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POLYMUSE v ODALY Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 16,597, CourtCode: CC, CourtName: DEFENDANT, THEREBY CONSENTING TO THE JURISDICTION OF THIS COURT AND INDICATING DEFENDANT S DESIRE TO, Plaintiff: POLYMUSE, State: DE Delaware, UniqueCaseRef: DE>CC>00016597, Judgement, Motion, Delaware, Chancery, Registered Agent, Teleamerica, Books, York, Complaint, Registered Mail, Tab, Tele-america, Production, Delivery, Teleamerica Entertainment, Del, Register, Renewed Motion, Certificate, Entry, Denies Receiving, Presumption, Morton, Response, Appearance, Pursuant, Exhibit, Matter, Jack Ashkenasy, Meyers Tersigni Feldman, Gray, Bifferato, Silverman, Derivative Action, Agreement, Facts, First Class, Class Mail, Michael, Mailings, Responsive Pleading , ContentID: 120240954

Case Documents
1 2001-06-19 PLAINTIFFS BRIEF IN SUPPORT OF MOTION FOR DEFAULT JUDGMENT
[ see first page and extracted highlights below  ] ItemID: 115556
14 pages
PDF
2 2000-08-14 LETTER
[ see first page and extracted highlights below  ] ItemID: 103087
3 pages
PDF
3 1999-12-02 ANSWER OF DEFENDANT L. ODALY
[ see first page and extracted highlights below  ] ItemID: 102124
4 pages
PDF
4 1999-05-17 PLAINTIFFS RESPONSE TO DEFENDANT ODALYS RULE 60(B) MOTION
[ see first page and extracted highlights below  ] ItemID: 103539
6 pages
PDF
5 1999-03-16 RENEWED MOTION
[ see first page and extracted highlights below  ] ItemID: 103540
6 pages
PDF
Total Documents: 5 documents , 33 pages
Price: $ 39.95


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1 . PLAINTIFFS BRIEF IN SUPPORT OF MOTION FOR DEFAULT JUDGMENT

EXTRACTED KEY WORDS
PLAINTIFF
JUDGEMENT
COUNSEL
DEFENDANTS
REGISTERED AGENT
TELEAMERICA
BOOKS
REGISTERED MAIL
MOTION
CHANCERY
TAB
YORK
DELAWARE
COMPLAINT
TELEAMERICA ENTERTAINMENT
DENIES RECEIVING
PRESUMPTION
DELIVERY
JACK ASHKENASY
MEYERS TERSIGNI FELDMAN
GRAY
BIFFERATO
SILVERMAN
DERIVATIVE ACTION
REGISTER
RAMPASTURE
CREDIBLE EVIDENCE
MULTIPLE TRANSMITTALS
LITIGATION
         IN  THE COURT OF CHANCERY OF THE STATE OF DELAWARE
                              IN AND FOR NEW CASTLE COUNTY

POLYMUSE, INC.,                                >

                Plaintiff,

         V.
                                               >
LAWRENCE P. O'DALY,                                        C.A. No. 16597NC
                                               i
                Defendant,
                                               i
         and
                                               1
TELEAMERICA ENTERTAINMENT,
INC.,                                          ;>
                Nominal Defendant.             )

                              PLAINTIFF'S BRIEF IN SUPPORT OF
                              MOTION  FOR DEFAULT JUDGMENT


                                               Rosenthal, Monhait , Gross
                                                      & Goddess, P.A.
                                               P. 0. Box 1070
                                               Wilmington, DE 19899-1070
                                                (302) 656-4433
                                                     Attorneys for Plaintiff

OF COUNSEL:

Jack Ashkenasy, Esquire
MEYERS TERSIGNI FELDMAN & GRAY
630 Third Avenue
New York, NY 10017
(212) 953-9000

DATED: June 19, 2001



                      TABLE OF CONTENTS

                                           PAGE:

