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ARBOR PLACE v ENCORE OPPORTUNITY FUND Click to find out why . . .



Keywords & Phrases
CaseNo: C.A. No. 18,928, CourtCode: CC, CourtName: IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE, Plaintiff: ARBOR PLACE, State: DE Delaware, UniqueCaseRef: DE>CC>00018928, Funds, Arbor, Encore Opportunity, Investment, Encore, Del, Books, Delaware, Strategic Fund, Exhibit, Agreements, Underlying Investments, Jnc, Investors, Tax, Valuations, Common Members, Improper Purpose, Disclosure, Master Funds, Confidentiality, Encore Capital Management, Proper Purpose, Operating Agreements, Portfolio, Opportunity Fund, Complaint, Managing Member, Limited Liability Company, Montgomery Cellular, Paragraph, Suspension, Withdrawals, Bragar Wexler Eagel, Jnc Opportunity , ContentID: 120246331

Case Documents
1 2001-11-27 DEFENDANTS POST-TRIAL BRIEF
[ see first page and extracted highlights below  ] ItemID: 127072
34 pages
PDF
2 2001-11-27 POST-TRIAL BRIEF OF PLAINTIFF ARBOR PLACE
[ see first page and extracted highlights below  ] ItemID: 127071
25 pages
PDF
3 2001-06-26 ANSWER AND AFFIRMATIVE DEFENSES
[ see first page and extracted highlights below  ] ItemID: 114994
6 pages
PDF
4 2001-05-29 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 114995
6 pages
PDF
Total Documents: 4 documents , 71 pages
Price: $ 34.95


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1 . DEFENDANTS POST-TRIAL BRIEF

EXTRACTED KEY WORDS
ENCORE OPPORTUNITY
FUNDS
PLAINTIFF
MEMBERS
COURT
EXHIBIT
DELAWARE
DEFENDANTS
JNC
AGREEMENTS
DEL
INVESTMENT
PROPER PURPOSE
PORTFOLIO
ENCORE CAPITAL MANAGEMENT
ATTORNEYS
MANAGING MEMBER
DISCLOSURE
INVESTORS
SUSPENSION
WITHDRAWALS
CONFIDENTIALITY
OFFERING CIRCULARS
BERMAN LLP
WILMINGTON
LIMITED LIABILITY
COMMON MEMBER
SECURITIES
AUTHORITIES
                                                                                ORIGINAL
                 IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

                                 IN AND FOR NEW CASTLE COUNTY


ARBOR PLACE, L.P.,

                  Plaintiff,
                                                    1
           V.                                               C.A. No. 18928NC
                                                    ;
ENCORE OPPORTUNITY FUND, L.L.C.,
ENCORE STRATEGIC FUND, L.L.C. and                   ,'
ENCORE CAPITAL MANAGEMENT,
L.L.C.,                                             ;

                  Defendants.



                                 DEFENDANTS' POST-TRIAL  BRIEF




                                       YOUNG  CONAWAY  STARGATT & TAYLOR, LLP
                                       William D. Johnston
                                       John J. Paschetto
                                       The Brandywine Building
                                       1000 West Street, 17th Floor
                                       Wilmington, Delaware 19801
                                       (302) 571-6608
                                       Attorneys for Defendants

OF COUNSEL:

Eric Rieder
Eric L. Cohen
Robinson Silverman Pearce
  Aronsohn & Berman LLP
1290 Avenue of the Americas
New York, New York 10104-0053
(212) 541-2000

Dated: November 27,200l



SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • Plaintiff,
  • ,' ENCORE CAPITAL MANAGEMENT, L.L.C.,
  • DEFENDANTS' POST-TRIAL BRIEF
  • Wilmington, Delaware 19801
  • Attorneys for Defendants
  • Eric Rieder Eric L. Cohen Robinson Silverman Pearce Aronsohn & Berman LLP 1290 Avenue of the
  • TABLE OF AUTHORITIES.
  • Arbor's Awareness of the Structure of the Investment And Separateness of the
  • Companies and the JNC Funds.
  • The Companies' Suspension of Withdrawals.
  • ARBOR, AS A NON-MEMBER AND NON-SHAREHOLDER OF JNC
  • UNDER SECTION 9.2 OF THE AGREEMENTS.
  • Arbor Failed to Demonstrate a Proper Purpose.
  • The Managing Member Has a Good Faith Belief that Disclosure Of the
  • Disclosure of the Portfolio Should Also Be Denied Under the Act.

