UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

In re:

SEVEN STARS ON THE HUDSON

CORPORATION, d/b/a ROCKIN’ JUMP

Case No. 20-19106 (SMG)

Debtor,

____________________________________

SEVEN STARS ON THE HUDSON

CORPORATION, d/b/a ROCKIN’ JUMP,

Adv. Pro. 19-01230 (SMG)

 Plaintiff-Appellant,

v.

APPELLANT’S 

MDG POWERLINE HOLDINGS, LLC DESIGNATION OF

AND XBK MANAGEMENT LLC, RECORD AND

d/b/a XTREME ACTION PARK, STATEMENT OF

ISSUES ON APPEAL

FROM BANKRUPTCY

Defendants-Appellees. COURT

___________________________________

1) Docket Entries from Adversary 

Proceeding

Adversary

Docket No. 

(19-01230)

Date Entered

In Adv. Pro.

Docket

Brief Description of the

Document or Transcript

28 11/26/2019 Transcript of proceedings dated 11/13/2019 re 

Order granting Defendant MDG Powerline 

Holdings’ motion to dismiss original 

complaint.

30 12/5/2019 First Amended Complaint with exhibits 1-15.

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 1 of 10
2

41 12/20/2019 Defendant MDG Powerline Holdings’ Second 

Motion to Dismiss First Amended Complaint.

47 1/29/2020 Plaintiff’s Opposition to MDG Powerline 

Holdings’ Motion to Dismiss First Amended 

Complaint.

51 3/12/2020 Defendant MDG Powerline Holdings’ Reply 

on Motion to Dismiss First Amended 

Complaint.

58 4/28/2020 Order re Denying MDG Powerline Holdings’ 

Motion to Dismiss First Amended Complaint.

61 5/12/2020 MDG Powerline Holdings Answer and 

Counterclaim.

62 5/12/2020 XBK Answer.

63 6/2/2020 Plaintiff’s Reply to MDG Powerline Holdings’ 

Counterclaim.

76 8/12/2020 Order setting status conference to determine if 

court has jurisdiction to retain adversary 

proceeding.

233 11/18/2021 Transcript of 8/25/2020 re Status Conference 

on issue of whether the court has jurisdiction to 

retain adversary proceeding.

78 8/31/2020 Order re briefing schedule to determine if court 

has jurisdiction over adversary proceeding in 

light of dismissal of Seven Stars I (19-17544).

86 11/2/2020 Initial Scheduling Order.

88 11/6/2020 Plaintiff’s Motion to Amend Complaint.

90 11/13/2020 Agreed Motion to extend time to complete 

Mediation.

92 11/20/2020 MDG Opposition to Plaintiff’s Motion to 

Amend Complaint.

102 12/4/2020 Plaintiff’s Reply on Motion to Amend 

Complaint.

120 1/15/2021 Agreed Motion to Extend Discovery Deadlines.

129 1/28/2021 Order granting Motion to Amend Complaint.

140 2/11/2021 Answer filed by MDG Powerline Holdings.

139 2//12/2021 Answer filed by XBK Management Holdings.

141 3/15/2021 Second Motion to Extend Discovery Deadlines.

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 2 of 10
3

142 3/17/2021 Second Agreed Scheduling Order.

252 2/9/2022 Transcript of Hearing on 4/7/2021 re Second 

Motion to Extend Discovery Deadline.

148 4/28/2021 Third Motion to Extend discovery deadline.

149 5/3/2021 Order extending fact discovery deadline to 

April 29, 2021.

150 5/3/2021 MDG Powerline Holdings’ Limited Objection 

to extension of the expert discovery deadline.

156 5/10/2021 Plaintiff’s Reply to MDG Powerline Holdings’ 

Limited Objection.

231 11/18/2021 Transcript of Hearing on 5/12/2021, on Motion 

to extend the expert discovery deadline.

158 5/13/2021 Order denying Motion to extend expert 

discovery deadline.

161 6/14/2021 MDG Powerline Holdings’ Motion for 

Summary Judgment.

162 6/14/2021 XBK Management’ Motion for Summary 

Judgment.