TABLE OF CITATIONS                             ii

NATURE AND STAGE OF THE PROCEEDINGS            1
SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Jack Ashkenasy, Esquire
  • MEYERS TERSIGNI FELDMAN & GRAY
  • A DEFAULT JUDGMENT SHOULD BE
  • 1986 W'L 11546, Bifferato, J. (Tab A)
  • 1995 WL 44293, Silverman, J.
  • Plaintiff filed this derivative action on behalf of Teleamerica Entertainment,
  • Through the books and records case, plaintiff learned that A&E had paid O'Daly's
  • O'Daly was duly served with the complaint and summons under 10 De.L.C.
  • Rather than grant plaintiff's motion, however, the Court entered a Show Cause Order
  • Instead, he entered a general appearance by counsel on March 1, 1999, with no explanation
  • O'Daly appealed to the Delaware Supreme Court.
  • transmitted to him by three separate agencies: the Register in Chancery,
  • O'Daly is knowledgeable about litigation.
  • by September 15, 1997 - were served upon the registered agent of Teleamerica, which in turn
  • O'Daly denies receiving those papers, too, as part of his blanket
  • to O'Daly by registered mail to the principal place of business of Teleamerica, 41 Rampasture
  • Road, New York, as well as to O'Daly at that address, his last address known to plaintiff
  • In addition to delivery by the investigator,
  • presumption arises that the person so receiving and
  • Defendants claimed they were not aware of the
  • receipt, in the face of multiple transmittals by registered mail, Federal Express, regular
  • Chancery and plaintiff's counsel), against all credible evidence, then surely there would

  • 2 . LETTER

    EXTRACTED KEY WORDS
    JUDGEMENT
    COURT
    PLAINTIFF
    DEL
    MOTION
    MATTER
    APPEARANCE
    COMPLAINT
    SLIP
    EXTREME
    CONSCIOUS DISREGARD
    LAWRENCE
    JACOBS
    RESPONSE
    MERITS
    COUNSEL
    SUPR
    CHANCELLOR
    DEFENSES
    PREJUDICE
    CHANDLER
    DELAWARE
    HONORABLE JACK
    REMEDY
    SUNDOR ELEC
    DURHAM
    ENTRY
    ULTIMATE
    SANCTION
    
    BY HANI)DELIVERY
    The Honorable Jack B. Jacobs                                                  . .
    Vice Chancellor                                                               _."
    Court of Chancery                                                             i,..
    1020 North King Street                                                         :f i,, ;
    Wilmington, DE 1980 1                                                                 /ii
                                                                                    -_ .. .;-\
           RE:     Polymuse, Inc. v. Lawrence P. O'Dalv  et al. C.A. No. 16597-NC
    
    Dear Vice Chancellor Jacobs:
    
           Defendant Lawrence P.  O'Daly (the "Defendant") respectfully submits this response to Your
    Honor's request for an outline of Defendant's legal arguments in opposition to the motion for
    judgment which is currently set for a hearing on August 28,200O.
    
    ARGUMENT  1.
              ----.2       The case should proceed forward on its merits.
    
           On March 1, 1999, Defendant's counsel filed his appearance in this action on behalf of
    Defendant, thereby consenting to the jurisdiction of this Court and indicating Defendant's desire to
    litigate this matter. On March 3 1, 1999, after counsel was able to ascertain appropriate responses
    and defenses 10 the allegations in Plaintiff's complaint, Defendant filed his Answer with this
    On December  2,1999, after the remand of the appeal of this matter, Defendant again filed his answer
    to the complaint. On February 9,200O  Plaintiff propounded discovery to Defendant, and Defendant
    responded accordingly.
    
            Since his appearance in this action, Defendant has vigorously pursued his defense, including
    protecting his rights in the appeal of this matter, and will continue to do so. There has been m
    prejudice to Plaintiff from Defendant's actions, nor has there been any claim of prejudice. The
    policy of our law is to permit claims to be decided on their merits. Doritv v. vansweden,  Del. Ch.,
    C.A. No. 16X3-Sussex, Chandler, V.C., slip op. at 1. (Jan. 17, 1995); Delaware Medical Serv&
    Corp. v. maware Ambulance Service, Inc., Del. Ch., C.A. No. 6339, Brown, V.C., slip op. at 2
    (Feb. 17, 198 1). Accordingly, because the parties are before this court and the issues have been
    joined, this matter should proceed toward a decision on the merits.
    
