Professional Documents
Culture Documents
File a Motion:
District of Delaware
The following transaction was received from Alan Michael Root entered on 5/18/2011 at 4:44 PM EDT and filed on 5/18/2011
Case Name: New Century TRS Holdings, Inc.
Case Number: 07-10416-KJC
Document Number: 10483
Docket Text:
Emergency Motion to Approve // The New Century Liquidating Trust's Emergency Motion to (I) Enforce the Modified Confirmation Order as it Relates to the Plan Injunction
and (II) Clarify the Global Relief Stay Order Dated September 3, 2008 Filed by New Century Liquidating Trust. (Attachments: # (1) Notice # (2) Exhibit A# (3) Exhibit B#
(4) Exhibit C# (5) Exhibit D# (6) Exhibit E# (7) Exhibit F# (8) Proposed Form of Order) (Root, Alan)
https://ecf.deb.uscourts.gov/cgi-bin/Dispatch.pl?884886210134727 5/18/2011
Internal CM/ECF Live Database Page 2 of 28
Kenneth E. Aaron on behalf of Creditor National City Commercial Capital Company, LLC
DE_BANKRUPTCY@weirpartners.com, smazur@weirpartners.com
Elihu Ezekiel Allinson, III on behalf of Creditor Town Park Renaissance, LLC
ZAllinson@SHA-LLC.com, ecf@williamdsullivanllc.com;KDavis@SHA-LLC.com;hcoleman@sha-llc.com
Matthew P. Austria on behalf of Defendant Bryan Enterprises, Inc. d/b/a Bryan Press
maustria@werbsullivan.com
Robert R. Barnes on behalf of Defendant Allen Matkins, Leck, Gamble, Mallory & Matsis, LLP
bbarnes@allenmatkins.com
Thomas D.H. Barnett on behalf of Creditor LaSalle Bank National Association, as Trustee
deecf@drapgold.com, michelleh@drapgold.com;jacobe@drapgold.com;dominettec@drapgold.com;pamelatd@drapgold.com
Richard Michael Beck on behalf of Defendant WELLS FARGO BANK N.A. a/k/a WELLS FARGO ITS, as trustee of the trust formed under the New Century Financial
Corporation Supplemental Benefit and Deferred Compensation Trust Agreement
rbeck@klehr.com, lstanton@klehr.com
Steven N. Berger on behalf of Defendant Fusion Marketing Partners LLC n/k/a Fusion Contact Centers LLC
snb@engelmanberger.com, sjm@engelmanberger.com
Joseph Bodnar on behalf of Plaintiff Alan M. Jacobs, as Liquidating Trustee, of the New Century Liquidating Trust
jbodnar@bodnarlaw.net
William Pierce Bowden on behalf of Plaintiff UBS Real Estate Securities Inc.
wbowden@ashby-geddes.com
https://ecf.deb.uscourts.gov/cgi-bin/Dispatch.pl?884886210134727 5/18/2011
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
IN RE:
Chapter 11
NEW CENTURY TRS HOLDINGS, INC., et
al., a Delaware Corporation, Case No. 07-10416 (KJC)
Debtors.1
Alan M. Jacobs, in his capacity as Liquidating Trustee to the New Century Liquidating
Trust (the “Trust”), by and through his undersigned counsel filed the New Century Liquidating
Trust’s Emergency Motion to (I) Enforce the Modified Confirmation Order as it Relates to the
Plan Injunction and (II) Clarify the Global Relief Stay Order Dated September 3, 2008 (the
“Injunction Motion”) with the United States Bankruptcy Court for the District of Delaware, 824
Market Street, Wilmington, Delaware 19801 (the “Bankruptcy Court”). Copies of the Injunction
1
The pre-confirmation Debtors were the following entities: New Century Financial Corporation (f/k/a New
Century REIT, Inc.), a Maryland corporation; New Century TRS Holdings, Inc. (f/k/a new Century Financial
Corporation), a Delaware corporation; New Century Mortgage Corporation (f/k/a JBE Mortgage) (d/b/a NCMC
Mortgage Corporate, New Century Corporation, New Century Mortgage Ventures, LLC), a California corporation;
NC Capital Corporation, a California corporation; Home123 Corporation (f/k/a The Anyloan Corporation,
1800anyloan.com, Anyloan.com), a California corporation; New Century Credit Corporation (f/k/a Worth Funding
