Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_02-cv-01068/USCOURTS-cand-4_02-cv-01068-2/pdf.json

Nature of Suit Code: 850
Nature of Suit: Securities, Commodities, Exchange
Cause of Action: 15:78m(a) Securities Exchange Act

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United States District Court

For the Northern District of California

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

JANVRIN HOLDINGS LIMITED, CROSSGAR

LIMITED, and RYBURN LIMITED,

Plaintiffs,

v.

DR. OLIVER HILSENRATH,

Defendant.

 /

DR. OLIVER HILSENRATH and HANA

HILSENRATH,

Counterclaimants,

v.

JANVRIN HOLDINGS LIMITED, CROSSGAR

LIMITED, and RYBURN LIMITED,

Counterdefendants.

 /

No. C 02-1068 CW

AMENDED ORDER

ADOPTING IN PART AND

MODIFYING IN PART

MAGISTRATE JUDGE'S

REPORT AND

RECOMMENDATION RE:

COUNTERCLAIMANTS'

MOTION FOR ENTRY OF

DEFAULT JUDGMENT

On May 18, 2007, Magistrate Judge Bernard Zimmerman submitted

his Report and Recommendation regarding Counterclaimants' motion

for default judgment. No opposition to the Report and

Recommendation has been filed. 

Case 4:02-cv-01068-CW Document 303 Filed 07/26/07 Page 1 of 3
United States District Court

For the Northern District of California

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Having reviewed the Report and Recommendation, and good cause

appearing therefor:

The Court adopts the Report and Recommendation except for the

amount of damages. Magistrate Judge Zimmerman recommends awarding

a total of $10,182,500 in damages based on the following: $3

million in cash paid by Oliver Hilsenrath to Counterdefendants in

settlement of the underlying lawsuit; 750,000 options of U.S.

Wireless Corporation stock valued at $2,182,500 granted to

Counterdefendants in settlement of the underlying lawsuit; $2.5

million in general damages to Oliver Hilsenrath, representing the

monetary value of the loss of his job and the large portion of his

wealth that he attributes to Counterdefendants' acts; and $2.5

million in damages for emotional distress to Hana Hilsenrath. 

After reviewing the Hilsenraths' declarations that Magistrate

Judge Zimmerman considered, the Court awards a total of $5,282,500. 

The Court finds that Oliver Hilsenrath fails to plead or otherwise

provide evidence of a causal connection between Counterdefendants'

tortious acts and the loss of his job and wealth. Similarly, the

Court finds that Hana Hilsenrath fails to plead or otherwise

provide evidence of a causal connection between Counterdefendants'

tortious acts and her emotional distress. Both sets of damages can

also be attributed to other difficulties, including Oliver

Hilsenrath's concurrent criminal prosecution and his guilty plea to

securities fraud and tax evasion. The Court awards Oliver

Hilsenrath $50,000 in general damages and Hana Hilsenrath $50,000

in damages for emotional distress. Prejudgment interest on the

$5,182,500 in damages related to the settlement of the underlying

Case 4:02-cv-01068-CW Document 303 Filed 07/26/07 Page 2 of 3
United States District Court

For the Northern District of California

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lawsuit is awarded at a rate of seven percent per annum from the

date the settlement was paid through the date of entry of judgment. 

See Cal. Const., art. XV, § 1; Cal. Civil Code § 3287(a).

The Hilsenraths have also filed a "Clarification as to the

Report and Recommendation" in which they state their "wish to

maintain the option" to bring a motion to join Equity Trust as a

Counterdefendant in the future. However, the Court has already

denied the Hilsenraths' motion to join Equity Trust. Absent

grounds warranting reconsideration and leave of the Court as

required by Civil Local Rule 7-9, Counterclaimants may not renew a

motion which has already been denied. 

IT IS SO ORDERED.

7/26/07

Dated: ________________________ 

CLAUDIA WILKEN

United States District Judge

Case 4:02-cv-01068-CW Document 303 Filed 07/26/07 Page 3 of 3