    
    
    The Honorable Jack B. Jacobs
    August 14: 2000
    Page Two
    
    ARGUME:NT  2.
                -2           Default judgment is inappropriate in these circumstances.
    
           Default judgment is an "extreme remedy." Sundor Elec., Inc. v. E.V.T. Constr. Co., Del.
    Supr., 337  A.2d 651, 652 (1975); Durham v. Wilmington Trust Co., Del.  Supr., No. 57, 1988,
    Hermann, C.J. (retired), Order at 6 (July 7, 1988); In the Matter of: Hybrilonics. Inc., Del. Ch.,
    No. 8035, Hartnett, V.C., slip op at 3 (July 28, 1986) ("The entry of a default judgment is the
    ultimate sanction which is granted only under extreme circumstances.") Due to the extreme nature
    
    SNIPPETS:
  • Dear Vice Chancellor Jacobs:
  • Defendant Lawrence P. O'Daly respectfully submits this response to Your Honor's request for
  • On March 1, 1999, Defendant's counsel filed his appearance in this action on behalf of
  • On March 3 1, 1999, after counsel was able to ascertain appropriate responses and defenses 10
  • There has been m prejudice to Plaintiff from Defendant's actions, nor has there been any
  • The policy of our law is to permit claims to be decided on their merits.
  • Doritv v. vansweden, Del.
  • No. 16X3-Sussex, Chandler, V.C., slip op.
  • The Honorable Jack B. Jacobs
  • Default judgment is an "extreme remedy."
  • Supr., No. 57, 1988, Hermann, C.J., Order at 6;
  • Default judgment, therefore, "is reserved only for those rare occasions where there has been
  • No. 15223, Chandler, C., slip op.
  • at 2 (citing Sundor Elec..
  • Durham, Order at 6.
  • Pla.intiff, who has the burden on this motion, has not demonstrated that Defendant has
  • This is, therefore, not one of those "rare occasions" or "extreme circumstances" which
  • Delaware courts have refused to enter default judgments where defendants have "appeared" in

  • 3 . ANSWER OF DEFENDANT L. ODALY

    EXTRACTED KEY WORDS
    PRODUCTION
    PLAINTIFF
    DEFENDANT
    AGREEMENT
    TELE-AMERICA ENTERTAINMENT
    CORPORATE VEIL
    IMPROV
    FINANCING
    AFFIRMATIVE DEFENSE
    PROSECUTING
    DELAWARE
    POLYMUSE
    EPISODES
    RIGHTS
    JOINT VENTURE
    DEFENDANT LAWRENCE
    COMPLAINT
    CERTIFICATE
    SHAREHOLDERS
    ACCORDING
    REMAINDER
    PARAGRAPH
    DELIVERING
    PROTECTION
    ASSIGNMENT
    RNADE
    LITIGATION
    COST
    DEFICIT
    
                                                                                   ,.  .*  :  ,
                                                                                                   
                                                                                                   q ;a
                  IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                               IN AND FOR NEW CASTLE COUNTY
    
    POLYMUSE, INC.,
    
                    PLAINTIFF,                          ))
                    V.                                  ) Civil Action No. 16597NC . .
                                                        1
    LAWRENCE P. O'DALY                                  >1
                    DEFENDANT.                          )1
           and                                          B1                               L. .
    TELE-AMERICA ENTERTAINMENT, INC.                    11
                    NOMINAL DEFENDANT.                  1
          
    
    
    SNIPPETS:
     
