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Nebraska Data Centers, LLC v. Khayet

United States District Court, D. Nebraska

April 24, 2018

NEBRASKA DATA CENTERS, LLC, Plaintiff,
v.
LEO KHAYET, Defendant.

          MEMORANDUM AND ORDER

          Cheryl R. Zwart, United States Magistrate Judge

         The above-captioned case arises from a contractual agreement between Plaintiff Nebraska Data Centers (“NDC”) and Defendant Leo Khayet. On August 8, 2017, the parties entered into a Consulting Agreement wherein Khayet agreed to assist NDC in the potential sale of the company to third parties. After a breakdown in the parties' relationship, on October 5, 2017, NDC filed its complaint requesting a declaratory judgment to determine the parties' rights and obligations under the Consulting Agreement. (Filing No. 1). The complaint alleges that after NDC had terminated the contract, Khayet insisted he had a right to perform his contractual duties and took action which caused harm to NDC and its business relationships. (Filing No. 1 at CM/ECF p. 3; Filing No. 11 at CM/ECF pp. 3-4).

         On November 2, 2017, NDC filed its amended complaint adding claims for tortious interference with a business relationship or expectancy; fraud; negligent misrepresentation; breach of contract; violations of the Junkin Act, Neb. Rev. Stat. § 59-805; unfair competition; violations of the Nebraska Uniform Deceptive Trade Practices Act, and trademark infringement. (Filing No. 11).

         This case has been subject to extensive motion practice. The following motions are currently pending before the undersigned magistrate judge:

Filing No. 82 - Defendant's Motion to Disqualify Plaintiff's Counsel and Request for Hearing and Expedited Ruling.
Filing No. 95 - Plaintiff's Motion to Show Cause.
Filing No. 93 - Defendant's Motion to Initiate Disciplinary Procedures against Plaintiff's Counsel and Request for Hearing and Expedited Ruling.
Filing No. 105 - Defendant's Motion to Strike and Substitute.
Filing No. 115 - Defendant's Motion for Extension of Time to File Reply Brief In Support of Defendant's Motion to Initiate Disciplinary Procedures.
Filing No. 116 - Defendant's Motion to Strike and Substitute.
Filing No. 117 - Defendant's Motion to Strike and Substitute.
Filing No. 119 - Defendant's Motion to Compel Preservation of Documents.
Filing No. 125 - Defendant's Motion to Hold a Status Conference.
Filing No. 126 - Defendant's Motion to Hold Scheduling Conference.
Filing No. 127 - Defendant's Motion for Case Management Conference.
Filing No. 131 - Plaintiff's Motion to Strike.
Filing No. 134 - Defendant's Motion to Strike.
Filing No. 137 - Defendant's Motion to Restrict.
Filing No. 139 - Defendant's Motion to Strike.

         I. Plaintiff's Motion to Show Cause (Filing No. 95).

         First and foremost, the undersigned needs to address Plaintiff's Motion to show cause. (Filing No. 95). NDC has moved for an order requiring Benjamin Stern to show cause why he should not either: (1) associate with local counsel and enter a formal appearance before this Court; or (2) cease his participation in this case. (Id.). Stern, an attorney admitted to practice before the United States District Court for the Southern District of New York and the United States District Court for the Eastern District of New York, has been assisting pro se defendant Khayet in the preparation of his motions and briefs in this matter as well as directly emailing Plaintiff's counsel on the defendant's behalf. (See Filing No. 83 at CM/ECF pp. 12, 22; Filing No. 118-1 at CM/ECF p. 2; Filing No. 120). Stern is not admitted to practice before this court nor has he sought to enter an appearance in this case.

         The court has determined that it will not enter an order requiring Stern to show cause. However, since Khayet has an attorney assisting him, his filings will not receive the ...


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