DOCSLIB.ORG

IN the UNITED STATES BANKRUPTCY COURT for the SOUTHERN DISTRICT of INDIANA INDIANAPOLIS DIVISION in Re

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
IN the UNITED STATES BANKRUPTCY COURT for the SOUTHERN DISTRICT of INDIANA INDIANAPOLIS DIVISION in Re Case 19-50012 Doc 37 Filed 03/05/19 EOD 03/05/19 17:21:59 Pg 1 of 23 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION ) In re: ) Chapter 11 ) USA GYMNASTICS, ) Case No. 18-09108-RLM-11 ) Debtor. ) ) USA GYMNASTICS, ) ) Plaintiff, ) v. ) Adv. Case No. 19-50012 ) ACE AMERICAN INSURANCE ) RELIEF IS SOUGHT FROM A COMPANY f/k/a CIGNA INSURANCE ) UNITED STATES DISTRICT JUDGE COMPANY, GREAT AMERICAN ) ASSURANCE COMPANY, LIBERTY ) INSURANCE UNDERWRITERS INC., ) NATIONAL CASUALTY COMPANY, ) RSUI INDEMNITY COMPANY, TIG ) INSURANCE COMPANY, VIRGINIA ) SURETY COMPANY, INC. f/k/a ) COMBINED SPECIALTY INSURANCE ) COMPANY, WESTERN WORLD ) INSURANCE COMPANY, ENDURANCE ) AMERICAN INSURANCE COMPANY, ) AMERICAN INTERNATIONAL GROUP, ) INC., AMERICAN HOME ASSURANCE ) COMPANY, AND DOE INSURERS, ) ) Defendants. ) ) DEFENDANTS’ JOINT MOTION TO WITHDRAW THE REFERENCE OF THE ADVERSARY PROCEEDING The named Defendants in the above-captioned adversary proceeding (the “Adversary Proceeding”), Ace American Insurance Company, f/k/a Cigna Insurance Company, Great American Assurance Company, Liberty Insurance Underwriters Inc. (“LIU”), National LEGAL\40078315\24 Case 19-50012 Doc 37 Filed 03/05/19 EOD 03/05/19 17:21:59 Pg 2 of 23 Casualty Company, RSUI Indemnity Company, TIG Insurance Company, Virginia Surety Company f/k/a Combined Specialty Insurance Company, Western World Insurance Company, Endurance American Insurance Company, American International Group, Inc., and American Home Assurance Company (together “Defendants”), through undersigned counsel, file this motion (the “Motion”) pursuant to 28 U.S.C. § 157(d), Rule 5011(a) of the Federal Rules of Bankruptcy Procedure, and Local Bankruptcy Rule B-5011-1 requesting that the United States District Court withdraw the reference of the Adversary Proceeding to the United States Bankruptcy Court for the Southern District of Indiana. This Adversary Proceeding is a non-core proceeding, and the parties have demanded, or will demand, a jury trial and will not consent to allow the Bankruptcy Court to conduct the jury trial. Concerns of efficiency and forum shopping further dictate that this Court should grant the Motion. PRELIMINARY STATEMENT This adversary proceeding is an insurance dispute between USA Gymnastics (“USAG”) and certain of its insurers asserting exclusively state law claims for: (1) declaratory judgment regarding the scope of USAG’s rights under various insurance policies each of the defendants sold to USAG with respect to claims that USAG alleges are “nearly all tied, some way” to abuse carried out by Lawrence “Larry” Gerard Nassar (“Nassar”), and (2) judgment against all defendants for damages arising from their alleged breaches of their respective insurance policies. On April 6, 2018—pre-petition—USAG filed a substantially similar coverage action raising the same substantive issues against its insurers as those raised in the new Complaint. After it filed for bankruptcy, USAG erroneously filed a “Notice of Stay Due to Bankruptcy” in the Federal District Court where the coverage action was pending and secured administrative closure of that case. 2 LEGAL\40078315\24 Case 19-50012 Doc 37 Filed 03/05/19 EOD 03/05/19 17:21:59 Pg 3 of 23 Cause exists for withdrawing the reference from the Bankruptcy Court for this Adversary Proceeding, pursuant to 28 U.S.C. § 157(d) because: (1) This proceeding is not a “core” bankruptcy proceeding and the Bankruptcy Court therefore lacks jurisdiction to enter final judgment on USAG’s claims; (2) The Defendants have a right to a jury trial on USAG’s claims and will not consent to a jury trial in the Bankruptcy Court; (3) As the resolution of this Adversary Proceeding turns, not on application or interpretation of bankruptcy law, but rather on insurance coverage issues with which the Bankruptcy Court has no special experience or familiarity, the interest of judicial economy counsels litigating this action in the District Court; and (4) Allowing USAG, after the bankruptcy case was filed and a judge assigned, to