Incorporated), a California corporation; NC Asset Holding, L.P. (f/k/a NC Residual II Corporation), a Delaware
limited partnership; NC Residual III Corporation, a Delaware corporation; NC Residual IV Corporation, a Delaware
corporation; New Century R.E.O. Corp., a California corporation; New Century R.E.O. II Corp., a California
corporation; New Century R.E.O. III Corp., a California corporation; New Century Mortgage Ventures, LLC (d/b/a
Summit Resort Lending, Total Mortgage Resource, Select Mortgage Group, Monticello Mortgage Services, Ad
Astra Mortgage, Midwest Home Mortgage, TRATS Financial Services, Elite Financial Services, Buyers Advantage
Mortgage), a Delaware limited liability company; NC Deltex, LLC, a Delaware limited liability company; NCoral,
L.P., a Delaware limited partnership; and New Century Warehouse Corporation, a California corporation.
130566.01600/40195156v.1
The Trust has contemporaneously herewith filed a motion to shorten notice with respect
to the Injunction Motion (the “Motion to Shorten Notice”). If granted, the Motion to Shorten
Notice will schedule an expedited hearing on the Injunction Motion for May 24, 2011 or at the
earliest convenience of the Bankruptcy Court (the “Hearing”) and will schedule an objection
deadline for the Injunction Motion consistent with the Hearing. Upon entry of an order
regarding the Motion to Shorten Notice, the Trust will serve the same on parties receiving this
notice to provide them with notice of the Hearing and objection deadline for the Injunction
Motion.
WITH THIS NOTICE, THE BANKRUPTCY COURT MAY GRANT THE RELIEF
HEARING.
IN RE:
Chapter 11
NEW CENTURY TRS HOLDINGS, INC., et
al., a Delaware Corporation, Case No. 07-10416 (KJC)
Debtors.1
Alan M. Jacobs, in his capacity as Liquidating Trustee to the New Century Liquidating
Trust (the “Trust”), by and through his undersigned counsel, hereby moves this Court (the
“Motion”) for an order (I) enjoining Ms. Leslie Barnes Marks (“Marks”) from pursuing the
California Action (defined below) to the extent such action is in violation of the Modified Plan,
Modified Confirmation Order and Bankruptcy Code and (II) clarifying the terms of the Global
1
The pre-confirmation Debtors were the following entities: New Century Financial Corporation (f/k/a New
Century REIT, Inc.), a Maryland corporation; New Century TRS Holdings, Inc. (f/k/a new Century Financial
Corporation), a Delaware corporation; New Century Mortgage Corporation (f/k/a JBE Mortgage) (d/b/a NCMC
Mortgage Corporate, New Century Corporation, New Century Mortgage Ventures, LLC), a California
corporation; NC Capital Corporation, a California corporation; Home123 Corporation (f/k/a The Anyloan
Corporation, 1800anyloan.com, Anyloan.com), a California corporation; New Century Credit Corporation (f/k/a
Worth Funding Incorporated), a California corporation; NC Asset Holding, L.P. (f/k/a NC Residual II
Corporation), a Delaware limited partnership; NC Residual III Corporation, a Delaware corporation; NC
Residual IV Corporation, a Delaware corporation; New Century R.E.O. Corp., a California corporation; New
Century R.E.O. II Corp., a California corporation; New Century R.E.O. III Corp., a California corporation; New
Century Mortgage Ventures, LLC (d/b/a Summit Resort Lending, Total Mortgage Resource, Select Mortgage
Group, Monticello Mortgage Services, Ad Astra Mortgage, Midwest Home Mortgage, TRATS Financial
Services, Elite Financial Services, Buyers Advantage Mortgage), a Delaware limited liability company; NC
Deltex, LLC, a Delaware limited liability company; NCoral, L.P., a Delaware limited partnership; and New
Century Warehouse Corporation, a California corporation.
