Bienert, Miller, & Katzman, PLC Obtain Dismissal of $6 Billion Counterclaim

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In the case of Marc S. Kirschner v. Timothy Blixseth, Bienert, Miller, & Katzman, PLC were able to dismiss an enormous counterclaim made by a former Yellowstone Mountain Club executive.

On November 1, 2012, Bienert, Miller & Katzman, PLC, a leading Southern California trial law firm, along with co-counsel Bailey & Glasser, LLP and Mullin Hoard Brown, LLP, obtained dismissal with prejudice of a six billion dollar counterclaim filed by a former executive of Yellowstone Mountain Club, LLC along with a sanctions award in favor of their client.

Tony Bisconti and Steve Katzman collaborated with attorneys in West Virginia and Texas on behalf of the trustee of the liquidating trust formed under the bankruptcy reorganization plan of the Yellowstone Mountain Club, LLC in order to dismiss the counterclaim filed by the former CEO and president of the club. The counterclaim contained allegations of RICO violations, conspiracy, and contract breach, and requested compensation for damages amounting to 6 billion dollars. The United States District Court for the Central District of California dismissed the counterclaim with prejudice and denied the former executive’s motion to modify the counterclaim. Furthermore, on December 11, 2012, on motion of Bienert, Miller & Katzman and co-counsel, sanctions were granted by the court in favor of the trustee, awarding costs and fees incurred through the counterclaim defense process. The court, when awarding fees, held that:

"[E]xtensive strategy, review, analysis, and communications performed by both BMK and [co-counsel] B&G were substantive in nature and necessary, addressing complex substantive and procedural issues arising in this case due to several factors, including but not limited to: the nature of the specious claims asserted by Mr. Blixseth; the preexisting litigation across several forums; and complex legal questions of intersecting state, federal, and bankruptcy law."

The dismissal of the counterclaim with prejudice and award of sanctions were significant victories. “We are pleased with the court’s ruling, and appreciate the time and attention the court spent in resolving these complex, hard-fought issues,” said Steve Katzman, partner with Bienert, Miller & Katzman.

For more details regarding the court’s ruling in case number CV 11-08283-GAF-SP, overseen by the United States District Court for the Central District of California, please visit http://www.bmkattorneys.com/cases.asp

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Nader Ahmadnia
Bienert, Miller, & Katzman
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