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Admitted that a sharelholders certificate was issued to Plaintiff.
  • upon the condition that Plaintiff's would perfect the shareholders agreement signed by them.
  • Tele-America public.
  • According to the Delaware Secretary of State Tele-America
  • Tele-America Entertainment,
  • episodes described in through.
  • Tele-America was the delivering producer for A&cE's legal
  • protection and the requirements of insurers who issued "E&z~" insurance underwriting all
  • The IMPROV `WEST, INC. joint venture agreement was never assigned
  • The assignment to Tele-America was for only ownership of elements of
  • production until full payment was rnade to Tele-America, not rights.
  • has been upheld after protracted litigation in California.
  • No information was ever requested by Polymuse respecting Tele-America's activities.
  • Plaintiff's was rnade aware of Tele-America's financial activities during
  • No additional money was made beyond the cost of production.
  • In fact, the episodes were deficit
  • Defendant O'Daly was financing
  • Remainder of paragraph denied.
  • THIRD AFFIRMATIVE DEFENSE - ESTOPPEL
  • they should be estopped from prosecuting -their claim.
  • FlJTH AFFIRMATIVE DEFENSE - FAILURE TO PIERCE THE CORPORATE VEIL

  • 4 . PLAINTIFFS RESPONSE TO DEFENDANT ODALYS RULE 60(B) MOTION

    EXTRACTED KEY WORDS
    COURT
    PLAINTIFF
    MOTION
    DEFENDANT
    COUNSEL
    DELAWARE
    FACTS
    RENEWED MOTION
    FIRST CLASS
    CLASS MAIL
    RESPONSE
    WILLFUL
    CERTIFICATE
    CONTEMPT
    DISOBEDIENCE
    FAILURE
    TELEAMERICA ENTERTAINMENT
    VACATE
    ENTRY
    ORDER DIRECTING
    DEL
    DELIVERY
    MORTON
    LAWRENCE
    LEGAL PRINCIPLES
    UNITED STATES
    AUHLL
    COMPLAINT
    EXPIRATION
    
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                    lP
    
                                   IN AND FOR NEW CASTLE COUNTY
    
    
    
    POLYMUSE, INC.,
    
                     Plaintiff,
    
             v.
    
    LAWRENCE P. O'DALY,
    
                     Defendant,
    
             and
    
    TELEAMERICA  ENTERTAINMENT,
    INC.,
    
                     Nominal Defendant.
    
    
                                     PLAINTIFF'S RESPONSE TO
                             DEFENDANT O'DALY'S RULE  60(b) MOTION
    
    
             1.      On March 19, 1999, the Court entered judgment by default against
    
    defendant Lawrence P. O'Daly ("O'Daly").
    
             2.      Defendant O'Daly has moved pursuant to Rule 60(b) to vacate the default
    
    judgment. The motion is based on unexceptionable legal principles that default
    
    judgments are not favored in Delaware, and applications to open default judgments
    
    should be liberally entertained. Tellingly, O'Daly makes no effort whatsoever to
    
    contradict, refute or even comment on the undisputed facts of record demonstrating that
    
    he has been guilty of "wilful [and] conscious disregard for the rules of the Court . .."
    
    
    
    United States  Surqical Corp. v. Auhll, Del.Ch., C.A. No. 15223, Chandler, C. (May 28,
    
    1998), deserving of the most severe of sanctions -- a default judgment.
    
    SNIPPETS:
  • Nominal Defendant.
  • DEFENDANT O'DALY'S RULE 60MOTION
  • On March 19, 1999, the Court entered judgment by default against
  • defendant Lawrence P. O'Daly.
  • Defendant O'Daly has moved pursuant to Rule 60to vacate the default
  • he has been guilty of "wilful conscious disregard for the rules of the Court.
  • The record facts are set forth in plaintiffs renewed motion for entry of a
  • Notwithstanding that directive dictated by 8 Del.
  • Plaintiff first moved for a default judgment on December 7,
  • On December 8, 1998, the Court entered a Rule To Show Cause Order directing O'Daly
  • Cause order directing O'Daly to show cause on or before the expiration of twenty days
  • Show Cause Orders by first class mail and by personal delivery of the January 20,
  • Delaware counsel, but that is all he did -- he did not respond to either Rule To Show
  • Cause Order nor did he respond to the Complaint.
  • Plaintiff then filed a renewed motion for default judgment on March 16,
  • renewed motions for entry of a default judgment, the Court, nonetheless, entered Rule
  • O'Daly's response was to ignore the Orders.
  • prime example of O'Daly's contempt for this Court.
  • United States Surgical Corp. v. Auhll,
  • The cases cited by O'Daly for the legal principles noted in paragraph 2 above involve
  • Thus, these decisions are not germane to this case which deals with a conscious, willful
  • No. 14865, a books and records case predicated on O'Daly's failure to inform plaintiff and
  • CERTIFICATE OF SERVICE
  • Michael P. Morton, Esquire