130566.01600/40195182v.1
JURISDICTION AND VENUE
1. This Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and
1334. Venue of these cases and this Motion in this District is proper pursuant to 28 U.S.C.
BACKGROUND
originated a loan to Marks in the amount of $495,000.00 (the “2006 Loan”). The 2006 Loan was
Marks’s fourth “cash-out” refinance on her primary “owner occupied” residence located at 3099
3. On June 26, 2006, approximately three months after Home123 originated the
2006 Loan, Marks filed a complaint in the Superior Court of the State of California, County of
Alameda (Case No. RG06276972) against, among others, Home 123 and Debtor New Century
Mortgage Corporation (as subsequently amended, the “2006 Complaint”). In the 2006
Complaint, Marks alleged intentional fraudulent misrepresentation and negligence; breach of the
implied covenant of good faith and fair dealing; mortgage loan fraud; and violation of the City of
4. As a result of the filing of the 2006 Complaint, Debtors retained the 2006 Loan
and did not seek to sell or securitize the 2006 Loan, but retained it on a warehouse line of credit.
Specifically, on July 13, 2006, after the Debtors were unable to sell or securitize the 2006 Loan,
the 2006 Loan was part of a collateral package pledged to DB Structured Products, Inc. (“DB”)
pursuant to the Master Repurchase Agreement with DB dated as of April 14, 2006 (the “MRA”).
The 2006 Loan remained subject to the DB line until it was seized by DB on March 30, 2007,
when New Century was unable to pay the approximately $200,000 million in estimated
2
130566.01600/40195182v.1
5. On April 2, 2007, the 2006 Loan was service released to Ocwen Loan Servicing at
the direction of DB. On the same date, the Debtors filed petitions for relief under chapter 11 of
6. On September 30, 2009, the Trustee filed the Modified Second Amended Joint
Chapter 11 Plan of Liquidation, Dated as of September 30, 2009 (the “Modified Plan”). On that
same date, the Trust filed the Motion of the Trustee for an Order (I) Establishing Procedures for
Limited Solicitation and the Tabulation of Votes to Accept or Reject the Modified Plan; (II)
Approving Proposed Disclosure Statement for Modifications to the Plan; (III) Scheduling a
Hearing on Confirmation of the Modified Plan and Approving Related Notice Procedures; and
7. On November 20, 2009, the Bankruptcy Court entered an order confirming the
8. On December 1, 2009 (the “Modified Effective Date”), the Modified Plan became
effective.
9. On September 3, 2008, the Court entered the Amended Order Terminating the
Automatic Stay under Section 362(a) of the Bankruptcy Code to Permit the Commencement or
Continuation of Any Act to Exercise Any Rights and Remedies Upon Interests in Real Property
[D.I. 8892] (the “Global Relief Stay Order”). The Global Relief Stay Order provides relief from
the automatic stay for parties to exercise any applicable rights and remedies against real property
3
130566.01600/40195182v.1
10. On March 24, 2009, a complaint (the “Adversary Complaint”) instituting
adversary proceeding 09-50244 (KJC) (the “Marks Proceeding”) was served and filed by Marks
against the Debtors, which asserted the following causes of action: (i) Fraudulent Conveyance,
(ii) Violation of Chapter 11 of the Bankruptcy Code, (iii) Fraudulent Misrepresentation and
Negligence, (iv) Violation Truth-in-Lending Act 15 U.S.C. 1601 et seq., (v) Violation of
Business and Professions Code Section 17200, et seq. (vi) Violations of RESPA, and (vii) Quiet
11. In an effort to resolve the dispute between Marks and the Trust, the Trust agreed,
pursuant to the terms of a settlement agreement dated August 23, 2010 (the “Settlement
Agreement”), to make a payment to Marks in the amount of $80,000.00 (the “Settlement Sum”)
in exchange for a release of all “claims, damages, actions, suits, causes of action, rights, liens,
demands, obligations and/or liabilities,” and in full and final settlement of all claims Marks had
against the Trust and the Debtors. A true and complete copy of the Settlement Agreement is
12. On September 2, 2010, after the Trust fulfilled its obligations under the
Settlement Agreement, Marks filed a Notice of Dismissal of the Adversary Proceeding [Adv.