  • 2 . POST-TRIAL BRIEF OF PLAINTIFF ARBOR PLACE

    EXTRACTED KEY WORDS
    ARBOR
    ENCORE
    INVESTMENT
    DEL
    BOOKS
    STRATEGIC FUND
    COURT
    UNDERLYING INVESTMENTS
    DEFENDANTS
    TAX
    PLAINTIFF
    VALUATIONS
    COMMON MEMBERS
    IMPROPER PURPOSE
    DELAWARE
    MASTER FUNDS
    INVESTORS
    OPERATING AGREEMENTS
    OPPORTUNITY FUND
    MONTGOMERY CELLULAR
    BRAGAR WEXLER EAGEL
    JNC OPPORTUNITY
    PRODUCTION
    CONFIDENTIALITY
    DISCLOSURE
    PARTNERSHIP
    LIMITED LIABILITY COMPANY
    BOND PURCHASE
    PATRIOT TAX CREDIT
    
                                         ORIGINAL.
              IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
    
                              IN AND FOR NEW CASTLE COUNTY
    
    
    ARBOR PLACE, L.P.,
    
                         Plaintiff,
    
                 V.                                    ) Civil Action No. 18928 NC
    
    ENCORE OPPORTUNITY  FUND,L.L.C.,                   ;
    ENCORE STRATEGIC FUND, L.L.C. and
    ENCORE CAPITAL MANAGEMENT, L.L.C.                  ;
    
                         Defendants.
    
    
    
                 POST-TRIAL BRIEF OF PLAINTIFF ARBOR PLACE, L.P.
    
    
                                        ROSENTHAL MONHAIT GROSS  & GODDESS, P.A.
                                        Norman M. Monhait
                                        Suite 140 1, Mellon Bank Center               _
                                        919 N. Market Street
                                        P.O. Box 1070
                                        Wilmington, Delaware 19899-039 1                   ..- !
                                                                                           _  ,,
                                                                                            _ `.
                                        Attorneys for Plaintiff                             I  _..'..3
    OF COUNSEL:
    
    Paul D. Wexler
    Lawrence P. Eagel
    BRAGAR WEXLER EAGEL
    & MORGENSTERN, LLP
    900 Third Avenue
    New York, NY 10022
    (212) 308-5858
    
    
    November 27, 2001
    
    
    
                                   TABLE OF CONTENTS
    
    
    SNIPPETS:
  • IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE
  • POST-TRIAL BRIEF OF PLAINTIFF ARBOR PLACE,
  • BRAGAR WEXLER EAGEL & MORGENSTERN,
  • The Underlying Investments Are Within Encore's
  • Dobler v. Montgomery Cellular Holdinn Co., Del.
  • in support of its request for an order directing that the defendants provide plaintiff with
  • the names and addresses of the other Common Members of Encore Opportunity Fund,
  • LLC (the "Opportunity Fund") and Encore Strategic Fund,
  • the books and records of the Funds which relate to the process of valuing the Funds'
  • the respective Limited Liability Company Agreement of each of the Funds3 and Section 18 305
  • valuations of the Funds' assets and payments of large management fees to the detriment of the
  • While defendants argue that confidentiality is the reason for their stonewalling,
  • investors and ask if their names and addresses could be released to Arbor.
  • were the JNC Opportunity Fund Ltd. and the JNC Strategic Fund, Ltd., respectively.
  • JNC Opportunity and JNC Strategic are sometimes collectively referred to herein as the
  • Arbor is an Illinois limited partnership with its principal place of business at Salem,
  • such a manner that it is to be treated as a partnership for U.S. tax purposes.
  • "the Fundinvestment strategy executed at the Fund
  • sued Encore and the Fund to compel the production of books and records.
  • other Common Members of the Funds pursuant to Section 9.2 of the Operating Agreements,
  • See Bond Purchase, L.L.C. v. Patriot Tax Credit Properties, L.P., Del.
  • improper purpose or that the Partnership will be injured by this disclosure.