inaccurately represent that the automatic stay applies to the prior pending District Court action would encourage forum shopping. Courts in this Circuit consistently withdraw the reference in similar non-core, state law coverage disputes; this Court should follow suit here. BACKGROUND This Adversary Proceeding represents USAG’s second complaint filed with respect to insurance coverage for Nassar-related claims. On April 6, 2018, USAG, facing hundreds of lawsuits from Nassar’s victims, filed a coverage action in Indiana state court against its insurers, including most of the Defendants named again in the Adversary Proceeding. See Complaint for Breach of Insurance Policy and Declaratory Judgment of Coverage, Indiana Superior Court Case No. 49D01-1804-PL-013423, a true and correct copy of which is attached hereto as Exhibit “A”. USAG demanded a jury trial in that coverage action. The defendants timely removed that action to the District Court. On July 9, 2018, the District Court stayed that coverage action while USAG sought to resolve the claims of Nassar’s victims through mediation. On November 5, 2018, the District Court lifted the stay on the coverage action after the attempts 3 LEGAL\40078315\24 Case 19-50012 Doc 37 Filed 03/05/19 EOD 03/05/19 17:21:59 Pg 4 of 23 at settlement were unsuccessful. On November 30, 2018, the parties submitted a proposed case management plan with deadlines through trial. On December 4, 2018, LIU filed a motion to dismiss USAG’s complaint in the coverage action pursuant to Fed. R. Civ. P. 12(b)(6) for failure to state a claim upon which relief can be granted (the “LIU Motion”). See Motion to Dismiss and Memorandum of Law in support thereof, District Court Case No. 1:18-cv-01306-RLY-MPB, Dkt. Nos. 65 and 66, true and correct copies of which is attached hereto as Exhibit “B”. On December 5, 2018, USAG filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code (Title 11 of the United States Code) in the Bankruptcy Court. On December 14, 2018, USAG filed a “Notice of Stay Due to Bankruptcy” in the District Court proceeding, asserting (incorrectly) that litigation “involving USAG such as this action” is automatically stayed. See Notice of Stay Due to Bankruptcy, District Court Case No. 1:18-cv- 01306-RLY-MPB, Dkt. No. 70, a true and correct copy of which is attached hereto as Exhibit “C”. On January 25, 2019, citing USAG’s bankruptcy filing and the operation of the automatic stay under 11 U.S.C. § 362, the District Court administratively closed USAG’s original coverage action against its insurers without prejudice to the rights of the parties to move to reopen the case within 60 days after the conclusion of USAG’s bankruptcy proceedings. See Order Administratively Closing Case, District Court Case No. 1:18-cv-01306-RLY-MPB, Dkt. No. 72, a true and correct copy of which is attached hereto as Exhibit “D”. In the Order, the District Court ordered that all pending deadlines and motions, which would include the LIU Motion, were denied as moot. Id. Then, on February 1, 2019, USAG commenced this Adversary Proceeding against its insurers in the Bankruptcy Court, seeking to litigate the same claims raised in USAG’s initial complaint against its insurers, including the causes of action for declaratory relief and breach of 4 LEGAL\40078315\24 Case 19-50012 Doc 37 Filed 03/05/19 EOD 03/05/19 17:21:59 Pg 5 of 23 contract. A true and correct copy of the Adversary Proceeding Complaint (the “Adversary Complaint”) is attached hereto as Exhibit “E”. On March 1, 2019, before responsive pleadings were due, USAG filed a motion for partial summary judgment against LIU raising many of the same issues that were set forth in LIU’s Motion. A true and correct copy of that motion is attached hereto as Exhibit “F”. By way of its Adversary Complaint, USAG asks the Bankruptcy Court to make findings regarding the extent of USAG’s coverage pursuant to numerous insurance policies issued by multiple insurance companies spanning over two decades as well as the Defendants’ alleged pre-petition breaches of pre-petition insurance policies. These are classic non-core state law claims, which the Bankruptcy Court has neither the statutory nor the constitutional authority to finally adjudicate. Therefore, the Defendants have filed this Motion seeking to have this Adversary Proceeding withdrawn to the District Court for further proceedings. ARGUMENT I. Legal Standard for Permissive Withdrawal Under 28 U.S.C. § 157(d) Pursuant to 28 U.S.C. § 1334(a), the district courts of the United States have “original and exclusive jurisdiction over all cases under title 11.” In the United States District Court for the Southern District of Indiana, Local Rule 83-8 provides for the automatic referral of such proceedings to the United States Bankruptcy Court for the Southern District of Indiana. However, the District Court may withdraw the reference to the Bankruptcy Court “for cause shown.” 