D.I. 52]. On the same day, the Marks Proceeding was closed.
13. On October 19, 2010, Marks filed the Request for Stay of Dismissal and Status
Conference Statement [Adv. D.I. 53] (the “Request for Stay”), whereby Marks requested a stay
of dismissal of the Adversary Proceeding based on her claim that the Trust violated the
Settlement Agreement.
4
130566.01600/40195182v.1
14. On the same day, the Trust filed its Response to Leslie Marks' Request for the
Stay of Dismissal and Status Conference Statement [Adv. D.I. 54] (“Response to Request for
Stay”), whereby the Trust responded to Marks’ allegations set forth in the Request for Stay.
15. On November 1, 2010, Marks filed the Ex Parte Application for Temporary
Restraining Order and Preliminary Injunction [Adv. D.I. 56] (the “TRO Application”, and
together with the Request for Stay, the “Marks Requests”), whereby Marks requested a
temporary restraining order and preliminary injunction to prevent, inter alia, any party from
“initiating foreclosure procedures or unlawful detainer procedures of any kind with relation to
Plaintiff’s primary residence commonly known as 3099 Suter Street, Oakland, CA 94602.”
16. On December 14, 2010, the Trust filed its Response to Leslie Marks’ Ex Parte
Application for Temporary Restraining Order and Preliminary Injunctions [Adv. D.I. 63] (the
“Response to TRO Application”), whereby the Trust responded to the relief sought in Marks’
TRO Application.
17. On, February 24, 2011, an evidentiary hearing to consider the Marks Requests
18. On May 10, 2011, a status conference (the “Status Conference”) was held before
the Court with respect to the Marks Proceeding. At the conclusion of the Status Conference, the
Court entered an Order denying the Marks Requests and ordering that the Marks Proceeding be
closed [Adv. D.I. 95] (the “Marks Order”). In connection with the Marks Order, the Court also
issued a memorandum opinion [Adv. D.I. 94] (the “Memorandum”) setting forth the factual and
legal reasons why the Court denied the Marks Requests. In the Memorandum, the Court held
that the record did not support a finding that the Trust failed to comply with the terms of the
Settlement Agreement.
5
130566.01600/40195182v.1
19. The Marks Proceeding was again closed on May 11, 2011.
20. On May 16, 2011, Marks served the Motion for Reconsideration of May 10, 2011
Order and Request for Clarification of the 2008 Blanket Order for Relief from Stay (the “Motion
for Reconsideration”).
21. On March 28, 2011, the United States District Court for the District of Hawaii
issued an opinion in Uy v. Wells Fargo Bank, N.A., et al., 2011 U.S. Dist. LEXIS, (March 28,
2011, D. Hawaii). In Uy, the plaintiff filed a complaint against Wells Fargo Bank, N.A., as
Trustee for Carrington Mortgage Loan Trust (“Wells Fargo”), NCMC, and Mortgage Electronic
transaction. The complaint sought both injunctive and monetary relief against the defendants,
including NCMC. In connection with Wells Fargo’s motion for summary judgment, the Court
requested briefing as to “whether [the Debtors’] bankruptcy affects the Court’s ability to now
rule on the instant motion.” Id. at *3 (citing 11 U.S.C. § 362(a)). The court held that, in light of
the Global Relief Stay Order, “New Century’s bankruptcy has not prevented Plaintiff from
serving New Century with the Complaint or otherwise pursuing its claims against this
22. On April 12, 2011, Marks submitted a letter to the Court regarding the Global
Relief Stay Order, a true and complete copy of which is attached hereto as Exhibit B (the
“Marks Letter”). In the Marks Letter, Marks states that the Global Relief Stay Order grants relief
from the automatic stay and Plan injunction “to all parties with real property claims against New
2
In Uy, the Court observed that “the docket indicates that New Century and MERS have not been served with a
summons and a copy of the Complaint. The Court will issue a separate Order to Show Cause why the claims
against those defendants should not be dismissed without prejudice pursuant to Fed. R. Civ. P. 4(m).” Id. at *
2-3.
