMENT
     SERVICIES  OF AMERICA, LLC, a Delaware limited                   ;
     liability company, and THE MADISON AVENUE
     CAPITAL GROUP II, LLC, a Delaware limited liability              i
     company,                                                         >
    
                                            Plaintiffs,
    
               and                                                    ;    C.A. No. 1 @c,`b3t
    
     ISA PARTNERSHIP LIQUIDITY INVESTORS, a                           1
     Delaware general partnership.
                                                                      ;
                                            Nominal Plaintiff,
                                                                      t
              V.
    
                                                                      1
     AG ISA, LLC, a Delaware limited liability company, and
     ANGELO GORDON & CO., L.P., a Delaware limited                    i
     partnership,                                                     >
    
                                            Defendants.
    
                                               COMPLAINT
    
             NOW COME Plaintiffs, Madison Realty Partners 7, LLC ("Madison Genera1 Partner"), a
    
    Delaware limited liability company, Madison Avenue Investment Partners, LLC  ("MAIP"),  a
    
    Delaware limited liability company, Investment Services of America, LLC ("ISA"), a Delaware
    
    limited  lia,bility  company, and The Madison Avenue Capital Group II, LLC  ("MACG II"), a
    
    Delaware limited liability company, state for their Complaint as follows:
    
    
    
    
    KLFl-2166033.1
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE?
  • MADISON REALTY PARTNERS 7, LLC, a Delaware limited liability company, individually and
  • MADISON AVENUF INVESTMENT PARTNERS, LLC, a) Delaware:
  • liability company, and THE MADISON AVENUE
  • NOW COME Plaintiffs, Madison Realty Partners 7, LLC ("Madison Genera1 Partner"), a
  • This is an action by Plaintiffs for breach of contract,
  • contract, breach of fiduciary duty, and aiding and abetting breach of fiduciary duty.
  • Defendants have improperly placed their own interests above
  • their fiduciary and contractual obligations to Plaintiffs.
  • Nominal Plaintiff ISA Partnership Liquidity Investors is a general
  • Plaintiff Madison General Partner is the managing general partner of the Partnership.
  • As set forth in greater detail below, it is a party to the ISA Umbrella Agreement (as
  • Plaintiffs ISA and MACG II are Delaware limited liability companies that are
  • Defendant Angelo Gordon & Co., L.P. which is a New York based hedge fund
  • the AG General Partner is required to make capital contributions ("Capital
  • Angelo Gordon would cause the AG General Partner to fulfill its obligations under the
  • determining when and under what circumstances the Partnership will purchase,
  • infrastructure essential for the operation of the Partnership and for the acquisition of
  • In March, 2000, representatives of certain affiliates of MAIP and Defendants met to
  • In order to try to exert wrongful pressure on affiliates of MAIP to accede to
  • suffered serious and irreparable disruption of its business, has been unable to purchase at
  • providing the 120-Day Notice pursuant to the Partnership Agreement is a violation ofthe
  • ISA and MACG II are entitled to damages against Defendants for this
  •    |