UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

ALEXANDRIA DIVISION

__________________________________________ 

 ) 

In re: ) 

 ) Case No. 20-12470-KHK

ClubX, LLC, ) 

 ) Chapter 7 Proceeding 

 Debtor. ) 

_________________________________________ ) 

WOLRDGATE CENTRE OWNER, LLC’S RESPONSE TO

TRUSTEE’S MOTION REQUESTING JUDICIAL MEDIATION

Worldgate Centre Owner, LLC (“Worldgate”) respectfully submits this response to the 

Trustee’s Motion Requesting Judicial Administration (the “Motion”), and asserts as follows: 

1. Worldgate generally supports the Motion and agrees that judicial mediation may be 

appropriate to facilitate negotiations for a resolution of the Trustee Claims and Claim Objection if 

the parties have sufficient information about the claims of the other and the claims of the Trustee. 

2. However, currently the parties are negotiating an agreement for all parties to the 

mediation to exchange information and documents prior to the mediation. Without it, mediation 

may be of little value. To date, Worldgate has not only produced more than 17,000 pages of 

discovery at the Trustee’s request (and Worldgate’s expense) but has assisted the Trustee by 

providing it with the Rule 2004 Discovery it conducted in this matter (again at Worldgate’s 

expense) over the objection of Holdings. See ECF 60, ECF 61. 

3. Worldgate is amenable to the Trustee sharing with Holdings all the documents that 

Worldgate has and will produce to the Trustee in response to a Joint Stipulation on Discovery, 

subject to an appropriate protective order, and with Worldgate likewise receiving all relevant 

discovery produced by Holdings and third parties that has been or will be requested by the Trustee 

and Worldgate. In fact, Worldgate discussed this exact issue with Holdings and the Trustee on 

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Friday, October 13, 2023 and Holdings did not give Worldgate any advance notice that Holdings 

intended to file the response that it filed later in the same day, which suggests that Worldgate is 

withholding documents. In reality, Friday, October 13, 2023, was the first time that Holdings 

particularized the specific documents it wished to receive from Worldgate in connection with 

mediation efforts. However, because Holdings waited until the very last minute to specify its 

conditions to mediation, Worldgate needs more time to ensure that it can comply with Holdings’ 

requests, including its demand for Worldgate to review and produce six years of internal 

communications. 

4. Worldgate remains hopeful that the parties can mediate and reach a stipulation 

regarding documents, but it is unlikely that the parties will have such a stipulation in place by the 

hearing on this motion. Accordingly, Worldgate respectfully requests that the hearing on the 

Trustee’s Motion be continued pending agreement on the parameters of a Joint Stipulation for 

Discovery. 

Dated: October 16, 2023 Respectfully submitted,

/s/ Stephen K. Gallagher 

Stephen K. Gallagher (VSB No. 38085) 

Nicholas M. DePalma (VSB No. 72886) 

VENABLE LLP

1850 Towers Crescent Plaza, Suite 400 

Tysons, VA 22182 

Phone: (703) 905-1455 

Fax: (703) 821-8949 

nmdepalma@venable.com

skgallagher@venable.com

Counsel to Worldgate Centre Owner, LLC 

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CERTIFICATE OF SERVICE

I hereby certify that on this 16th day of October 2023, a copy of the foregoing Notice of 

Appearance was served via this court’s ECF system on those parties listed to receive such notice 

and via first class United States mail, postage prepaid, on the following parties: 

Jennifer J. West, Esquire, Trustee (VSB #47522) 

Robert H. Chappell, III, Esquire (VSB #31698) 

Christopher A. Hurley, Esquire (VSB #93575) 

SPOTTS FAIN PC

411 East Franklin Street, Suite 600 

Richmond, Virginia 23219 

Telephone: (804) 697-2000 

Facsimile: (804) 697-2100 

Email: rchappell@spottsfain.com 

jwest@spottsfain.com 

churley@spottsfain.com 

Counsel for Jennifer J. West, Chapter 7 Trustee 

Steven B. Ramsdell, Esq. 

TYLER, BARTL & RAMSDELL, PLC 

300 N. Washington Street 

Suite 310 

Alexandria, VA 22314 

Debtor’s Counsel 

Bradford F. Englander, Esquire 

WHITEFORD TAYLOR & PRESTON, LLP

3190 Fairview Park Drive, Suite 800 

Falls Church, Virginia 22042 

Telephone: (703) 280-9081 

Facsimile: (703) 280-3370 

Email: benglander@wtplaw.com 

Co-Counsel to Sport & Health Holdings, LLC 

C. Bryan Wilson, Esquire 

WILLIAMS & CONNOLLY LLP

680 Maine Avenue, S.W. 

Washington, D.C. 20024 

Telephone: (202) 434-5000 

Email: bwilson@wc.com

Co-Counsel to Sport & Health Holdings, LLC 

/s/ Stephen K. Gallagher 

Stephen K. Gallagher 

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