Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_02-cv-01068/USCOURTS-cand-4_02-cv-01068-0/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

NORTHERN DISTRICT OF CALIFORNIA

JANVRIN HOLDINGS LTD, et

al.,

Plaintiff(s),

v.

DR. OLIVER HILSENRATH, et

al.,

Defendant(s). 

OLIVER HILSENRATH and HANA

HILSENRATH, 

Counterclaimants,

v.

JANVRIN HOLDINGS LTD.,et

al.,

Counterdefendants.

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No. C02-1068 CW (BZ)

ORDER SCHEDULING HEARING

IT IS HEREBY ORDERED that pursuant to the Court’s

discretion under Rule 55(b)(2) of the Federal Civil Rules of

Civil Procedure, a hearing on counterclaimants’ motion for

default judgment is set for Wednesday, May 2, 2007, at 10:00

a.m. in Courtroom G, 15th Floor, Federal Building, San

Case 4:02-cv-01068-CW Document 278 Filed 03/29/07 Page 1 of 3
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Francisco, California, 94102. 

 Counterclaimants should be prepared to clarify the legal

bases for their claims. A threshold issue in awarding a

default judgment is determining whether the well pleaded

factual allegations of the counterclaim establish

counterdefendants liability on a valid legal claim. The

difficulty here is that the counterclaim contains more

conclusory allegations than factual allegations. For example,

the only named counterdefendants are Janvrin Holdings Limited,

Crossgar Limited, and Ryburn Limited. They are described as

shell companies held in a discretionary trust of which Equity

Trust is trustee. The trust document is not attached and

there is no factual explanation of what counterclaimants mean

by shell company or discretionary trust. The bulk of the

factual allegations in the counterclaim are directed against

Equity Trust, which is not named as a counterdefendant. The

counterclaim does not explain factually on what basis the

shell companies can be held liable for the acts of the trustee

and the papers filed in support of the motion for default

judgment do not explain as a matter of law why such liability

exists. Accordingly, the Hilsenraths should be prepared at

this hearing to explain what facts alleged in the counterclaim 

establish each counterdefendant’s liability. 

Counterclaimants should also be prepared to prove their

damages by competent testimony or other admissible evidence. 

If they intend to prove damages by affidavits or declarations,

the affiant or declarant should have personal knowledge of all

matters to which she testifies. For all evidence, a proper

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foundation must be established. For an explanation of the

evidentiary requirements for proving damages in a default

case, the parties are encouraged to consult Chapter Six of

Civil Procedure Before Trial by William W. Schwarzer, A.

Wallace Tashima, and James M. Wagstaffe. 

 Counterdefendants should attend the hearing if they

contest the validity or amount of the claim. Seven days

before the hearing, on Wednesday, April 25, 2007,

counterclaimants shall file a declaration setting forth in

detail all steps taken to serve counterdefendants with notice

of this hearing. 

Dated: March 29, 2007

Bernard Zimmerman 

 United States Magistrate Judge

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