Case 1 :05-cv-00072-JJF Document 13 Filed 04/15/2005 Page 1 of 3
A O & P R Veronica E. Rendon
399 Park Avenue
New York, NY 10022-4690
April 15, 2005 5
VIA HAND DELIVERY
Honorable Joseph J. Faman, Jr.
United States District Court
District of Delaware
J. Caleb Boggs Federal Building
844 N. King Street
Room 4124, Lockbox 27
Wilmington, DE 19801
Re: Charles A. Stanziale, Jr., Chapter 7 Trustee of Student Finance Corp.
v. McGladrey & Pullen LLP, et al., Case N0. 05-72-JJ F
Dear Judge Faman:
We represent McGladrey & Pullen LLP and Michael Aquino in the above case.
We write in response to the letter filed with the Court yesterday, April 14, 2005, by
Donald Crecca, counsel for Charles A. Stanziale, the Chapter 7 Bankruptcy Trustee for
Student Finance Corporation.
In his letter, Mr. Crecca requests a joint status conference in order to obtain a
coordinated case management plan in this and a number of other related actions. We do
not oppose that request. We do, however, want to bring a number of events and
observations to the Court’s attention which we ask the Court to consider in formulating a
coordinated case management plan.
As your Honor knows, on March 1, 2005, McGladrey & Pullen and Mr. Aquino
moved to dismiss the Trustee’s complaint in the above action. In connection with that
motion, we came to an agreement with the Trustee with respect to a briefing schedule.
Pursuant to that schedule, the Trustee is due to respond to the motion today, April 15,
2005. (Originally, the Trustee was due to respond on April l, 2005; however, we agreed
to extend that date as a matter of professional courtesy.) McGladrey and Mr. Aquino are
due to submit their reply brief on May 10, 2005, at which time the motion will be fully
submitted and ready for argument to be scheduled. We understand that the Trustee plans
on filing and serving his opposition papers today.
Given our desire to have that motion progress, we respectfully request that any
case management order entered into by the Court keep the stipulated schedule between
the Trustee, McGladrey and Mr. Aquino intact.
Case 1:05-cv-00072-JJF Document 13 Filed O4/15/2005 Page 2 of 3
ARNOLD Si PORTER LLP
Honorable Joseph J. Faman, Jr. E
April 15, 2005
Secondly, we note that, on April 12, 2005, McGladrey, Mr. Aquino and Freed
Maxick & Battaglia CPAs PC, another accounting defendant in Royal Indemnity Co. v.
Pepper Hamilton LLP, et al., Index No. C.A. O5CV00165 (J J F), entered into a stipulation
with Royal. That case, which is also pending in front of your Honor, is one of the related
actions referenced in Mr. Crecca’s letter. In the April 12 stipulation, Royal agreed to
allow McGladrey, Mr. Aquino and Freed Maxick up to and including May 27, 2005 to
tile an answer or other responsive pleading to Royal’s complaint. Although not included
in the stipulation, counsel for Royal also agreed to allow additional time thereafter to the
stipulating defendants to answer or more if they so required.
We ask that any case management order entered by the Court be consistent with
this prior agreement. Earlier this week, Royal filed an amended complaint in which it
added an additional civil RICO claim against Mr. Aquino and Roderick Gagné, another
individual defendant. Thus, our need for additional time to respond to the complaint is
that much more necessary.
As in the Trustee’s action, McGladrey and Mr. Aquino intend to file a motion to
dismiss the Royal complaint. We believe that scheduling anything else beyond the
briefing of defendants’ motions to dismiss in either litigation would be premature at this
time. The Trustee’s and Royal’s complaints may be dismissed, and the parties should not
have to expend any additional time or incur any additional expense prior to determination
of those motions. This is another factor we ask the Court to consider in entering a case
management order in these actions.
We are of course happy to answer any questions the Court may have.
Case 1:05-cv-00072-JJF Document 13 Filed O4/15/2005 Page 3 of 3
ARNOLD & PORTER LLP
Honorable Joseph J. Farnan, Jr.
April 15, 2005
cc: Charles A. Stanziale, Jr., as Chapter 7 Trustee
John A. Bicks, Esq.
Donald J. Crecca, Esq.
J effrey T. Testa, Esq.
Stephen J. Shapiro, Esq.
Dawn M. Jones, Esq.
Tiffany Geyer, Esq.
John I. Grossbart, Esq.
Alan Gilbert, Esq. g
Sheryl Auerbach, Esq.
Jim Rodgers, Esq.
Andre G. Castybert, Esq.
John W. Shaw, Esq.
Joseph H. Huston, Esq.
David Pittinsky, Esq.
Kevin R. Shannon, Esq.
Neil Epstein, Esq.
Karen Turner, Esq.
Bruce Haines, Esq.