6
130566.01600/40195182v.1
Century/Home 123…[, and the] allegations of fraud could have been addressed in
California…[as the] Trust has no protection of the Automatic Stay as it related to my property,
23. Subsequently, on April 25, 2011, Marks filed the Second Amended Verified
Complaint for Damages (the “Second Amended Complaint”) in the action captioned Leslie
Marks v. Trenor Askew, et al. (Case No. RG 10546853) pending in the Alameda County
Superior Court (the “California Action”). The Second Amended Complaint names the Trust as a
defendant in the California Action. A true and complete copy of the Second Amended
24. The Second Amended Complaint seeks monetary damages against the named
25. On May 12, 2011, following the Marks Order and Memorandum, the Trust sent
Marks a letter (the “Trust Letter”) requesting that she amend the Second Amended Complaint to
make it clear that Marks is in no way seeking any monetary relief against the Trust in the
California Action and is only naming the Trust as a nominal defendant in an effort to remove the
Debtors’ name from the title to the Property. The Trust also advised Marks that if the Second
Amended Complaint was not modified as requested therein, and as required by the Bankruptcy
Code, Modified Confirmation Order, Global Relief Stay Order and Settlement Agreement, by the
end of the day on May 16, 2011, the Trust would have no choice but to bring this matter to the
attention of the Court. A true and complete copy of the Trust Letter is attached hereto as Exhibit
D.
26. On that same day, in response to the Trust Letter, Marks advised counsel to the
Trust by e-mail that she has “no intention of releasing the Trust in these matters. I continue to
7
130566.01600/40195182v.1
suffer Manifest injustice at the hands of the trust and its counsel. And I stand by my decisions to
that regard.” A true and complete copy of Marks’ May 12, 2011 e-mail (the “Marks Email”) is
attached hereto as Exhibit E. The Marks Email combined with the Motion for Reconsideration
make clear that Marks has no intention of withdrawing the Second Amended Complaint to the
27. On March 23, 2011, Marks filed for relief under chapter 13 of the Bankruptcy
Code. Marks’ chapter 13 case is pending in the United States Bankruptcy Court for the Northern
RELIEF REQUESTED
I. The Marks Bankruptcy Does Not Stay the Relief Sought by the Trust
28. As a preliminary matter, despite the Marks Bankruptcy, the Trust may pursue the
relief requested herein. Pursuant to section 362(a) of the Bankruptcy Code, the filing of a
bankruptcy petition “operates as a stay, applicable to all entities, of (1) the commencement or
other action or proceeding against the debtor that was or could have been commenced before the
commencement of the case under this title, or to recover a claim against the debtor that arose
before the commencement of the case under this title.” 11 U.S.C. § 362(b) (emphasis added).
defendant in an action commenced by a debtor. See Gordon v. Whitmore (In re Merrick), 175,
B.R. 333, 336 (9th Cir. B.A.P. 1994) (holding that defensive action taken by defendants in state
court lawsuit commenced by a debtor does not violate the automatic stay); see also White v. City
of Santee (In re White), 186 B.R. 700, 703 (9th Cir. B.A.P. 1995) (finding “no case that supports
8
130566.01600/40195182v.1
the proposition that the automatic stay prevents a defendant to continuing [sic] to defend against
a pre-bankruptcy lawsuit. To the contrary, there is substantial authority that the stay is
inapplicable to postpetition defensive action in a prepetition suit brought by the debtor.”); Carley
Capital Group v. Fireman’s Fund Ins. Co., 889 F.2d 1126, 1127 (D.C. Cir. 1989); Martin-
Trigona v. Champion Federal Savings and Loan Ass’n, 892 F.2d 575 (7th Cir. 1989); In re Berry
Estates, 812 F.2d 67, 71 (2d Cir. 1987); Freeman v. Commissioner of Internal Revenue, 799 F.2d
1091, 1092-93 (5th Cir. 1986); Cathey v. Johns-Manville Sales Corp., 711 F.2d 60, 61 (6th Cir.