  • 3 . ANSWER AND AFFIRMATIVE DEFENSES

    EXTRACTED KEY WORDS
    PARAGRAPH
    PLAINTIFF
    DEFENDANTS
    FUNDS
    DENY
    ENCORE
    ADMIT
    REQUEST
    MEMBERS
    LIMITED LIABILITY COMPANY
    LIABILITY COMPANY
    WITHDRAW
    YORK
    AGREEMENTS
    COURT
    ESQUIRE
    LLP
    WEXLER
    ENCORE CAPITAL MANAGEMENT
    ATTORNEYS
    HEREBY
    INVESTMENTS
    WINDING
    TERMINATION PROCESS
    LETTERS
    REPEAT
    RE-ALLEGE DEFENDANTS
    RESPONSES
    FULLY SET
    
                                                                                                       
                      IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                
                                                                                                       
                                                                                                   !
                                                IN AND FOR NEW CASTLE COUNTY                           
                                                                                                       
    
    ARBOR PLACE, L.P.,                                                   >
    
                            Plaintiff,
    
               V.                                                        )    C.A. No. 18928NC
    
    ENCORE OPPORTUNITY FUND, L.L.C.,                                     i
    ENCORE STRATEGIC FUND, L.L.C. and                                    j
    ENCORE CAPITAL MANAGEMENT FUND,                                      )
    L.L.C.,                                                              >
    
                            Defendants.                                  1
    
    
                                             ANSWER AND AFFIRMATIVE DEFENSES
    
    
    
                            Defendants Encore Opportunity Fund, L.L.C. ("Opportunity"), Encore Strategic
    
    Fund, L.L.C, ("Strategic") and Encore Capital Management Fund, L.L.C. ("Encore")
    
    (collectively "Defendants"), by their attorneys, Young Conaway Stargatt & Taylor, LLP, and
    
    Robinson Silverman Pearce Aronsohn & Berman LLP, as and for their Answer to the Complaint
    
    dated May 29, 2001, ("Complaint") of Plaintiff Arbor Place, L.P., ("Plaintiff'), hereby respond
    
    to and affirmatively defend the Complaint as follows:
    
                            1.            Deny knowledge or information sufficient to form a belief
    
    the allegations contained in Paragraph 1 of the Complaint
    
                            2.            Deny the allegations contained in Paragraph 2 of the
    
    admit that Plaintiff made certain investments during the period 1997-1999 in the Funds
    
    
                                                                  -l-
    10849-00001/895127.2
    WP3:651531  .I                         99999.1378
    
    SNIPPETS:
  • Defendants Encore Opportunity Fund, L.L.C., Encore Strategic
  • Robinson Silverman Pearce Aronsohn & Berman LLP, as and for their Answer to the Complaint
  • dated May 29, 2001, of Plaintiff Arbor Place, L.P.,, hereby respond
  • admit that Plaintiff made certain investments during the period 1997-1999 in the Funds
  • Deny the allegations contained in Paragraph 3 of the Complaint.,
  • admit that Encore is a Delaware limited liability company and that Encore is the Managing
  • Member of the Funds.
  • Opportunity and, on or about November 2 1, 2000, made a request to withdraw its entire
  • pending such winding down and termination process in an effort to protect the interests of
  • Repeat and re-allege Defendants' responses to the allegations contained in
  • ("Agreements"), and refer this Court to the language of Section 9.2 of the respective
  • Paragraphs 1 through 12 of the Complaint, as set forth above, as if fully set forth herein.
  • Defendants respond.ed to Plaintiffs various letters by producing all
  • Defendants owe certain duties to all of their members, including, without
  • Fund, L.L.C., and Encore Capital Management Fund, L.L.C. request that the Court enter its
  • New York, New York 10104-0053
  • I, John J. Paschetto, Esquire, hereby certify that, on June 26, 2001, I caused copies of the
  • foregoing document to be served in the manner indicated on the following attorneys of record:
  • Norman M. Monhait, Esquire
  • Bragar Wexler Eagel & Morgenstern,

