Opinion ID: 2780845
Heading Depth: 3
Heading Rank: 1

Heading: Motion for Partial Summary Judgment

Text: Notwithstanding the Examiner’s unfavorable report, on November 21, 2011, the Zeltser Group moved for partial summary judgment on the ownership issue in 14 Case: 12-15595 Date Filed: 02/20/2015 Page: 15 of 57 the Fisher Island and Little Rest cases.4 The Zeltser Group sought a determination that: (1) the Valmore Trust was invalid; (2) neither Gibraltar law nor United Kingdom law applied to the proceedings; and (3) JWL Entertainment Group, Inc. (“JWL”), a Delaware corporation, was the equitable owner of Fisher Island and Little Rest. The Zeltser Group’s ownership theory was twofold. First, the Valmore Trust 5 was a “sham” and invalid because Kay, and not Badri, was the settlor and beneficiary. Alternatively, Fisher Island Limited (“Fisher Limited”) and Grosvenor Trading Holding Limited (“Grosvenor”), which the Zeltser Group acknowledged were the respective parent companies of Fisher Island and Little Rest, were transferred from trustee Miselva to JWL. JWL was then transferred out of the Valmore Trust to Imedinvest. The Zeltser Group argued that, pursuant to these transactions, JWL held equitable ownership of Fisher Island and Little Rest. Paradoxically, the Zeltser Group maintained that the bankruptcy court lacked jurisdiction to resolve any issue regarding the JWL transactions. In opposition to the partial summary judgment motion, the Redmond Group argued that the Gibraltar Court’s judgment precluded the bankruptcy court from 4 As discussed below, see infra Part III.A, the Zeltser Group also moved to withdraw reference of the bankruptcy proceedings to the district court for adjudication of the ownership issue. 5 In the motion, the Zeltser Group acknowledged the Redmond Group’s assertion that SP Trustees Gmbh (“SP Trustees”) was the successor to Miselva, the then-trustee of the Valmore Trust. 15 Case: 12-15595 Date Filed: 02/20/2015 Page: 16 of 57 determining the validity of the Valmore Trust. The Gibraltar Court’s factual findings, including its implicit finding that the Valmore Trust was valid, were entitled to comity, and a New York state court specifically declined to find that the Valmore Trust was a sham. Furthermore, the JWL transaction was abandoned. Even assuming the transaction was completed, Miselva was still the legal and beneficial owner of Fisher Limited and Grosvenor, as indicated in an unrebutted expert opinion submitted by the Redmond Group. The Zeltser Group did not file a reply.