Not even a bankruptcy and a temporary limiting order can keep Hulk Hogan and Gawker from continuing to battle with each other.
On June 10, after a Florida judge handed downa $140 million last judgment in favor of Hulk Hogan in the invasion-of-privacy claim over the publishing of a sex tape, Gawker Media submitteddeclared Chapter 11 bankruptcy. The media company also brought a foe case versus its legal foes as part of an effort to hold back Hogan and possibly ward off an individual bankruptcy for Gawkers founder and owner Nick Denton.
Fortunately for Denton, upon some urging from the bankruptcy judge, the 2 sides had the ability to specify to a momentary limiting order that prevents Hogan from gathering on the $10 million for which Denton is personally liable. Otherwise, Hogan may move to seize possessions or enforce liens that might interfere withGawkers consider to move ahead with an auction of the business that is being led by stalking horse bidder Ziff Davis. Gawker has actually told the court that Denton shouldnt be sidetracked by this.
However despite the TRO, Hogan is not precisely stalling. In advance of a July 13 hearing on a preliminary injunction and extension of an automatic stay, the former expert wrestlers lawyers have actually been pursuing obtaining discovery.
According to filings on Tuesday, Hogan wants Denton to send to a deposition. Hogan also wants access to files consisting of ones exchanged in between Gawkers financial investment bank and the 6 prospective stalking horse bidders beforeZiffDavis emerged.
Hogan lawyer Eric Fisher informs Judge Stuart Bernstein that the Gawker camp is stonewalling on identifying the witnesses to be called at the evidentiary hearing plus more.
As to Denton, according to a letter to the judge, Hogan asked Gawkerto state the reasonsreasons Denton is indispensableto the formulation, settlement and application of Gawkers reorganization strategy. Due to the fact that … [Gawkers movement seeking an injunction] is premised mostly on its contention that Mr. Denton can not be sidetracked from helping with Debtors reorganization, it is definitely relevant to know why Mr. Denton is so indispensable.
Hogan even more wants Dentons calendar to examine just how much time Mr. Denton] has devoted and is preparing to devote to the bankruptcy and compare that to his time spent on other matters and states that documents pertaining to the companies or people who may have had interest in bidding for Gawker might expose the relative roles in between Mr. Denton and Houlihan [Lokey] in securing those quotes and working out any term sheets.
The judge is also being asked to intervene in a demand by Hogan for any indemnification arrangement in between Gawker and AJ Daulerio, the previous editor who wrote the sex tape post and was found by the Florida court to be personally responsible for $100,000. Hogan is also demanding depositions from chief reorganizing policeman William Holden and Gawker president and basic counsel Heather Dietrick.
The effort belongs to Hogans transfer to oppose the initial injunction and potentially progress in collection efforts against Denton. According to the letter, Each of these witnesses will have the ability to provide statement concerning their roles in the bankruptcy proceeding, which will permit the celebrations and the Court to better assess whether Mr. Denton is certainly so important to the formula, negotiation and execution of the plan, that he can not be distracted by other litigation.
UPDATE: Gawkers counsel says in a response letter to the judge that it has no problem producing indemnity arrangements and other non-privileged files, however that event and reviewing more in the middle of an effort to sell the company is difficult.
According to the letter, Mr. Bolleas expedited discovery requests are specifically the kind of concern and diversion the Motion looks for to avoid in actions beyond this Foe Proceeding. It is equally as essential to avoid them within the Enemy Proceeding. That is especially so now givenconsidered that, as the Court has recognized, Gawker Media ought to be focused on the impending sale of its assets.
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