203 8/17/2021 Response to MDG Powerline Holdings’ 

Motion for Summary Judgment.

204 8/17/2021 Response to XBK Management Holdings’ 

Motion for Summary Judgment.

205 8/24/2021 MDG Powerline Holdings’ Motion to Strike 

Sham Declaration and for Sanctions

207 8/24/2021 Reply of MDG Powerline Holdings’ Motion 

for Summary Judgment.

208 8/24/2021 Reply of XBK Management’ Motion for 

Summary Judgment.

216 9/10/2021 Plaintiff’s Response to MDG Powerline 

Holdings’ Motion to Strike Sham Affidavit and 

for Sanctions.

218 9/13/2021 Notice of Supplemental Authority re FDUTPA.

220 9/24/2021 Reply of MDG Powerline Holdings’ Motion to 

Strike and for Sanctions.

221 9/27/2021 XBK Management’s Notice of Joinder in MDG 

Powerline Holdings’ Motion to Strike and for 

Sanctions.

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 3 of 10
4

234 1/28/2022 Memorandum Opinion granting Defendants’ 

Motions for Summary Judgment and granting 

MDG Powerline Holdings’ Motion to Strike 

Sham Declaration and for Sanctions.

236 1/28/2022 Order granting and denying in part MDG 

Powerline Holdings’ Motion to Strike Sham 

Declaration and for Sanctions.

240 1/31/2022 Order Granting Motions of MDG Powerline 

Holdings and XBK Management’s respective 

Motions for Summary Judgment.

241 1/31/2022 Final Judgment in favor of MDG Powerline 

Holdings and XBK Management.

251 2/8/2022 Plaintiff’s Notice of Appeal.

257 2/14/2022 Plaintiff’s Amended Notice of Appeal.

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 4 of 10
5

2) Relevant Docket Entries from Bankruptcy Case

19-17544 (“Seven Stars I”).

Bankruptcy

Case No. 

(19-17544)

Docket Entries

Date Entered

In Bankr.

Docket

Brief Description of the

Document or Transcript

193 8/7/2020 Order dismissing the case.

218 11/18/2021 Transcript of 8/25/2020 hearing motion to stay 

pending appeal.

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 5 of 10
6

3) Relevant Docket Entries from Bankruptcy Case

20-19106 (“Seven Stars II”).

Bankruptcy

Case No. 

(20-19106)

Docket Entries

Date Entered

In Bankr.

Docket

Brief Description of the

Document or Transcript

109 1/11/2021 Transcript of Hearing held on 8/27/2020 re 

Emergency Hearing on Motion to Continue 

Automatic Stay in Seven Stars II.

122 1/28/2021 Motion to permit Debtor to enter Term Sheet for 

Litigation Funding.

136 2/26/2021 Order granting Motion re Hearing on Motion 

permitting Debtor to enter into a Term Sheet for 

Litigation Funding.

238 2/10/2022 Transcript of Hearing held on 2/24/2021 re 

Motion permitting Debtor to enter into Term 

Sheet for Litigation Funding.

136 2/26/2021 Order granting motion to allow Debtor into 

Term Sheet re Litigation Funding.

186 4/6/2021 Motion to enter into agreement for Litigation 

Funding.

190 4/9/2021 Amended Motion to enter into agreement for 

Litigation Funding.

191 4/12/2021 Objection by MDG Powerline Holdings’ 

Objection to Litigation Funding.

192 4/14/2021 Response by United States Trustee to MDG 

Powerline Holdings’ Objection to Motion to 

allow Debtor to enter into agreement for 

Litigation Funding.

239 2/10/2022 Transcript of hearing held on 4/14/2021 re 

hearing on motion seeking to allow Debtor to 

enter into litigation funding agreement.

193 4/19/2021 Order granting motion allowing Debtor to enter 

into agreement for Litigation Funding.

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 6 of 10
7

STATEMENT OF ISSUES

1) Did the bankruptcy court err in determining that there was no genuine issue 

of material fact and granting summary judgment in favor of Defendants? 