1983); Ass’n of St. Croix Condominium Owners v. St. Croix Hotel Corp., 682 F.2d 446, 448 (3d
Cir. 1982) As the Eighth Circuit Court pointed out in Brown v. United States, there is no “policy
of preventing persons whom the bankrupt has sued from protecting their legal rights.” 949 F.2d
30. Therefore, as the California Action was initiated by Marks, and because the Trust
merely seeks to enforce its legal rights in a defensive manner, an injunction of the California
Action to the extent it is in violation of the Modified Confirmation Order does not violate section
II. Marks is Enjoined from Pursuing the Trust in the California Action by the
Modified Confirmation Order.
31. Marks is enjoined from pursuing the Trust or any of the Debtors in the California
Action pursuant to the Modified Confirmation Order and section 362(a) of the Bankruptcy Code.
all Persons and entities who have held, currently hold, or may hold
Claims against or interests in the Debtors or the Estates that arose
prior to the Modified Effective Date . . .are permanently enjoined
from (i) commencing or continuing in any manner, directly or
indirectly, any action or other proceeding against any Protected
Party or any property of any Protected Party.
9
130566.01600/40195182v.1
Modified Confirmation Order at ¶ 9. The term “Protected Party” is defined in the Modified Plan
as “any of the Liquidating Trustee (including in his capacity as Plan Administrator and sole
officer and director of the Debtors), the Estates, the Liquidating Trust, Reorganized Access
Lending, and the Plan Advisory Committee, each in their respective capacities”. Modified Plan
at 23.
33. Marks commenced the California Action against the Trust on April 16, 2011, after
the Modified Effective Date and after she commenced the Marks Bankruptcy. Moreover, the
claims asserted in the California Action against the Trust relate to the transactions and
allegations in connection with the 2006 Loan. As stated above, by April 2, 2007, the Debtors no
longer owned or serviced the 2006 Loan. Accordingly, any alleged actions taken by the Debtors
in connection with the 2006 Loan could only have occurred prior to the Petition Date. Finally, a
Final Decree in these cases has not been entered by the Court and the Liquidating Trust has not
been dissolved. Accordingly, the Trust requests an Order enjoining Marks from continuing the
10
130566.01600/40195182v.1
California Action in direct contravention to the Modified Confirmation Order and section 362(a)
III. The Global Relief Stay Order Does Not Permit Marks to Seek Relief Against the
Trust in the California Action
34. Moreover, the Global Relief Stay Order does not permit Marks to seek any relief
against the Trust in the California Action. The Global Relief Stay Order provides that:
Global Relief Stay Order, ¶ 2 (emphasis added). Accordingly, the Global Relief Stay Order
merely provides relief from the automatic stay for parties to exercise any applicable rights and
remedies against real property under non-bankruptcy law and not relief from the stay to permit
parties to seek monetary relief against the Trust (or other Protected Party) in contravention of the
35. However, as stated in the Marks Letter and Motion for Reconsideration, Marks
believes the Global Relief Stay Order grants relief from the automatic stay and Plan injunction
“to all parties with real property claims against New Century/Home 123…[, and the] allegations
of fraud could have been addressed in California…[as the] Trust has no protection of the
Automatic Stay as it related to my property, which is residential real estate.” Marks Letter at 1.