  • 5 . RENEWED MOTION

    EXTRACTED KEY WORDS
    JUDGEMENT
    PLAINTIFF
    COURT
    CHANCERY
    COUNSEL
    PURSUANT
    EXHIBIT
    MORTON
    DEFENDANT
    MICHAEL
    REGISTER
    MAILINGS
    RESPONSIVE PLEADING
    HAMPTON BAYS
    YORK
    DELAWARE
    RENEWED MOTION
    ENTRY
    PACKAGE
    CERTIFICATE
    SOWERS
    DELIVERY
    INVESTIGATOR
    HERETO
    APPEARANCE
    ESQUIRE
    COMPLAINT
    CIVIL ACTION
    POST OFFICE
    
                                                                                                       
    
                   IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                                      IN AND FOR NEW CASTLE COUNTY
    
    
    -------------------------------------------------------------    X
    POLYMUSE, INC.,                                                  >
    
                                         Plaintiff,                  ;
    
             v.                                                      ;      C.A. No. 16597NC
                                                                     >
    LAWRENCE P. O'DALY,                                              )
    
                                         Defendant,                  11
             and                                                     >>
    TELEAMERICA  ENTERTAINMENT, INC.,                                )                                 
                                                                                                       
                                                                                                ('
                                                                                                     
                                                                                                L.
                                Nominal Defendant.                                                     
                                                                     ;                                -
    ------------------------------------------------------------- X
    
    
                                         NOTICE OF RENEWED MOTION
    
    
    TO:      Michael P. Morton, Esquire
             Michael P. Morton, P.A.
             1203 N. Orange Street
             Wilmington, DE 19801
    
    
             PLEASE TAKE NOTICE that the within Renewed Motion for default judgment will
    
    be presented at the earliest time convenient to the Court and counsel.
    
    
                                                            ROSENTHAL, MONHAIT, GROSS
                                                               & GRESS, P.A.
    
    
    
    
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • PLEASE TAKE NOTICE that the within Renewed Motion for default judgment will
  • be presented at the earliest time convenient to the Court and counsel.
  • RENEWED MOTION FOR ENTRY OF DEFAULT
  • JUDGMENT PURSUANT TO COURT OF CHANCERY RULE 55
  • Plaintiff renews its motion for entry of judgment by default against defendant
  • that the complaint in this action was duly served upon defendant O'Daly.
  • December 8, 1998 Order, Federal Express was unable to deliver a package containing
  • Rampasture Road, Hampton Bays, New York.
  • "[Tlhe time in which a defendant shall be required to appear and file a responsive pleading
  • Register in Chancery as provided in subsection of this section.
  • See Exhibit B to plaintiff's initial motion.
  • which called for delivery of the package at O'Daly's last known address.
  • retained a private investigator for this purpose.
  • Attached hereto as Exhibit A is a copy of the
  • None of these mailings, of course, called for a return receipt to be signed
  • counsel by the post office, so it is manifest that the post office forwarded them to O'Daly
  • Mr. Sowers is the same attorney who wrote to the Court on April
  • I, 1998, in Civil Action No. 14865, in connection with plaintiff's efforts in that case to
  • Michael P. Morton, Esquire, saying that he had been contacted by Mr. Sowers on Mr.
  • Mr. Morton filed an appearance in this action on March 1,
  • CERTIFICATE OF SERVICE
  •    |