UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

BROWARD DIVISION

In re:

SEVEN STARS ON THE HUDSON 

CORPORATION d/b/a ROCKIN’ JUMP,

Debtor, 

____________________________________/ 

SEVEN STARS ON THE HUDSON 

CORPORATION d/b/a ROCKIN’ JUMP

Plaintiff,

vs. 

MDG POWERLINE HOLDINGS, LLC AND 

XBK MANAGEMENT LLC d/b/a XTREME 

ACTION PARK,

Defendants. 

_____________________________________/ 

CASE NO. 19-17544-RBR

Chapter 11 

Adversary Proceeding

No. 19-AP-1230-SMG

DEFENDANT XBK’S REPLY TO PLAINTIFF SEVEN STARS RESPONSE TO XBK’S 

FIRST MOTION FOR RECOVERY OF ATTORNEY’S FEES AND SUPPORTING 

MEMORANDUM OF LAW

Defendant XBK Management, LLC (“XBK”), pursuant to Section 501.2105(1), Florida 

Statutes, Bankruptcy Rule 7054(b)(2)(A), and Local Rule 7054-1, hereby replies to Plaintiff Seven 

Stars on the Hudson Corporation’s (“Seven Stars”) Response To XBK’s First Motion for Recovery 

of Attorney’s Fees Memorandum of Law (the “Response”) (ECF 293), as follows: 

1. On January 31, 2022, the Court entered final judgment in XBK’s favor on all claims 

brought against it, including a claim for violation of the Florida Deceptive and Unfair Trade 

Practices Act (“FDUTPA”). (ECF 241; 242).

2. Seven Stars has appealed the final judgment. (ECF 246). 

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3. On February 14, 2022, XBK filed its First Motion for Recovery of Attorneys’ Fees 

and Supporting Memorandum of Law (the “Motion”). (ECF 255). The Motion was filed in 

accordance with Rule 7054(2)(A), Fed. Bankr. R. and Rule 54, Fed. R. Civ. P., which required that 

a motion seeking the recovery of attorney’s fees be filed within fourteen (14) days after the 

judgment’s entry. See (Id.) (filed February 14, 2022). 

4. On March 21, 2022, Seven Stars filed its Response to the Motion. (ECF 293). 

5. Therein, Seven Stars argued that the Motion is premature because a discrepancy 

exists between the procedures attorneys and Courts shall follow regarding awarding attorneys’ fees 

following judgment entered on claims for violation of FDUTPA.

6. Specifically, Section 501.2105(1), Florida Statutes, provides that to recover 

attorneys’ fees on a FDUTPA claim, a party must first exhaust all appeals from the non-prevailing 

party before the Court will entertain a motion seeking the recovery of attorneys’ fees. Florida’s 

statute stands in contrast to the procedural requirements for seeking attorneys’ fees, as prescribed 

by Rule 7054(2)(A), Fed. Bankr. R. and Rule 54, Fed. R. Civ. P. 

7. A review of the decisional law concerning the treatment of this discrepancy appears 

to weigh in favor of abating disposition of the Motion until such time as Seven Stars’ appeal of the 

final judgment has been determined. 

MEMORANDUM OF LAW

In reviewing Seven Stars’ Response to the Motion, XBK acknowledges that prevailing case 

law favors an abatement of the Motion’s disposition pending the outcome of Seven Stars’ appeal. 

In making its argument, Seven Stars relies on Procaps S.A. v. Patheon, Inc. 157 F.Supp3d 

1199, 1200 (S.D. Fla. 2016) (finding that a motion for attorneys’ fees be stayed pending the 

exhaustion of all appeals). More recent case law also supports this proposition. See Kipu Sys. LLC 

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v. Zencharts LLC, No. 17-25733-civ, 20021 WL 1891710 at *6 (S.D. Fla. 2021) (affirming that 

FDUPTA requires the exhaustion of appeals prior to the prevailing party receiving his or her 

attorneys’ fees and costs from the non-prevailing party); Reilly v. Chipotle Mexican Grill, Inc., 

1:15-cv-23425, 2018 WL 1883086 at *4 (S.D. Fla 2018) (to recover attorneys’ fees in a FDUTPA 

action, a party must receive a favorable judgment from a trial court with respect to the legal action, 

including the exhaustion of all appeals). 

WHEREFORE, XBK requests that the Court stay the Motion pending the exhaustion of 

all appeals and for such additional relief as this Court deems just and proper.

Respectfully submitted,

By: /s/ Kai E. Jacobs 

Kai E. Jacobs

Fla. Bar No. 987336 

Email: kj@sflblg.com

SOUTH FLORIDA BUSINESS LAW GROUP

2222 Ponce de Leon Boulevard, Suite 300 

Coral Gables, Florida 33134 

Tel: (305) 768-9846 

Attorneys for XBK Management 

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CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true and correct copy of the foregoing was served by e-mail 

through the CM/ECF system on April 7th, 2022, on all counsel and parties of record on the Service 

List below.

SERVICE LIST

Kathleen A. Daly, Esq.

Law Office of Kathleen A. Daley, P.A. 

Counsel for Debtor/Plaintiff

515 N. Flagler Dr., Ste. P300 

West Palm Beach, FL 33401 

Tel: 561-293-8514 

Email: kdaly@kadalylaw.com 

Jay M. Sakalo, Esq.

Bilzin Sumberg Baena Price & Axelrod LLP

Counsel for MDG Powerline 

1450 Brickell Avenue, 23rd Floor 

Miami, FL 33131 

Tel: 305-374-7580 

Email: jsakalo@bilzin.com

Susan E. Raffanello, Esq.

Scott A. Hiaasen, Esq. 

Coffey Burlington, P.L.

Counsel for MDG Powerline 

2601 South Bayshore Drive, Penthouse One 

Miami, FL 33133 

Tel: 305-858-2900 

Fax: 305-858-5261 

Email: sraffanello@coffeyburlington.com

 shiaasen@coffeyburlington.com

 lmaltz@coffeyburlington.com

 lperez@coffeyburlington.com

 service@coffeyburlington.com 

By: /s/ Kai E. Jacobs 

 KAI E. JACOBS

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