Motion to Stay or Vacate Injunction & Civil Lockdown of Baron Doc 591

 
 
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IN THE UNITED STATES DISTRICT COURT 
FOR THE NORTHERN DISTRICT OF TEXAS 
DALLAS DIVISION 
 
NETSPHERE, INC.,       § 
MANILA INDUSTRIES, INC., and   § 
MUNISH KRISHAN,       §  
Plaintiffs.                     § 
  § Civil Action No. 3-09CV0988-F 
  v.   §   
  §  
JEFFREY BARON, and      §   
ONDOVA LIMITED COMPANY,    § 
  Defendants.          § 
 
MOTION FOR LEAVE TO FILE: MOTION TO STAY OR VACATE 
INJUNCTION AND CIVIL LOCKDOWN OF JEFF BARON  
 
TO THE HONORABLE JUDGE ROYAL FURGESON: 
COMES  NOW  JEFF  BARON,  and  moves  this  Court  to  grant  leave  to  file 
the  following  motion  to  stay  or  vacate  the  injunction  and  civil  lockdown  of  Jeff 
Baron  pending  appeal  because  there  is  no  reasonable  basis  to  keep  the 
injunction  in  place  for  even  one  more  day,  especially  in  light  of  the  procedural 
posture of the case. 
1.  Since November 2010, Jeff has been ordered [Doc 130]: (1) not to transact any 
business; (2) that he may not keep any income he earns; (3) that he may not cash any 
checks  he  receives; (4)  that  he  may  not  use  any  credit  cards;  (5)  that  he  may  not 
incur  any  debts;  (6)  that  he  may  not  remove  any  of  his  property  from  the  Northern 
District  of  Texas;    etc.    Without  trial,    Jeff  has  been  held  by  this  Court  in  civil 
lockdown for over six months.     
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2.  On March 2, 2011, this Court entered an Order [Doc 338], advising that the 
primary  purpose  of  continuing  the  receivership  was  to  “ensure  that  the  unpaid 
attorneys claims against him could be resolved so that the bankruptcy action could 
be closed
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”.   That matter was appealed on May 18, 2011. 
3.  On May 24, 2011, this Court entered an Order [Doc 586] advising the parties 
that  this  Court  is  stayed  from  taking  further  action  in  the  matters  involved  in  the 
appeals taken on May 18, 2011. 
4.  Accordingly,  in  light  of  the  current  procedural  posture  of  this  case,  there  is 
no reasonable basis to continue the lock-down injunction against Jeff.  
5.  For further cause, the argument of Mr. Baron’s appellate briefing is attached 
hereto as Exhibit “A” and incorporated herein by reference. 
WHEREFORE,  Jeff Baron requests the Court to immediately stay or vacate 
the  injunctions  ordered  [Doc  130]  against  Jeff  Baron  pending  resolution  of  the 
issues on appeal to the Fifth Circuit.  
  
                                                
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 The bankruptcy trustee has filed an adversary action in the bankruptcy court against Mr. Emke 
regarding “servers.com”.   The filing  of  the new adversary action and the expected counterclaim 
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).  
  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. 
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Respectfully submitted, 
 
  /s/ Gary N. Schepps 
Gary N. Schepps 
Texas State Bar No. 00791608 
Drawer 670804 
Dallas, Texas 75367 
(214) 210-5940 - Telephone 
(214) 347-4031 - Facsimile 
E-mail: legal@schepps.net 
COUNSEL FOR JEFF BARON 
 
 
CERTIFICATE OF SERVICE 
This is to certify that this document was served this day on all parties who receive 
notification through the Court’s electronic filing system. 
CERTIFIED BY:  /s/ Gary N. Schepps 
            Gary N. Schepps 
 
 
CERTIFICATE OF CONFERENCE 
This is to certify that the undersigned conferred with counsel for: (1) Mr. Vogel by 
email  and the receiver takes no position and does  not oppose  the  relief requested, 
and (2) Mr. Sherman by email and they oppose.   
CERTIFIED BY:  /s/ Gary N. Schepps 
            Gary N. Schepps 
 
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