World Award Foundation v. An Bang Insurance Group Co. Ltd.

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE
WORLD AWARD FOUNDATION, et al., )
)
Plaintiffs, )
) Consolidated
v. ) C.A. No. N19J-05055
)
AN BANG INSURANCE GROUP )
CO., LTD., et al., )
)
Defendants. )
Date Submitted: February 28, 2020
Date Decided: June 9, 2020
ORDER
Upon consideration of the Motion to Withdraw of Stamatios Stamoulis and
Stamoulis & Weinblatt LLC (“Movants”),1 Defendant Anbang Insurance Group Co.,
Ltd.’s (“Dajia”) Opposition thereto, 2 statutory and decisional law, and the record in
this case, IT APPEARS THAT:
1. Movants initiated six judgment enforcement actions in the Superior
Court on behalf of Plaintiffs World Award Foundation Inc., Amer Group LLC, An
Bang Group LLC, and AB Stable Group LLC (collectively, “Plaintiffs”) based on a
purported Court of Chancery judgment.3 Those six actions are captioned World
1
Mot. Withdrawal (Trans. ID. 64642344); Reply Br. (Trans. ID. 64649799).
2
Opp’n (Trans. ID. 64647614).
3
See World Award Found., Inc., et al. v. Anbang Ins. Grp. Co., Ltd., et al., C.A. No. 2019-0605-
JTL (the “Court of Chancery Action”).
Award Found. v. An Bang Ins. Grp. Co. Ltd., No. N19J05055, filed October 24,
2019; World Award Found. v. An Bang Ins. Grp. Co. Ltd., No. N19J-05253, filed
November 1, 2019; World Award Found. v. An Bang Ins. Grp. Co. Ltd., No. N19J-
05458, filed November 8, 2019; World Award Found. v. An Bang Ins. Grp. Co. Ltd.,
No. N19J-05868, filed December 10, 2019; World Award Found. v. An Bang Ins.
Grp. Co. Ltd., No. N19J-06026, filed December 16, 2019; and World Award Found.
v. An Bang Ins. Grp. Co. Ltd., No. N19J-06027, filed December 16, 2019
(collectively, the “Six Delaware Superior Court Actions”). 4
2. On January 15, 2020, the Court of Chancery issued an order stating that,
“[n]o arbitration award or judgment involving any of [Plaintiffs] has been entered,
confirmed or deemed confirmed by [the Court of Chancery].”5 Because Plaintiffs
used the purported Court of Chancery judgments to enforce judgment in the Six
Delaware Superior Court Actions, the Court of Chancery’s Order requested that the
Prothonotary or presiding judge of the Delaware Superior Court “vacate any and all
purported judgments in the Six Delaware Superior Court Actions (including any
such judgments appearing on the judgment docket).” 6
4
By Order dated February 10, 2020, the Court consolidated the Six Superior Court Actions into
C.A. No. N19C-05055 JRJ (Trans. ID. 64708689).
5
Court of Chancery Action (Trans. ID. 64623508).
6
Id.
2
3. On January 21, 2020, having considered the January 15, 2020 Court of
Chancery Order, this Court entered an order vacating “any and all purported
judgments” in the Six Delaware Superior Court Actions pursuant to Superior Court
Civil Rule 60(b)(3).7
4. That same day, Movants moved to withdraw as counsel for Plaintiffs
(the “Motions to Withdraw”) in the Six Delaware Superior Court Actions. The
Motions to Withdraw are substantially identical to Movants’ Motion to Withdraw
filed in the Court of Chancery Action,8 which Vice Chancellor Laster granted in part,
allowing a partial withdrawal subject to certain conditions.9 Having determined
there was “reason to believe that Movants may have assisted [Plaintiffs] in carrying
out their fraud” and “reason for concern that [Plaintiffs were] foreign companies
who [did] not intend to participate in [the] proceedings or to comply with any orders
from the court,” the Court of Chancery required Movants to remain as counsel of
record for the sole purpose of acting as an “informational intermediary” between
Plaintiffs and Defendants.10
5. On May 12, 2020, Vice Chancellor Laster determined that the utility of
Movants’ role as an informational intermediary no longer served its purpose, and
7
Order Vacating Judgments (Trans. ID. 64642345).
8
Court of Chancery Action (Trans. ID. 64581513).
9
Court of Chancery Action, Jan. 8, 2020 Order (Trans. ID. 64597121).
10
Id. ¶¶ 4–5, 9.
3
entered an order relieving Movants of their status as an informational intermediary
between Plaintiffs and Defendants.11
6. Movants seek to withdraw as Plaintiffs’ counsel in the Six Delaware
Superior Court Actions because: (1) Plaintiffs terminated Movants as their counsel
on January 7, 2020;12 (2) Movants have had difficulty communicating with
Plaintiffs;13 and (3) Movants’ representation of Plaintiffs could potentially violate
the Rules of Professional Conduct. 14
7. Having assisted Plaintiffs by filing the judgments, Movants argue they
now have a conflict of interest. To the extent that Movants wish to defend their own
interests by showing that they acted innocently and relied on their clients, their
interests are adverse to those of their clients. Movants have established grounds to
withdraw under Delaware Lawyers’ Rules of Professional Conduct 1.2(d) and 1.16.
However, the threat of prejudice to Dajia and the interests of justice require that
withdrawal be granted on certain conditions.
8. Therefore, the Motion to Withdraw is GRANTED subject to the
following conditions:
11
Court of Chancery Action, May 12, 2020 Order ¶¶ 5–6 (Trans. ID. 65631715) (explaining that
the Defendants now have the contact information for the forwarding counsel who retained
Movants as Delaware counsel and Movants have provided discovery to Defendants about their
communications with Plaintiffs).
12
January 29, 2020 Hearing Transcript (“Hr’g Tr.”) 8:19-22 (Trans. ID. 64688985).
13
Hr’g Tr. 28:8-14, 28:23-29:1-5.
14
Mot. Withdrawal ¶ 3; Reply Br. ¶ 17.
4
a. Movants are relieved of all obligations as counsel of record to
Plaintiffs.
b. Movants shall remain involved in the case for the purposes of:
(i) responding to any discovery directed to Movants on their own behalf; and (ii)
responding to any motions or other filings (including those issued sua sponte by the
Court) directed to Movants on their own behalf. Movants shall arrange to be
identified as interested parties for purposes of eFiling in this action.
c. Movants shall provide Plaintiffs with a copy of this Order.
d. To the extent not already provided in the Court of Chancery
Action, Movants shall provide Dajia with the current mailing address(es) and contact
information of Plaintiffs.
e. Plaintiffs shall retain successor counsel who shall enter an
appearance in this action by July 9, 2020.15 If successor counsel does not enter an
appearance by that date, Plaintiffs shall be in default for failure to appear for
purposes of Superior Court Civil Rule 5(a).
f. For so long as Plaintiffs are in default for purposes of Rule 5(a),
service may be made upon Plaintiffs in this action by any of the following methods:
(i) by mail, with such service to be effective upon mailing, (ii) by email to
15
On February 25, 2020, Movants informed the Court that Plaintiffs retained successor counsel
who is performing diligence to determine if it will appear in this action on behalf of Plaintiffs.
(Trans. ID. 64758420).
5
Steve@nielsenpatents.com and mikemartintiger@gmail.com, with service to be
effective upon the sending of such email, or (iii) pursuant to 8 Del. C. § 321, 10 Del.
C. § 3111, and/or 6 Del. C. § 18-105.
IT IS SO ORDERED.
Jan R. Jurden
Jan R. Jurden, President Judge
cc: Prothonotary
6