28 U.S.C. § 157(d). Because the bankruptcy court acquires jurisdiction only by reference from the district court, a district court may permissively withdraw a proceeding from the bankruptcy court, in whole or in part, “for cause shown” pursuant to 28 U.S.C. § 157(d). See In re Dorner, 5 LEGAL\40078315\24 Case 19-50012 Doc 37 Filed 03/05/19 EOD 03/05/19 17:21:59 Pg 6 of 23 343 F.3d 910, 914 (7th Cir. 2003) (“District judges may refer matters to bankruptcy judges but also may withdraw them and render decisions themselves.”). While the statute does not define “cause” for purposes of permissive withdrawal, courts in this Circuit consider various factors to determine whether “cause” has been shown, including: (1) whether the proceeding is core or non-core, (2) which forum serves the interests of judicial economy and convenience, (3) which forum promotes the uniformity and efficiency of bankruptcy administration, (4) which forum prevents forum shopping and confusion, and (5) whether the parties are entitled to a jury trial and have requested one.
Load more

Recommended publications
  • Report of the Independent Investigation
    Report of the Independent Investigation The Constellation of Factors Underlying Larry Nassar’s Abuse of Athletes Joan McPhee | James P. Dowden December 10, 2018 TABLE OF CONTENTS EXECUTIVE SUMMARY .............................................................................................................1 INVESTIGATIVE INDEPENDENCE, SCOPE AND METHODOLOGY .................................12 A. Independence .........................................................................................................13 B. Scope ......................................................................................................................14 C. Methodology ..........................................................................................................14 1. Witness Interviews .....................................................................................16 2. Document Review ......................................................................................17 I. WHAT HAPPENED ..........................................................................................................19 A. Nassar’s Abuse.......................................................................................................20 B. Efforts to Bring Nassar to Justice ..........................................................................24 C. Legal Proceedings ..................................................................................................30 1. Criminal Proceedings .................................................................................30
    [Show full text]
  • Sports Law Year in Review
    Sports Law Year in Review Presented at the 2019 Sports Lawyers Association Annual Conference May 1, 2018 – April 1, 2019 Contents 1. Agents & Agent Regulation te ...................................................................................... 1 2. Leagues - Labor Matters .............................................................................................. 2 3. Leagues - Non-labor Matters ....................................................................................... 4 4. Contracts ...................................................................................................................... 9 5. College, High School, and Youth Sports ..................................................................... 12 6. International & Olympic Sports ................................................................................... 24 7. Title IX, Gender Equality, and Civil Rights ................................................................ 36 8. Intellectual Property & Broadcasting ........................................................................... 42 9. Personal Injury, Health, and Safety ............................................................................. 46 10. Stadiums & Venues ...................................................................................................... 52 11. Sports Betting & Daily Fantasy ................................................................................... 56 This summary of illustrative and significant sports law developments has been compiled from
