UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

BROWARD DIVISION

In re:

SEVEN STARS ON THE HUDSON

CORPORATION, d/b/a ROCKIN’ JUMP Case 20-19106 SMG

Chapter 11

Debtor,

____________________________________/

SEVEN STARS ON THE HUDSON Adversary Proceeding

CORPORATION, d/b/a ROCKIN’ JUMP, No. 19-01230

 Plaintiff

v.

 

MDG POWERLINE HOLDINGS, LLC

AND XBK MANAGEMENT LLC,

d/b/a XTREME ACTION PARK,

Defendants.

___________________________________

 

MOTION FOR LEAVE TO SERVE 

AND FILE A THIRD AMENDED COMPLAINT

COMES NOW the Debtor, SEVEN STARS ON THE HUDSON CORP., by and through 

undersigned counsel, and files this Motion seeking leave to serve and file its second amended 

complaint, and states:

Background

1. The Debtor previously filed a voluntary petition under chapter 11 on June 5, 2019.

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2. In the course of that case, the Debtor filed an adversary proceeding Case No. 19-01230.

3. The previous bankruptcy case was dismissed on August 7, 2020.

4. The Debtor filed the instant case on August 24, 2020.

5. The adversary proceeding remains pending. 

6. In its second amended complaint filed on January 28, 2021, the Debtor alleged six causes 

of action against the Defendant, MDG Powerline Holdings LLC (the “Landlord”) and XBK 

Management LLC d/b/a Xtreme Action Park (“Xtreme”) including (i) Breach of Contract by 

Landlord); (ii) Breach of the Covenant of Good Faith and Fair Dealing by Landlord; (iii) violation 

of Florida’s Deceptive and Unfair Trade Practices Act [FDUTPA] by Landlord; (iv) violation of 

FDUTPA by Xtreme, (v) Tortious Interference by Xtreme and (vi) Tortious Interference by 

Landlord and Xtreme with respect to the franchise agreement.

7. The Landlord and Xtreme answered the Second Amended Complaint on February 12, 

2021.

8. Discovery closed on May 14, 2021 per order of this Court issued on May 13, 2021.

9. Plaintiff has been operating its stand-alone trampoline park having lost its franchise as of 

April 2020.

10. The proposed Third Amended Complaint seeks to add new facts concerning interference 

with its signage rights by Defendants. These new facts arose after the expiration of the deadline 

for amendment of the Pleadings set forth in the most recent scheduling order.

11. The proposed Third Amended Complaint is annexed as Exhibit A.

Legal Argument

12. Under the Federal Rules of Civil Procedure, amendments are permitted “when justice so 

requires.” Fed. R. Civ. P. 15(a)(2). Plaintiff understands however that when the amendment is 

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sought beyond the deadline for amendments set forth in the scheduling order —which in this case 

was November 6, 2020— Plaintiff is required to 

demonstrate good cause why leave to amend the complaint should be granted. “Good cause 

exists when “evidence supporting the proposed amendment would not have been discovered in the 

exercise of reasonable diligence until after the amendment deadline passed.” Rolle v. Branch 

Banking and Trust Company, 2014 WL 11638588 *3 (S.D. Fla. May 27, 2014)(citation omitted).

13. The circumstances giving rise to this amendment arose after the expiration of the deadline to 

amend. Indeed, the Defendants’ refusal to permit the signage arose only this past summer when 

Plaintiff contacted both the Landlord and Xtreme representatives and requested approval. Mr. 

Goldfarb, who apparently acts on behalf of either the Landlord and/or Xtreme when it suits 

Defendants’ purposes, has denied Plaintiff’s request on the flimsiest of grounds – that it does not 

conform to building standards. However, those standards have never been defined. Moreover, his 

further excuse that the colors on the existing steel box mounted on the façade are too close to those 

of Rockin’ Jump is equally feeble because Rockin’ Jump did not require Plaintiff did re-paint using 

different colors when the Franchise was terminated. See Bankruptcy Case 19-17544, DE # 152, pg. 

10, ¶ 7. The only requirement of the Franchisor upon termination was that its signs and marks be 

removed. See id.

14. In addition, the arguments raised by Goldfarb now in terms of rejecting Plaintiff’s proposed 

outside signage is counter to Goldfarb’s deposition testimony in which he repeatedly referred to 

the existing steel boxes as a “blank canvas” just waiting to be used by Plaintiff. Goldfarb referred 

to it as the best possible signage because it could be seen by 400,000 to 500,000 drivers that pass 

the building on a daily basis. A copy of excerpts from Mr. Goldfarb’s deposition are annexed as 

Exhibit B. 

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15. The Plaintiff has alleged that the summer months are its busiest month. Ex. A, ¶ 55.

16. Plaintiff sent a Notice to Cure regarding the signage issues but the letter has been ignored. 

A copy of the letter is annexed as Exhibit C.

17. Because these circumstances could not have been discovered with the exercise of due 

diligence, the amendment should be permitted.

Wherefore, the Plaintiff respectfully requests that it be permitted to serve and file this 

second amended complaint and grant such other and further relief to Plaintiff as is just and 

equitable in the circumstances.

Dated: September 27, 2021

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

/s/ Kathleen A. Daly 

By: Kathleen A. Daly 

515 Flagler Dr., Ste. P300 

West Palm Beach, FL 33401 

(917) 301-2437 

kdaly@kadalylaw.com 

Attorney for the Debtor 

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CERTIFICATE OF SERVICE

I hereby certify that a true and correct copy of the foregoing was served by Notice of Electronic 

Filing generated by CM/ECF and/or via email, on September 28, 2021, on all counsel or parties 

of record on the below/attached Service List. 

/s/ Kathleen A. Daly 

Kathleen A. Daly 

SERVICE LIST

1 MDG POWERLINE HOLDINGS, LLC

Jay M. Sakalo, Esq.

BILZIN SUMBERG BAENA PRICE & AXELROD LLP

1450 Brickell Avenue, 23rd Floor

Miami, FL 33131

Email: jsakalo@bilzin.com

And

Scott A. Hiaasen, Esq.

COFFEY BURLINGTON, P.L.

2601 South Bayshore Drive, Penthouse One

Miami, FL 33133

Email: shiaasen@coffeyburlington.com

2 XBK MANAGEMENT LLC d/b/a XTREME ACTION PARK

Represented by

Kai M. Jacobs, Esq.

Kai Jacobs, PA

2222 Ponce de Leon Blvd, Ste. 300

Coral Gables, FL 33134

 Email: kj@sflblg.com

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