Peter Vogel Pleading re Why Novo Point and Quantec LLCs Should Not be Returned to Baron

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF TEXAS
DALLAS DIVISION
NETSPHERE, INC.,
MANILA INDUSTRIES, INC., AND
MUNISH KRISHAN
PLAINTIFFS,
V.
JEFFREY BARON AND ONDOVA LIMITED
COMPANY,
DEFENDANTS.
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CIVIL ACTION NO. 3:09-CV-0988-F
RECEIVER’S RESPONSE TO SHOW CAUSE ORDER [DOCKET NO. 1139]
On January 3, 2013, this Court ordered the Receiver to show cause why Novo Point LLC
and Quantec LLC should not be immediately returned to Jeffrey Baron. On December 18, 2012,
an involuntary chapter 7 bankruptcy case was commenced against Jeffrey Baron. This Court has
solicited requests for receivership wind-down plan to be filed by January 15, 2013. On January
2, 2013, the Receiver and others filed Petitions for Rehearing in the Fifth Circuit, which among
other things causes the mandate to not issue. On January 9, 2013, the Bankruptcy Court entered
a sua sponte order [Bankruptcy Case 12-37921, Docket no. 25] apparently exercising jurisdiction
over the payment of domain name renewals—a function connected solely with the Receiver’s
operations of Novo Point and Quantec, and cautioned about the possible application of Sections
362 and 543 of the Bankruptcy Code generally to all receivership assets. At various times in late
December 2012, after the filing of the involuntary bankruptcy case against Mr. Baron, this Court
and the Fifth Circuit cautioned that the mandate had not issued on the appellate opinion vacating
the receivership, and that in the interim the receivership and the Receiver were to continue
Case 3:09-cv-00988-L   Document 1167   Filed 01/10/13    Page 1 of 2   PageID 62276Case 3:13-cv-03461-O   Document 47-3   Filed 12/07/13    Page 1 of 2   PageID 7943
Exhibit C

maintaining all receivership assets—implicitly including those of Novo Point and Quantec—to
maintain the status quo.
The Receiver recommends the Court to consider return of Novo Point and Quantec to Mr.
Baron solely in the context of the soon to be submitted receivership wind-down plan and in the
context of further proceedings in Mr. Baron’s personal involuntary chapter 7 bankruptcy case.
Respectfully submitted,
DYKEMA GOSSETT PLLC
By: /s/ David J. Schenck
David J. Schenck
State Bar No. 17736870
Jeffrey R. Fine
State Bar No. 07008410
Christopher D. Kratovil
State Bar No. 24027427
1717 Main Street, Suite 4000
Dallas, Texas 75201
(214) 462-6455
(214) 462-6401 (Telecopier)
ATTORNEYS FOR THE RECEIVER, PETER S.
VOGEL
CERTIFICATE OF SERVICE
I hereby certify that a true and correct copy of the foregoing document was served via the
Court’s ECF system on all counsel of record on January 10, 2013.
By: /s/ David J. Schenck
David J. Schenck
Case 3:09-cv-00988-L   Document 1167   Filed 01/10/13    Page 2 of 2   PageID 62277Case 3:13-cv-03461-O   Document 47-3   Filed 12/07/13    Page 2 of 2   PageID 7944