    [Show full text]
  • United States Bankruptcy Court for the Southern District of Indiana Indianapolis Division
    Case 18-09108-RLM-11 Doc 140 Filed 01/09/19 EOD 01/09/19 15:28:58 Pg 1 of 11 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION In re: Chapter 11 USA GYMNASTICS,1 Case No. 18-09108-RLM-11 Debtor. OBJECTION OF THE ADDITIONAL TORT CLAIMANTS COMMITTEE OF SEXUAL ABUSE SURVIVORS TO DEBTOR’S FIRST DAY MOTION FOR AN ORDER (I) AUTHORIZING THE DEBTOR TO PAY AND HONOR CERTAIN PRE-PETITION WAGES, BENEFITS, AND OTHER COMPENSATION OBLIGATIONS; AND (II) AUTHORIZING FINANCIAL INSTITUTIONS TO HONOR AND PROCESS CHECKS AND TRANSFERS RELATED TO SUCH OBLIGATIONS AND THE SUPPLEMENT THERETO The Additional Tort Claimants Committee of Sexual Abuse Survivors (the “Sexual Abuse Survivors’ Committee”), appointed in this case under chapter 11 of Title 11 of the United States Code (as amended, the “Bankruptcy Code”), hereby submits this objection to the Debtor’s First Day Motion for an Order (I) Authorizing the Debtor to Pay and Honor Certain Pre-Petition Wages, Benefits, and Other Compensation Obligations; and (II) Authorizing Financial Institutions to Honor and Process Checks and Transfers Related to Such Obligations (the “Wage Motion”) [Doc 11] and the Supplement thereto filed on January 7, 2019 (the “Supplement”) [Doc 135].2 In further support of its objection, the Sexual Abuse Survivors’ Committee respectfully states as follows: 1 The last four digits of the Debtor’s federal tax identification number are 7871. The location of the Debtor’s principal office is 130 E. Washington Street, Suite 700, Indianapolis, Indiana 46204. 2 Capitalized terms shall have the meanings and definitions ascribed to them in the Wage Motion and the Supplement.
    [Show full text]
  • Reports Sexual Assault Allegations to One of the Victim Gymnasts
    Investigation and Review of the Federal Bureau of Investigation’s Handling of Allegations of Sexual Abuse by Former USA Gymnastics Physician Lawrence Gerard Nassar 21-093 JULY 2021 EXECUTIVE SUMMARY Investigation and Review of the Federal Bureau of Investigation’s Handling of Allegations of Sexual Abuse by Former USA Gymnastics Physician Lawrence Gerard Nassar containing PowerPoint slides and videos that Nassar Introduction and Factual Findings had provided to USA Gymnastics of Nassar performing The U.S. Department of Justice (Department, DOJ) his purported medical technique on athletes. Office of the Inspector General (OIG) initiated this investigation based on allegations that Federal Bureau Shortly after the meeting, USA Gymnastics advised of Investigation (FBI) employees in the FBI’s Indianapolis Nassar that he should no longer attend USA Field Office mishandled allegations of sexual abuse of Gymnastics events, and Nassar retired from his USA athletes by former USA Gymnastics physician Lawrence Gymnastics position in September 2015. However, Gerard Nassar. Nassar was employed as an Nassar continued to maintain his positions at MSU, Osteopathic Physician and Associate Professor at Twistars USA Gymnastics Club, and Holt High School. Michigan State University’s (MSU) Department of Family and Community Medicine, where he treated patients Over the next 6 weeks, the Indianapolis Field Office from 1996 through 2016. For most of that time, Nassar conducted limited follow-up, which involved conducting also was employed as the USA Gymnastics National a telephonic interview on September 2 of one of the Medical Coordinator and a treating physician for three athletes, reviewing the thumb drive provided by gymnasts. Among the places where Nassar treated Penny, and discussing the allegations with the U.S.