  • 4 . COMPLAINT

    EXTRACTED KEY WORDS
    ENCORE
    PLAINTIFF
    ARBOR
    MEMBERS
    DEFENDANTS
    INVESTMENT
    DELAWARE
    REQUEST
    LETTERS
    DEMAND
    REASONS
    DEL
    COURT
    REQUIRING
    ATTORNEYS
    LAWS
    BUSINESS
    LIABILITY COMPANY
    WITHDRAW
    RESTATEMENT
    BOOKS
    AGREEMENTS
    SUITE
    MANAGEMENT
    LAPPIN
    LOSS
    BREACH
    PARAGRAPHS
    REFERENCE
    
           IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE                                           
                                   IN AND FOR NE:W CASTLE COUNTY
    
    ARBOR PLACE, L.P.,
    
                      Plaintiff,
                                               ;
              V.                               )   C i v i l   A c t i o n   N
                                                                                  /trq$Lo  .
                                                                                                
                                                                          :~ :          c-~,
    ENCORE OPPORTUNITY FUND, L.L.C.,           ;                    Clji'               -.-
                                                                    " -..I              -, .*
    ENCORE STRATEGIC FUND, L.L.C. and )                                                 : .-
                                                                    .-. 1               _ -.
    ENCORE CAPITAL MANAGEMENT, L.L.C.  )                                               C. ;
                                                                    r,                % f`..:        .'
                                                                    .- _              CT>              
                      Defendants.              i                    :.
                                                                    _.                  : s
                                                                                       -w
                                                                                       --              .
                                                                    :, ::
                                                                    ( - -..I            e...
                                      COMPLAINT                     :i :' !.~I
                                                                          ",?          co
              Plaintiff      Arbor       Place L.P.     ("Arbor"),-; by  '?ts
    
    undersigned attorneys, as and for its complaint against the
    
    defendants, alleges as follows, upon personal knowledge as to
    
    its own acts and upon information and believe as to all  ot.her
    
    allegations:
    
              1.      Arbor is a limited partnership formed under -the
    
    laws of Illinois, with its principal place of business at Salem,
    
    Massachusetts.
    
              2.      Arbor is a common member  Iof defendants Encore
    
    Opportunity Fund,      Inc.      ("Opportunity") and Encore Strategic
    
    Fund, L.L.C.      ("Strategic") (collectively the "Funds"). Arbor
    
    invested $500,000 in the Funds in 1397 and an additional  $3.5
    
    SNIPPETS:
  • Plaintiff Arbor Place L.P.,-;
  • undersigned attorneys, as and for its complaint against the
  • laws of Illinois, with its principal place of business at Salem,
  • Arbor is a common member Iof defendants Encore
  • Inc. and Encore Strategic
  • liability companies formed under the laws of Delaware with their
  • Defendant Encore Capital Management,
  • as the manager of the Funds.
  • Mr. Lappin made a written request on behalf of Arbor to
  • completely withdraw Arbor's investment in the Funds.
  • loss and a:Loss for the entire year of nearly 35%.
  • demanded access to certain books and record of the
  • Funds in order to ascertain the value of its investment and the
  • the names and addresses of the other members of the Funds.
  • Encore rece:ived each of these letters.
  • BREACH OF CONTRACT
  • VIOLATION OF 6 DEL.
  • paragraphs:L through 12 above by reference.
  • Demand Letters for purposes reasonably re.Lated to its interest
  • to an order from this Court requiring Encore and the Funds to
  • the restatement of the Funds' performance.
  • s9.2 of the Agreements and §18-305 of the Delaware Limited
  • Liability Company Act relating to the form and manner of making
  • the extent and reasons for the restatement of the Funds'
  • Suite 1401, Mellon Bank Center
  •    |