Today's BK hearing: $100k for mobility; Rule 50(b) motion coming
Al Petrofsky
Group, Inc. (f/k/a Caldera International, Inc), No. 07-bk-11337,
Bankr. D. Del.. (See http://scofacts.org/bankruptcy.html for a link
to a docket listing with links to copies of everything that has been
filed with the court.)
(These notes are rough and incomplete, and almost certainly erroneous
in some parts. They come with NO WARRANTY OF FITNESS FOR ANY PURPOSE.
For reliable information, listen to the audio recording, which may be
purchased from the court now, and will probably become freely
available at scofacts.org in a week or two.)
15:01 -0400 Please Rise
Bonnie Fatell: Before the matter on the agenda, Mr. Cahn will make a
presentation.
Edward Cahn: This is another interim report to your Honor. On
Tuesday, March 30, a jury determined that SCO doesn't own the
copyrights.
I had previously reported to you that SCO's chances were "fifty
percent".
(I don't actually remember him ever being so crazy as to mention
"fifty percent", but that's what he copped to today.)
I was in Salt Lake, I received daily transcripts.
We were well-prepared. Case was very competently presented by both
sides.
The evidence in my view preponderated a victory for SCO. Courtroom
observers expected a SCO victory. Before the verdict, the judge
granted our motion for judgment on Novell's claim, and denied Novell's
motion for judgment on our claim.
We will be revising our recommendations based on coming rulings.
We will be making a Rules 50(b) and 59 motion for judgment
notwithstanding the verdict, or, in the alternative, for a new trial.
(Note: this motion is due April 27, per Fed. R. Civ. P. Rule 50(b)
(which was just modified in December, roughly doubling the allowed
period for filing such motions after a verdict (the period changed
from 10 business days to 28 calendar days)).)
Judge Stewart is prompt, so we expect rulings within the next several
months.
Proposed findings of fact and conclusions of law are due April 15.
Judge Stewart said at the close of the case: In the ten years I have
been a judge, I have never had such a group of fine attorneys in the
room at one time. ... You have acquitted yourselves extraordinarily
well.
Although we lost, I remain of the opinion that the claims have merit
and the recommendation to pursue the claims aggressively was sound.
15:05 Fatell:
Restructuring is continuing. We expect SCO will continue to operate
and liquidate in an orderly manner.
Still assessing Novell and IBM litigation.
Mobility sale: Received bids. Had an auction on April 5. Me Inc
Holdings, LLC won at $100k, up from $35k.
15:07 Fatell's proffer of testimony from Fisler:
(Describes marketing efforts history, initially as covered in Fisler's
declaration)
After filing motion, received a letter of intent and deposit from
Mobile Business Solutions.
MBS wanted to buy the intellectual property, rather than just license
it, as Me Inc Holdings had proposed. We decided it was best to change
the deal to a sale, and we set a minimum bid of $100k.
Held telephonic auction, with court reporter. At auction, Me Inc
Holdings bid the minimum and MBS declined to bid.
15:11 Judge Gross: Any other parties want to be heard? (no takers)
Fatell on changes: no income participation, straight cash sale. SCO
gets license-back for internal use.
Closing is this Friday, April 9. Transfer concludes within 30 days.
15:13 Judge: I'm satisfied by the proffer. Auction is the best test
of value. It's in best interest of the estate. I approve.
Fatell: The order only has minor changes. The major changes are in
the revised agreement, which we will file upon the closing.
15:14 (order signed)
Judge: Oh hi, McMahon. Haven't seen you in awhile.
15:15 Please Sink
b...@entropy.tmok.com
b...@entropy.tmok.com
>minutes of hearing
Y'know, I never said thanks before. Thanks for keeping up with this case
for so long and being a thorn in the side of SCO.
Your work is appreciated.
:-D
--
BMO
b...@entropy.tmok.com
--
BMO
Brent Stone
Seconded.