2) Did the bankruptcy court err by determining that lost profits was the only 

measure of damages for a business that lost its franchise due to the actions of the 

Defendants?

3) Did the bankruptcy court err in excluding any consideration of Plaintiff’s 

profit and loss statements?

4) Did the bankruptcy court err by determining that Plaintiff presented no 

evidence of damages resulting from Defendants’ actions notwithstanding that 

Defendants were in possession of Plaintiff’s financials which showed losses?

5) Did the bankruptcy court impermissibly weigh the evidence and make 

credibility determinations?

6) Did the bankruptcy court err by striking the Declaration of Eddy ManzoBerding as a Sham Declaration?

7) Did the bankruptcy court err by striking the attachments to Eddy ManzoBerding’s Declaration including without limitation the photographic evidence 

demonstrating the harm caused by Defendants’ actions?

8) Did the bankruptcy court err in excluding expert testimony under Fed. R. Civ. 

P. 37(c)(1)?

9) Did the bankruptcy court err in denying Plaintiff’s motion to extend the expert 

discovery deadline and to designate an expert witness under Fed. R. Civ. P. 37(c)(1) 

on the ground that Plaintiff’s alleged failure to designate an expert by April 6, 2021,

was neither substantially justified nor harmless?

10) Did the bankruptcy court err by failing to consider all appropriate factors in 

assessing whether there was substantial justification for the failure to disclose on 

April 6, 2021, or whether the failure to disclose was harmless?

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 7 of 10
8

11) Did the bankruptcy court err in denying Plaintiff’s motion to extend the expert 

discovery deadline?

12) Did the bankruptcy court err in finding that Plaintiff failed to establish good 

cause by not designating an expert by April 6, 2021?

13) Did the bankruptcy court err in applying the harsh sanction of exclusion of an 

expert witness on the issue of economic damages?

14) Did the bankruptcy court err in ordering the exclusion of an expert witness in 

the absence of any showing of prejudice to Defendants?

15) Did the bankruptcy court err in finding that a lack of funds to retain an expert 

did not support a finding of good cause?

16) Does the record reflect any flagrant and willful behavior on the part of 

Plaintiff justifying exclusion of evidence?

17) Did the bankruptcy court err in not considering a lesser sanction than

exclusion under Rule 37(c)(1)?

18) Did the bankruptcy court err in failing to extend the expert discovery deadline 

so that the case could be fully considered on the merits?

Dated: February 22, 2022

Respectfully submitted,

LAW OFFICE OF KATHLEEN A. DALY, P.A.

______/s/ Kathleen A. Daly_____

Kathleen A. Daly

Fla. Bar. No. 112438

515 N. Flagler Dr., Ste. P300

West Palm Beach, FL 33401

Tel: (561) 293-8514/(917) 301-2437

Fax No. (800) 395-8692

Email: kdaly@kadalylaw.com

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 8 of 10
9

Attorneys for the Appellant-Plaintiff-Debtor

Seven Stars on the Hudson Corporation

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 9 of 10
10

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on February 22, 2022, a true and correct copy of 

the forgoing was served via CM/ECF on the parties and firms listed below.

By: /s/ Kathleen A. Daly

Kathleen A. Daly

FL Bar No. 112438

Service List

Jay M. Sakalo, Esq.

BILZIN SUMBERG BAENA PRICE & AXELROD LLP

1450 Brickell Avenue, 23rd Floor

Miami, FL 33131

Tel: (305) 374-7580

Email: jsakalo@bilzin.com

Scott A. Hiaasen, Esq.

COFFEY BURLINGTON, P.L.

2601 South Bayshore Drive, Penthouse One

Miami, FL 33133

Tel: (305) 858-2900

Email: shiaasen@coffeyburlington.com

Attorneys for MDG Powerline Holdings, LLC

Kai Jacobs, Esq.

KAI JACOBS, PA

2222 Ponce de Leon Blvd 

Coral Gables, FL 33134

Tel: (305) 768-9846

Email: kj@sflblg.com

Attorneys for XBK Management LLC

Case 19-01230-SMG Doc 268 Filed 02/22/22 Page 10 of 10