    [Show full text]
  • Facilities Director Finds Ways to Save
    TONIGHT Rain Showers. Low of 36. Search for The Westfield News “It is the individual who is not TODAY INThe WESTFIELD Westfield Search for The Westfield News Westfield350.com The WestfieldNewsNews interested in his fellow men who HISTORY: Serving Westfield, Southwick, and surrounding Hilltowns has the“T greatestIME IS difficulties THE ONLY WEATHER 1782: Bluebirds, blackbirds, in life and providesCRITIC the greatestWITHOUT and robins appeared, TONIGHT injury to others.AMBITION It is from .” Partly Cloudy. among such individualsJOHN STEINBECK that all Searchhuman for failures The Westfield spring.” News Westfield350.comLow of 55. Thewww.thewestfieldnews.com Westfield News — ALFRED ADLER Serving Westfield, Southwick, and surrounding Hilltowns “TIME IS THE ONLY WEATHERVOL. 86 NO. 151 TUESDAY, JUNE 27, 2017 CRITIC 75WITHOUT cents VOL. 87 NO. 46 SATURDAY, FEBRUARY 24, 2018 75 Cents TONIGHT AMBITION.” Partly Cloudy. JOHN STEINBECK Low of 55. www.thewestfieldnews.com VOL.Facilities 86 NO. 151 directorTUESDAY, finds JUNE 27, 2017 ways to save 75 cents By AMY PORTER Communities grant of $266,000 that the city received as a Correspondent result of signing the Community Compact partnership WESTFIELD – Director of Facilities Bryan P. Forrette with the Baker-Polito administration. The bulk of that has been in the spotlight lately in City Hall. First the money is being spent to change over the lighting in the Finance Committee asked him to come in on Feb. 14 and schools to LED light. Sullivan said North Middle School tell them about his work, which the committee then has just been completed, and Westfield High School is reported back to the City Council the next day.
    [Show full text]
  • USA GYMNASTICS,1 Debtor. Case No. 18-09
    Case 19-50075 Doc 49 Filed 04/12/19 EOD 04/12/19 15:02:12 Pg 1 of 21 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION In Re: USA GYMNASTICS,1 Case No. 18-09108-RLM-11 Debtor. USA GYMNASTICS, Plaintiff, v. Adv. Proc. No. 19-50075 GEDDERTS’ TWISTARS USA GYMNASTICS CLUB, INC., TWISTARTS USA, INC., JOHN GEDDERT, KATHRYN GEDDERT, DONALD PETERS, SOUTHERN CALIFORNIA ACRO TEAM, INC., BMK PARTNERS LTD, BMK TRAINING FACILITIES, LTD., KAROLYI TRAINING CAMPLS, LLC, KAROLYI’S ELITE, KAROLYI WORLD GYMNASTICS INC., BELA KAROLYI, MARTHA KAROLYI, and RICHARD CARLSON, Defendants. THE KAROLYI PARTIES’ OBJECTION IN LIMITED OPPOSITION TO PLAINTIFF’S MOTION FOR A PRELIMINARY INJUNCTION Bela Karolyi, Martha Karolyi, Karolyi Training Camps, LLC, BMK Partners Ltd., BMK Training Facilities, Ltd. (collectively, the “Karolyi Parties”), by counsel, hereby object to the Motion for a Preliminary Injunction (the “Injunction Motion”) filed by plaintiff, 1 The last four digits of Debtor’s federal tax identification number are 78771. The location of Debtor’s principal offices is 130 E. Washington Street, Suite 700, Indianapolis, Indiana 46204. Case 19-50075 Doc 49 Filed 04/12/19 EOD 04/12/19 15:02:12 Pg 2 of 21 USA Gymnastics (“Debtor” or “USAG”), and in support of their objection, the Karolyi Parties state as follows: PRELIMINARY STATEMENT The Karolyi Parties oppose Debtor’s Injunction Motion only to seek a narrow carve- out, which would enable the California Court (defined below) to decide the Karolyi Parties’ fully-briefed motion to dismiss for lack of personal jurisdiction. Debtor’s proposed injunction is overbroad and unsupported by applicable caselaw, and the articulated needs of Debtor can be met without subjecting the Karolyi Parties to such injunction.
