Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_10-cv-02735/USCOURTS-cand-3_10-cv-02735-0/pdf.json

Nature of Suit Code: 160
Nature of Suit: Stockholder's Suits
Cause of Action: 28:1332 Diversity-Stockholders Suits

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United States District Court

For the Northern District of California

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1

 (See Administrative Motion to Consider Whether Cases Should be Related, hereafter,

“Motion,” CV 10-002735-JF Docket Item No. 55.)

United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

SAN JOSE DIVISION

Sharon Hodges, et al.,

Plaintiffs,

 v.

Akeena Solar, Inc., et al.,

Defendants. /

NO. CV 09-02147 JW 

NO. CV 10-02735 JF 

ORDER DENYING MOTION TO RELATE

CASES

Evelyn Sabbag, et al.,

Plaintiffs,

 v.

Barry Cinnamon, et al.,

Defendants. /

Presently before the Court is Plaintiffs’ Motion to Consider Whether Cases Should be

Related.1

 Plaintiffs seek the Court’s determination as to whether Evelyn Sabbag, et al. v. Barry

Cinnamon, et al., Case No. CV 10-02735-JF (“Second Action”), should be related to Sharon

Hodges, et al. v. Akeena Solar, Inc., et al., Case No. CV 09-02147-JW (“First Action”). Plaintiffs

contend that both cases concern substantially the same parties, transaction, and events. (Motion at

1.) To date, Defendants have not filed any opposition.

Case 3:10-cv-02735-MMC Document 5 Filed 07/09/10 Page 1 of 3
United States District Court

For the Northern District of California

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2

 (Compare Verified Shareholder Derivative Complaint for Breach for Fiduciary Duty,

Unjust Enrichment, Waste of Corporate Assets, and Violations of California Code, CV 10-02735-

JW Docket Item No.1 with Class Action Complaint, CV 10-02509-JF Docket Item No. 1.)

2

Civil Local Rule 3-12(a) provides:

An action is related to another action when:

(1) The actions concern substantially the same parties, property, transaction or event; and 

(2) It appears likely that there will be an unduly burdensome duplication of labor and

expense or conflicting results if the cases are conducted before different judges.

Here, the Court finds that although the two actions concern substantially the same transaction

and events, the legal claims, named defendants, and procedural posture are different.2 The First

Action is a securities class action alleging violations of the federal securities laws while the Second

Action is a shareholder derivative suit alleging a breach of fiduciary duty as well as other state law

claims. The First Action names Akeena Solar, Inc., Barry Cinnamon, and Gary Effren as

Defendants, while Akeena Solar is a nominal Plaintiff in the Second Action, with Cinnamon, Effren,

Edward Roffman, Jon Witkin, George Lauor, and David Wallace named as Defendants. Finally, the

First Action is further along procedurally, since it has already survived a Motion to Dismiss and is

moving toward class certification. The Second Action was only recently filed on June 22, 2010. In

light of the differences in legal claims, defendants, and procedural posture of the two actions, the

Court finds that there is no risk of “an unduly burdensome duplication of labor and expense or

conflicting results if the cases are conducted before different judges.” Thus, the Court finds that the

cases are not related within the meaning of Rule 3-12(a).

Accordingly, the Court DENIES Plaintiffs’ Motion.

Dated: July 9, 2010 

JAMES WARE

United States District Judge

Case 3:10-cv-02735-MMC Document 5 Filed 07/09/10 Page 2 of 3
United States District Court

For the Northern District of California

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THIS IS TO CERTIFY THAT COPIES OF THIS ORDER HAVE BEEN DELIVERED TO:

Marc M. Umeda mumeda@robbinsumeda.com

George C. Aguilar gaguilar@robbinsumeda.com

Ashley R. Palmer apalmer@robbinsumeda.com

Dated: July 9, 2010 Richard W. Wieking, Clerk

By: /s/ JW Chambers 

Elizabeth Garcia

Courtroom Deputy

Case 3:10-cv-02735-MMC Document 5 Filed 07/09/10 Page 3 of 3