IN RE RELIANCE ACCEPTANCE GROUP, INC.

Misc. No. 98-MC-103-RRM. Bankruptcy No. 98-288-PJW. Adversary Nos. A-98-171, AP-98-52.

235 B.R. 548 (1999)

In re RELIANCE ACCEPTANCE GROUP, INC., Reliance Acceptance Corporation, Reliance Acceptance Corp. of Arizona, Reliance Acceptance Corp. of Colorado, Reliance Acceptance Corp. of Florida, Reliance Acceptance Corp. of Georgia, Reliance Acceptance Corp. of Illinois, Reliance Acceptance Corp. of Indiana, Reliance Acceptance Corp. of Iowa, Reliance Acceptance Corp. of Kentucky, Reliance Acceptance Corp. of Minnesota, Reliance Acceptance Corp. of Missouri, Reliance Acceptance Corp. of Michigan, Reliance Acceptance Corp. of New Mexico, Reliance Acceptance Corp. of Nevada, Reliance Acceptance Corp. of North Carolina, Reliance Acceptance Corp. of Ohio, Reliance Acceptance Corp. of Oregon, Reliance Acceptance Corp. of South Carolina, Reliance Acceptance Corp. of Tennessee, Reliance Acceptance Corp. of Texas, Reliance Acceptance Corp. of Utah, and Reliance Acceptance Corp. of Washington, Debtors. Reliance Acceptance Group, Inc., Reliance Acceptance Corporation, Reliance Acceptance Corp. of Arizona, Reliance Acceptance Corp. of Colorado, Reliance Acceptance Corp. of Florida, Reliance Acceptance Corp. of Georgia, Reliance Acceptance Corp. of Illinois, Reliance Acceptance Corp. of Indiana, Reliance Acceptance Corp. of Iowa, Reliance Acceptance Corp. of Kentucky, Reliance Acceptance Corp. of Minnesota, Reliance Acceptance Corp. of Missouri, Reliance Acceptance Corp. of Michigan, Reliance Acceptance Corp. of New Mexico, Reliance Acceptance Corp. of Nevada, Reliance Acceptance Corp. of North Carolina, Reliance Acceptance Corp. of Ohio, Reliance Acceptance Corp. of Oregon, Reliance Acceptance Corp. of South Carolina, Reliance Acceptance Corp. of Tennessee, Reliance Acceptance Corp. of Texas, Reliance Acceptance Corp. of Utah, and Reliance Acceptance Corp. of Washington, Plaintiffs, v. Seymour I. Levin, Arnold Curnyn, Michael Sabbia, Brian J. O'Connor, Walter W. Goldberg, Ira Rollover, William Eric Graham, Ronald P. Graham, Keith Jacobs, Juli Jacobs, Michael Wien, Nannette Wien, Michael Wien as Custodian for Andrew Richard Wien, a minor, Michael Wien, as Custodian for Jason Stephen Wien, Philip Hansen, Darius Antia, David Aswad, Paul Aswad, Charles Boornazian, Daniel Carlson, Gilbert A. Fuiten, Claudia Goethe, Douglas Hart, Ernie Krueger, Mike Malik, John Mazzara, Duane Phillips, Carl Rech, Paul Senior, Leonard Stolarski, Sr., Larry Walley, Andrew Zych, Pama Partnership, and Delano Valek, Defendants.

United States District Court, D. Delaware.

June 2, 1999.


Attorney(s) appearing for the Case

Laura Davis Jones, Robert S. Brady, Edwin J. Harron, Young, Conaway, Stargatt & Taylor, Wilmington, Delaware; James H.M. Sprayregen, Steven C. Florsheim, Adam P. Merrill, Kirkland & Ellis, Chicago, Illinois; counsel for debtors and plaintiffs.

R. Bruce McNew, Taylor, Gruver & McNew, Greenville, Delaware; David B. Kahn, Mark E. King, David B. Kahn & Associates, Ltd., Northfield, Illinois; Helen J. Hodges, Jeffrey D. Light, Milberg Weiss Bershad Hynes & Lerach, LLP, San Diego, California; Michael S. Etkin, John K. Sherwood, Andrew Pincus, Ravin, Sarasohn, Cook, Baumgarten, Fisch & Rosen, PC, Roseland, New Jersey; counsel for The Sabbia Group and defendants.

Bruce E. Jameson, Prickett, Jones, Elliott & Kristol, Wilmington, Delaware; counsel for Bruce Taylor, Sidney J. Taylor, Jeffrey W. Taylor, Cindy Taylor Bliel, Iris Taylor, Taylor Family Partnership and Taylor Capital Group, Inc.

Neal J. Levitsky, Agostini, Levitsky, Isaacs & Kulesza, Wilmington, Delaware; Randall I. Marmor, Clausen Miller PC, Chicago, Illinois; counsel for St. Paul Mercury Insurance Company.


MEMORANDUM OPINION

McKELVIE, District Judge.

This is an appeal from an order entered by the Bankruptcy Court on October 5, 1998 granting the Debtors' motion to preliminarily enjoin certain shareholders from pursuing litigation in the United States District Court for the Western District of Texas. The shareholders have appealed. This is the court's decision on the appeal.

I. FACTUAL AND PROCEDURAL BACKGROUND...

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