    [Show full text]
  • USA Gymnastics Recognizes It Is Inarguably an Important Component of Your Work Due to the Illegal, Abusive and Despicable Behavior of Dr
    February 9, 2018 Senator Jerry Moran Chairman Subcommittee on Consumer Protection Product Safety, Insurance and Data Security United States Senate 512 Dirksen Senate Building Washington DC, 20510 Senator Richard Blumenthal Ranking Member Subcommittee on Consumer Protection Product Safety, Insurance and Data Security United States Senate 512 Dirksen Senate Building Washington DC, 20510 Dear Chairman Moran and Ranking Member Blumenthal: Thank you for your letter of January 25, 2018, in which you seek information regarding the safety and well-being of athletes. USA Gymnastics recognizes it is inarguably an important component of your work due to the illegal, abusive and despicable behavior of Dr. Larry Nassar. While USA Gymnastics is currently facing litigation in multiple jurisdictions, which may limit what I can say regarding some matters, please know that my goal is to work collaboratively with Congress to place the safety and wellbeing of athletes at the forefront of everything we do. As USA Gymnastics enters its third year of working through the damage Nassar caused to individual athletes and our sport, I want to outline some specific steps that we have taken to address what has occurred and to prevent the possibility of it occurring again in the future: • In June 2017, former U.S. Attorney Deborah Daniels delivered to USA Gymnastics 70 recommendations to improve both athlete safety and the culture within our organization. We work every day to address these issues, and I am pleased to report that we have very recently surpassed the 80% mark of recommendations that we are in the process of implementing, or have already implemented.
    [Show full text]
  • IN the UNITED STATES BANKRUPTCY COURT for the SOUTHERN DISTRICT of INDIANA INDIANAPOLIS DIVISION in Re: USA GYMNASTICS, Debtor
    Case 19-50075 Doc 6 Filed 03/29/19 EOD 03/29/19 22:24:09 Pg 1 of 11 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION In re: Chapter 11 1 USA GYMNASTICS, Case No. 18-09108-RLM-11 Debtor. USA GYMNASTICS, Plaintiff, v. GEDDERTS’ TWISTARS USA Adversary Case No. 19-50075 GYMNASTICS CLUB, INC., TWISTARS USA, INC., JOHN GEDDERT, KATHRYN GEDDERT, DONALD PETERS, SOUTHERN CALIFORNIA ACRO TEAM, INC., BMK PARTNERS LTD, BMK TRAINING FACILITIES, LTD., KAROLYI TRAINING CAMPS, LLC, KAROLYI’S ELITE, KAROLYI WORLD GYMNASTICS INC., BELA KAROLYI, MARTHA KAROLYI, RICHARD CARLSON, and WORLD SPORT CHICAGO, Defendants. PLAINTIFF’S MEMORANDUM OF LAW IN SUPPORT OF ITS MOTION FOR A PRELIMINARY INJUNCTION Plaintiff USA Gymnastics (the “Debtor” or “USAG” or “Plaintiff”) respectfully submits its Memorandum of Law in Support of its Motion for a Preliminary Injunction staying Gedderts’ Twistars USA Gymnastics Club, Inc., Twistars USA, Inc., John Geddert, and Kathryn Geddert 1 The last four digits of the Debtor’s federal tax identification number are 7871. The location of the Debtor’s principal office is 130 E. Washington Street, Suite 700, Indianapolis, Indiana 46204. Case 19-50075 Doc 6 Filed 03/29/19 EOD 03/29/19 22:24:09 Pg 2 of 11 (collectively, the “Twistars Stay Defendants”), Donald Peters (“Peters”), Southern California Acro Team, Inc. (“SCATS”), BMK Partners LTD, BMK Training Facilities, Ltd., Karolyi Training Camps LLC, Karolyi’s Elite, Karolyi World Gymnastics Inc., Bela Karolyi, and Martha Karolyi (collectively, the “Karolyi Stay Defendants”), Richard Carlson (“Carlson”) and World Sport Chicago (“WSC” and with the Twistars Stay Defendants, Peters, SCATS, the Karolyi Stay Defendants, and Carlson, the “Stay Defendants”) from the prosecution and defense of certain lawsuits identified in the Complaint.