11
130566.01600/40195182v.1
In fact, even after the Court’s cautionary remarks at the Status Conference3, Marks’ maintains
that “failure to advise me of the 2008 blanket order for Relief from Stay prior to 2009 when I
filed my adversary complaint, is evidence of clear violation of the settlement agreement and the
bad faith acts of the trust as alleged.” Marks Email; see also Motion for Reconsideration at 2.
Accordingly, as clearly stated in the Marks Email, she has “absolutely no intention of releasing
36. While the Trust does not believe the Global Relief Stay Order is ambiguous, at
least one court, in dicta, has interpreted the Global Relief Stay Order to permit a state court
plaintiff to pursue its claims for injunctive and monetary relief against Debtor New Century
Mortgage Corporation. See Uy v. Wells Fargo Bank, N.A., et al., 2011 U.S. Dist. LEXIS, at *5
(D. Hawaii, March 28, 2011). As detailed above, in Uy, the court held that, in light of the Global
Relief Stay Order, “New Century’s bankruptcy has not prevented Plaintiff from serving New
Century with the Complaint or otherwise pursuing its claims against this defendant.” Id. Marks
references Uy as support for her unrelenting position that she may seek monetary relief against
the Trust in the California Action, and that the Trust’s failure to provide Marks with the Global
Relief Stay Order “resulted in SEVERAL years of litigating matters that should have been
resolved in 2007. The Trust FAILED to provide Marks with this information and as Marks
properly alleges, the settlement agreement was based upon fraudulent statement of the Trust and
37. Accordingly, in order to address Marks’ continuing claims against the Trust and
its counsel, the Trust requests an order from this Court clarifying the Global Relief Stay Order
3
At the Status Conference, the Court instructed Marks that “to the extent that you or anyone else takes actions in
violation of the plan injunction, there are consequences. Now, I don’t know whether what you have done did or
didn’t but, I will tell you, if its based upon an interpretation of the order that you’re referring to, you might wish
to consult counsel in that connection before proceeding further.” Status Conference Transcript, at 63, lines 4-
10. A true copy of the relevant portion of the Status Conference Transcript is attached hereto as Exhibit F.
12
130566.01600/40195182v.1
and affirming that such Order merely permits Marks to name the Trust and/or Debtors nominally
in the California Action for the purposes of removing the Debtors from the title to the Property,
and does not permit Marks to seek monetary relief against the Debtors or Trust in contravention
IV. The Settlement Agreement Prohibits Marks from Pursuing the California Action as
it Relates to the Trust
38. The Trust and Marks entered into the Settlement Agreement in full and final
satisfaction of all claims Marks had against the Trust and the Debtors. The Settlement
Agreement clearly provides that upon Marks’ receipt of a fully executed copy of the Settlement
Agreement and the Settlement Sum, Marks “releases, acquits and discharges the Debtors, the
Trust, the Trustee, the Plan Advisory Committee (the “PAC” as defined in the Plan), their
respective retained professionals, and their respective successors and assigns, of and from any
and all claims, damages, actions, suits, causes of action, rights, liens, demands, obligations
and/or liabilities.”
39. On or about August 24, 2010, Marks received a fully executed copy of the
Settlement Agreement, she received the $80,000.00 Settlement Sum from the Trust, she
negotiated the payment, and the Trust thus fulfilled its obligations under the Settlement
Agreement. Moreover, in the Memorandum supporting its denial of the Marks Requests, the
Court specifically held that Marks “has not proven that Trustee violated the terms of the
40. Accordingly, under the plain language of the valid and enforceable Settlement
Agreement, Marks released the Trust from any and all actions brought by Marks, including the
California Action.
13
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CONCLUSION
WHEREFORE, the Trust respectfully requests that the Court enter an order (I) enjoining
Marks from seeking affirmative relief against the Trust in the California Action, (II) clarifying
the terms of the Global Relief Stay Order, and (III) granting such other further relief as it deems
-and-
4
Given the Marks Bankruptcy, the Trust is not seeking sanctions at this time; however, the Trust reserves its
right to ask the Court to consider such action after it has been granted relief from the stay in the Marks
Bankruptcy.
