Page - 1Stephen R. CochellThe Cochell Law Firm, P.C.7026 Old Katy Road, Ste. 259Houston, Texas 77096Telephone: (713)980-8796Facsimile: (214) 980-1179srcochell@gmail.comCounsel for Jeffrey BaronIN THE UNITED STATES BANKRUPTCY COURTFOR THE NORTHERN DISTRICT OF TEXASDALLAS DIVISIONIn re: §§ Case No. 09-34784-SGJONDOVA LIMITED COMPANY, § (Chapter 11)§ Emergency Relief Requested§Debtor §JEFFREY BARON’S EMERGENCY MOTION FOR STAY PENDING APPEALTO THE HONORABLE JUDGE OF SAID COURT:Jeffrey Baron (“Baron”) Appellant, files this Motion for Stay Pending Appeal and wouldshow this Court as follows:1. On October 26, 2012 this Court entered its Order Granting Trustee’s Motion forAn Order Approving Proposed Auction Procedures [Document No. 878] (the “Order”) whichgranted the Trustee authority to sell certain property which presumably include two portfolios ofdomain names from Novo Point, L.L.C. and Quantec, L.L.C. to obtain funds for the Estate.2. Jeffrey Baron seeks a stay pending appeal before this court pursuant toBankruptcy Rule 8005. The criteria for a stay pursuant to Rule 8005 are well established. TheCase 09-34784-sgj11 Doc 897 Filed 11/06/12 Entered 11/06/12 13:40:38 DescMain Document Page 1 of 5MOTION OF JEFFREY BARON FOR STAY PENDING APPEAL Page - 2Movant must show: (1) likelihood of success on the merits, (2) irreparable injury if the stay is notgranted, (3) absence of substantial harm to the other parties from granting the stay and (4)service to the public interest from granting the stay. Hunt v. Bankers Trust Co., 799 F. 2d 1060,1067 (5thCir. 1986). With regard to the likelihood of success prong, a movant should only haveto present a substantial case on the merits. S.C. of Okaloosa, Inc., 2006 U.S. Dist. LEXIS 57187(W.D. La. 2006).3. As this Motion is filed, Mr. Baron has not yet filed his statement of issues onappeal. Without limiting the issues to be presented on appeal, there are substantial legalquestions presented including, but not limited to whether the Court has jurisdiction over thedomain name or whether the pending appeal of the receivership orders to the Fifth Circuit Courtof Appeals deprives this court of jurisdiction to sell the assets, whether the Bankruptcy Court hasjurisdiction over non-debtor assets (i.e. the domain name portfolios), and whether the court erredin granting a sale of assets without taking any evidence on the need for the auction, thecommercial reasonableness of the Stalking Horse bid of $4.1 million, the need for a fullvaluation of the assets prior to the auction, the marketing plan and adequacy of notice topotentially qualified bidders in the domain name market, the limitations on type and formatinformation provided to potential qualified bidders (excluding electronic information), theexcessive escrow amount of $500,000 required for a qualified bidder to be allowed inspection ofa list of 153,000 domain names and then be required to conduct due diligence within therelatively brief time period allowed between access to the domain name list and the November 9,2012 auction date, the severe loss that would be incurred if the domain name portfolios were soldin one “batch” versus sale as individual or smaller groups of domain names over a longer periodCase 09-34784-sgj11 Doc 897 Filed 11/06/12 Entered 11/06/12 13:40:38 DescMain Document Page 2 of 5MOTION OF JEFFREY BARON FOR STAY PENDING APPEAL Page - 3of time, there was no immediate need to sell the domain name portfolios, whether limitations onexpedited discovery deprived Jeffrey Baron of due process, the Stalking Horse bidder is not abona fide purchaser and has interfered with discovery in the instant case, and that the value of theportfolios would not decline if the auction were deferred to later date.4. The Court has authorized the sale of an asset which does not belong to the Estateand is the property of a non-debtor.5. Likelihood of Success. The Trustee did not present evidence at the hearing butsimply relied on the argument of counsel. The Trustee and the Receiver acknowledge that theNovo Point and Quantec portfolios are property of the Receiver, not the Estate. The Trustee didnot present evidence showing that it had a right to sell the property of a non-debtor, that such asale should be conducted outside the ordinary course of business, or that there was a need to sellthe entire group of more than 153,000 domain names this week for the Stalking Horse bidstarting at $4.1 million, rather than sell the domain names in three months, or over a period of anextended period of time to obtain the fair market value of the estate.6. Irreparable injury to Jeffrey Baron. As demonstrated in the record of hearingbefore the Court, and Jeffrey Baron’s objections to the Chapter 11 Plan and Motion to Strike orto Continue Auction (Document No. 895, filed under seal) Jeffrey Baron believes that the $4.1million Stalking bid grossly understates the value of the Novo Point and Quantec portfolios, thatthe value of the domain names will not decline over the short term period of six months or ayear. Should the Trustee sell the domain names and it is later determined, as Mr. Baron alleges,that the Trustee cannot sell the property of a non-debtor, that the auction procedures limitedand/or chilled the number of qualified bidders able to participate in the auction, and/or that theCase 09-34784-sgj11 Doc 897 Filed 11/06/12 Entered 11/06/12 13:40:38 DescMain Document Page 3 of 5MOTION OF JEFFREY BARON FOR STAY PENDING APPEAL Page - 4conduct of the Stalking Horse bidder interfered and compromised the judicial process leading upto the auction, Mr. Baron will have no remedy for his loss. Mr. Baron can only be made wholethrough the rightful return of the domain names to Novo Point and Quantec.7. No substantial harm to interested parties. For the same reasons as statedabove, the attorneys and the Estate have little risk of actual loss. Because the domain namesbelong to Novo Point and Quantec, the Estate will have suffered no loss as it did not have anyownership rights in the first instance. Because the value of the domain names will not decline inthe short term, no harm will occur to the Estate.8. Substantial national importance. This is a case of substantial nationalimportance. The court is attempting to seize and liquidate tens of millions of dollars in non-estate assets of a creditor without due process. The liquidation would substantially harm thecreditors of Novo Point and Quantec who will be left without recourse, as well as the taxingauthorities to whom two years past due taxes are due for both entities.WHEREFORE, PREMISES CONSIDERED, Jeffrey Baron prays that this Court granthis Motion for Stay Pending Appeal and for such other and further relief to which it may showhimself justly entitled. Request is respectfully made for a ruling on this motion by 9:00PM onNovember 6, 2012.Dated: November 6, 2012Very respectfully,/s/ Stephen R. CochellStephen R. CochellThe Cochell Law Firm, P.C.Texas Bar No. 240442557026 Old Katy Rd., Ste 259Case 09-34784-sgj11 Doc 897 Filed 11/06/12 Entered 11/06/12 13:40:38 DescMain Document Page 4 of 5MOTION OF JEFFREY BARON FOR STAY PENDING APPEAL Page - 5Houston, Texas 77096(713)980-8796 (phone)(713)980-1179 (facsimile)srcochell@cochellfirm.comCERTIFICATE OF SERVICEThis is to certify that, on November 6, 2012, a copy of the above was served on allcounsel of record through the Court’s ECF filing system.! ! ! ! ! !/s/ Stephen R. CochellStephen R. CochellCase 09-34784-sgj11 Doc 897 Filed 11/06/12 Entered 11/06/12 13:40:38 DescMain Document Page 5 of 5