    [Show full text]
  • In the United States Bankruptcy Court for the Southern District of Indiana Indianapolis Division
    Case 18-09108-RLM-11 Doc 892 Filed 01/21/20 EOD 01/21/20 18:12:34 Pg 1 of 22 IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION In re: Chapter 11 USA GYMNASTICS,1 Case No. 18-09108-RLM-11 Debtor. MOTION OF THE ADDITIONAL TORT CLAIMANTS COMMITTEE OF SEXUAL ABUSE SURVIVORS FOR ENTRY OF AN ORDER PURSUANT TO 11 U.S.C. §§ 105(a), 349 AND 1112(b) DISMISSING THE BANKRUPTCY CASE AND GRANTING RELATED RELIEF The Additional Tort Claimants Committee of Sexual Abuse Survivors (the “Survivors’ Committee”), appointed in this case under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”), hereby moves this Court (the “Motion”) for entry of an order, pursuant to sections 105(a), 349, and 1112(b) of the Bankruptcy Code, dismissing the above-captioned bankruptcy case (the “Case”) of USA Gymnastics (“USAG”) and granting related relief. In support of this Motion, the Declaration of James I. Stang (the “Stang Declaration”) is attached as Exhibit A and incorporated herein. In further support of the Motion, the Survivors’ Committee respectfully states as follows: Preliminary Statement 1. Nearly five years ago, USAG/United States Olympic Committee (the “USOC”)2 Team USA gymnast Maggie Nichols reported Larry Nassar was molesting children. Since that very first day, USAG/USOC, and its revolving door of executives since, have done everything in 1 The last four digits of USAG’s federal tax identification number are 7871. The location of USAG’s principal office is 130 E. Washington Street, Suite 700, Indianapolis, Indiana 46204.
    [Show full text]
  • Nassar and Beyond: a Review of the Olympic Community's Efforts to Protect Athletes from Sexual Abuse
    Nassar and Beyond: A Review of the Olympic Community’s Efforts to Protect Athletes from Sexual Abuse Prepared by the Energy and Commerce Committee, Majority Staff December 20, 2018 energycommerce.house.gov Table of Contents I. Executive Summary ............................................................................................................... 2 II. Table of Acronyms................................................................................................................. 5 III. Findings .................................................................................................................................. 6 IV. Background ............................................................................................................................ 8 A. The United States Olympic Committee and the Ted Stevens Olympic and Amateur Sports Act ................................................................................................................................... 8 B. Sexual Abuse in the Olympic Community ..................................................................... 10 1. Efforts by the USOC and NGBs .................................................................................... 14 C. Background on the Committee’s Investigation ............................................................. 17 V. Issues Contributing to Concerns about Athlete Safety .................................................... 21 A. Culture within the Olympic Community and Focus on Reputation and Image ........ 21 1. Athlete
    [Show full text]
  • Victim Impact Statements and Corporate Sex Crimes
    Oklahoma Law Review Volume 73 | Number 1 Symposium: Drawing the Line: Modern Sexual Conflicts and the Law 2020 Victim Impact Statements and Corporate Sex Crimes Erin Sheley Follow this and additional works at: https://digitalcommons.law.ou.edu/olr Part of the Law and Gender Commons, and the Sexuality and the Law Commons Recommended Citation Erin Sheley, Victim Impact Statements and Corporate Sex Crimes, 73 OKLA. L. REV. 209 (2020), https://digitalcommons.law.ou.edu/olr/vol73/iss1/10 This Article is brought to you for free and open access by University of Oklahoma College of Law Digital Commons. It has been accepted for inclusion in Oklahoma Law Review by an authorized editor of University of Oklahoma College of Law Digital Commons. For more information, please contact [email protected]. VICTIM IMPACT STATEMENTS AND CORPORATE SEX CRIMES ERIN SHELEY* Introduction Wherever there is a position of power, there seems to be potential for abuse. I had a dream to go to the Olympics, and the things that I had to endure to get there, were unnecessary, and disgusting. A question that has been asked over and over is: How could have Larry Nassar been allowed to assault so many women and girls for more than two decades? The answer to that question lies in the failure of not one, but three major institutions to stop him -- Michigan State University, USA Gymnastics and the United States Olympic Committee. When my story became public the US Olympic Committee said, “Each doctor working with our athletes undergoes background checks including an evaluation of medical licensure actions.
    [Show full text]