-2-
3. The bankruptcy trustee has filed an adversary action in the bankruptcy court
against Mr. Emke regarding “servers.com”.
1
The filing of the new adversary
action and the shortly expected counterclaims will prevent the closing and
resolution of the bankruptcy case for some time to come—until discovery is
completed and a trial is held on that adversary action. Resolution of the attorneys
fees claims will therefore not allow the immediate closing of the bankruptcy case
(assuming arguendo the claims would otherwise have an impact on the closing of
the bankruptcy case).
2
4. Accordingly, in light of the current procedural posture of this case, there is
no reasonable basis to continue the receivership.
5. This Court may take security for staying the receivership, if this Court
determines such security appropriate.
6. The claims currently listed total $853,000.00 [Doc 562].
7. Jeff has $630,000.00 of his money held in escrow in the bankruptcy court,
1
Note should be taken that Mr. Emke had been represented by Mr. Vogel’s law firm when he
sued Ondova with respect to “servers.com”, and that dispute was still pending when this Court
decided to appoint Mr. Vogel as special master in this case. The twisted interrelations between
Vogel, Gardere, Ondova, Baron, and Emke have become untenable with respect to Mr.
Sherman’s latest litigation. Because of the clear conflict of interest involved, it is not possible
for Vogel to properly act to defend Jeff Baron’s interests in the bankruptcy court with respect to
Sherman’s new litigation over the prior “servers.com” litigation. Since Gardere represented
Emke against Ondova and Jeff Baron, Gardere and Vogel cannot now represent any party’s
interest against Emke relating to the very same matter.
2
Notably, since November 2010 Jeff Baron has been 100% neutralized in the bankruptcy
court, and the bankruptcy court recognizes no rights in that court on Mr. Baron’s behalf
recognizing only the receiver as holding all of Mr. Baron’s rights in that court. Yet, in the more
than 6 months that have passed, Mr. Sherman has not closed down the bankruptcy, and has
instead made great pains to expand the bankruptcy and prevent it from being closed, for example
by recently initiating an adversary action against Mr. Emke.
Case 3:09-cv-00988-F Document 590 Filed 05/31/11 Page 2 of 8 PageID 24393