14
130566.01600/40195182v.1
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
IN RE:
Chapter 11
NEW CENTURY TRS HOLDINGS, INC., et
al., a Delaware Corporation, Case No. 07-10416 (KJC)
Debtors.1
Re: D.I. ___
Upon the Motion of Alan M. Jacobs, in his capacity as Liquidating Trustee to the New
Century Liquidating Trust (the “Trust”), by and through his counsel, to (I) Enforce the Modified
Confirmation Order as it Relates to the Plan Injunction and (II) Clarify the Global Relief Stay
Order dated September 3, 2008 (the “Motion”); and it appearing that notice of the Motion was
proper and sufficient under the particular circumstances and that no other or further notice need
be given; and the Court having held a hearing to consider the Motion and any objections or
responses thereto; and any such objections being overruled by this Order; and this Court having
determined that granting the relief requested in the Motion is in the best interest of the Trust, its
1
The pre-confirmation Debtors were the following entities: New Century Financial Corporation (f/k/a New
Century REIT, Inc.), a Maryland corporation; New Century TRS Holdings, Inc. (f/k/a new Century Financial
Corporation), a Delaware corporation; New Century Mortgage Corporation (f/k/a JBE Mortgage) (d/b/a NCMC
Mortgage Corporate, New Century Corporation, New Century Mortgage Ventures, LLC), a California
corporation; NC Capital Corporation, a California corporation; Home123 Corporation (f/k/a The Anyloan
Corporation, 1800anyloan.com, Anyloan.com), a California corporation; New Century Credit Corporation (f/k/a
Worth Funding Incorporated), a California corporation; NC Asset Holding, L.P. (f/k/a NC Residual II
Corporation), a Delaware limited partnership; NC Residual III Corporation, a Delaware corporation; NC
Residual IV Corporation, a Delaware corporation; New Century R.E.O. Corp., a California corporation; New
Century R.E.O. II Corp., a California corporation; New Century R.E.O. III Corp., a California corporation; New
Century Mortgage Ventures, LLC (d/b/a Summit Resort Lending, Total Mortgage Resource, Select Mortgage
Group, Monticello Mortgage Services, Ad Astra Mortgage, Midwest Home Mortgage, TRATS Financial
Services, Elite Financial Services, Buyers Advantage Mortgage), a Delaware limited liability company; NC
Deltex, LLC, a Delaware limited liability company; NCoral, L.P., a Delaware limited partnership; and New
Century Warehouse Corporation, a California corporation.
130566.01600/40195186v.1
beneficiaries, creditors and interest holders; and after due deliberation thereon; and good and
A. Capitalized terms not otherwise defined in this Order shall have the
B. Marks was properly and timely served with a copy of the Motion and has
been afforded reasonable opportunity to respond or to be heard regarding the relief requested in
the Motion;
C. The relief requested in the Motion is in the best interests of the Trust, its
1. The relief sought in the Motion is GRANTED for the reasons set forth on
Complaint in the California Action seeking monetary damages against the Trust or the Debtors is
3. To the extent that Marks seeks monetary damages against the Trust or the
Debtors in the California Action, she is hereby enjoined from pursuing such relief under the
4. The Global Relief Stay Order was not intended to, nor does it, grant any
party relief from the automatic stay under section 362(a) of the Bankruptcy Code or the
provisions of the Modified Confirmation Order to proceed with direct actions against any of the
130566.01600/40195186v.1
Debtors, the Trust or the Liquidating Trustee; the Global Relief Stay Order was entered solely to
provide a mechanism for parties to name the Debtors nominally so as to commence foreclosure
5. The Global Relief Stay Order only permits Marks to name the Trust and/or
Debtors nominally in the California Action for the purposes of removing the Debtors from the
title to the Property, and does not permit Marks to seek monetary relief against the Debtors or
______________________________________
The Honorable Kevin J. Carey
Chief United States Bankruptcy Judge
130566.01600/40195186v.1