UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

BROWARD DIVISION

 

In re:

SEVEN STARS ON THE HUDSON

CORPORATION, d/b/a ROCKIN’ JUMP Case No. 20-19106 - SMG

Chapter 11

Debtor,

____________________________________/

SEVEN STARS ON THE HUDSON Adversary Proceeding

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

 Plaintiff

v.

MDG POWERLINE HOLDINGS, LLC

AND XBK MANAGEMENT LLC,

d/b/a XTREME ACTION PARK,

Defendants.

___________________________________

MOTION OF DEBTOR SEVEN STARS ON THE HUDSON 

FOR A JUDICIAL SETTLEMENT CONFERENCE

COMES NOW Debtor, Seven Stars on the Hudson, the Debtor-Plaintiff and 

Counterclaimant Defendant (“Debtor”), by and through its undersigned counsel, 

and files this Motion for Judicial Settlement Conference and as grounds therefore 

states as follows:

1. On June 5, 2019, the Debtor filed for relief under Chapter 11 of Title 

Case 19-01230-SMG Doc 109 Filed 12/11/20 Page 1 of 6
11 of the United States Code in the United States Bankruptcy Court for the Southern 

District of Florida (“Petition”).

2. On July 17, 2019, the Debtor commenced an adversary proceeding 

against its Landlord and Xtreme.

3. On December 5, 2019, the Debtor filed its first amended complaint, 

against the Landlord and Xtreme.

4. The Defendants in the Adversary Proceeding, MDG Powerline 

Holdings, LLC (“Landlord”) and XBK Management, LLC d/b/a/ Xtreme Action 

Park (“Xtreme”) filed motions to dismiss the first amended complaint.

5. By order dated April 28, 2020, this Court denied the motions to dismiss.

6. On May 12, 2020, the Landlord and Xtreme each filed answers raising 

a number of affirmative defenses. The Landlord also counterclaimed for breach of 

the lease agreement.

7. On June 2, 2020, the Debtor filed its answer to the Landlord’s 

counterclaim and raised affirmative defenses.

8. The parties have been engaged in document discovery and under a 

Scheduling Order, all discovery is to be completed by March 15, 2021 with fact 

discovery to be completed by January 15, 2021.

9. The Debtor moved for leave to serve and file a second amended 

complaint. The Defendants opposed and the Debtor filed its Reply on December 4, 

Case 19-01230-SMG Doc 109 Filed 12/11/20 Page 2 of 6
2020. This Court has scheduled a January 5, 2021 video hearing for this motion.

10. Although the Debtor served its deposition notices several months ago, 

those depositions have been put on hold because of ongoing document discovery.

11. By way of this Motion, Debtor requests that this Honorable Court allow 

and require Debtor and Defendants to attend a judicial settlement conference as will 

be more fully set forth below.

BACKGROUND

12. The Debtor operates a Trampoline Park at 5300 Powerline Road in Fort 

Lauderdale. When the Debtor initially opened, the Park was operated as a franchise 

of Rockin’ Jump, LLC. 

13. The Debtor has alleged, inter alia, that the Landlord and Xtreme 

wrongfully interfered with its business and that the Landlord has violated the Quiet 

Enjoyment provision of the Lease. The Debtor has also alleged that the Defendants 

were complicit in removing its signage. The Landlord and Xtreme have denied the 

material allegations.1

1 In its proposed second amended complaint the Debtor has alleged that the Defendants 

also interfered with its relationship with the Franchisor.

Case 19-01230-SMG Doc 109 Filed 12/11/20 Page 3 of 6
14. While document discovery is still ongoing, the Debtor believes that the 

parties would benefit from a judicial settlement conference before depositions begin 

and before even more costs are incurred.2

15. The parties have exchanged proposals but remain far apart on how to 

resolve the Adversary Proceeding. 

RELIEF REQUESTED

16. The Debtor files this Motion in order to attempt to bring these claims 

in the Adversary Proceeding to resolution. It has already filed its Plan of 

Reorganization that provides, inter alia, payment of the rent arrears. 

17. Debtor files this Motion requesting referral to a judicial settlement 

conference to ensure that these claims move forward as swiftly and economically as 

possible and before significant time or legal expense is incurred. To this end, Debtor

maintains that resolution of the Adversary Claims early in this case and before 

depositions begin through a judicial settlement conference case would yield the 

timeliest and most cost effective result for the parties and would be in the interest of 

judicial economy. 

2 While the scheduling order provides for a mediation by December 14, 2020, there has 

been no movement on that front because the parties cannot agree on a mediator. Moreover, the 

Debtor has to be careful in terms of spending and therefore could not agree to a private mediator 

as Defendants had demanded.

Case 19-01230-SMG Doc 109 Filed 12/11/20 Page 4 of 6
18. If any resolution is reached by way of a judicial settlement conference 

such resolution would be subject to approval by this Court. 

19. The undersigned counsel hereby certifies that a bona fide good faith 

effort has been made or will be made to resolve all issues and controversies in this 

motion with the Defendants named herein to avoid the necessity of a hearing in this 

matter per Local Rules 9073-1(d).

WHEREFORE Debtor Seven Stars respectfully requests that the Court enter 

an order referring this cause to a judicial settlement conference for the reasons 

contained and set forth herein and for other such relief as this Court deems just and 

proper.

Respectfully submitted December 11, 2020

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

/s/ Kathleen A. Daly

By: Kathleen A. Daly

515 N. Flagler Dr., Ste. P300

West Palm Beach, FL 33401

(917) 301-2437

(561) 293-8514

kdaly@kadalylaw.com

Attorney for the Debtor

Case 19-01230-SMG Doc 109 Filed 12/11/20 Page 5 of 6
CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was served 

on December 11, 2020 by Notice of Electronic Filing generated by CM/ECF and/or 

via email, on all counsel for parties of record on the below/attached Service List.

s/ Kathleen A. Daly 

 Kathleen A. Daly

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 109 Filed 12/11/20 Page 6 of 6