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LOWENSTEIN SANDLER LLP Michael S. Etkin, Esq. Terri Jane Freedman, Esq. One Lowenstein Drive Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Counsel to Sandra Perison and Donald Perison UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY In re USI SERVICES GROUP, INC., et al. Debtors. Chapter 11 Case No: 18-10153 (JKS) Jointly Administered Hearing Date: June 26, 2018 at 10:00 a.m. Objection Deadline: June 19, 2018 at 4:00 p.m. Oral Argument Requested if Opposition Filed NOTICE OF MOTION FOR AN ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY TO PROCEED WITH STATE COURT ACTION CONCERNING PERSONAL INJURY CLAIMS ONLY TO THE EXTENT OF ANY APPLICABLE INSURANCE PLEASE TAKE NOTICE that on June 26, 2018 at 10:00 a.m., or as soon thereafter counsel may be heard, Sandra Perison and Donald Perison (collectively the “Plaintiffs”), by and through their attorneys, Lowenstein Sandler LLP, hereby move pursuant to 11 U.S.C. § 362 for relief from the automatic stay to allow the Plaintiffs to continue with a state court action concerning personal injury claims to the extent of any applicable insurance (the “Motion”) before the Honorable John K. Sherwood, United States Bankruptcy Court District of New Jersey, 50 Walnut Street, Courtroom 3D, Newark New Jersey 07102. PLEASE TAKE FURTHER NOTICE that, in the event that timely objections are not filed with the Court and served upon the undersigned counsel as provided in D.N.J. L.B.R.9013- 1(a) and (f), the relief requested shall be deemed uncontested and the Court may, in its discretion, grant the requested relief. Case 18-10153-JKS Doc 181 Filed 05/22/18 Entered 05/22/18 10:41:49 Desc Main Document Page 1 of 2

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LOWENSTEIN SANDLER LLP Michael S. Etkin, Esq. Terri Jane Freedman, Esq. One Lowenstein Drive Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Counsel to Sandra Perison and Donald Perison

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

In re USI SERVICES GROUP, INC., et al.

Debtors.

Chapter 11 Case No: 18-10153 (JKS) Jointly Administered Hearing Date: June 26, 2018 at 10:00 a.m. Objection Deadline: June 19, 2018 at 4:00 p.m. Oral Argument Requested if Opposition Filed

NOTICE OF MOTION FOR AN ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY TO PROCEED WITH STATE COURT ACTION

CONCERNING PERSONAL INJURY CLAIMS ONLY TO THE EXTENT OF ANY APPLICABLE INSURANCE

PLEASE TAKE NOTICE that on June 26, 2018 at 10:00 a.m., or as soon thereafter

counsel may be heard, Sandra Perison and Donald Perison (collectively the “Plaintiffs”), by and

through their attorneys, Lowenstein Sandler LLP, hereby move pursuant to 11 U.S.C. § 362 for

relief from the automatic stay to allow the Plaintiffs to continue with a state court action

concerning personal injury claims to the extent of any applicable insurance (the “Motion”)

before the Honorable John K. Sherwood, United States Bankruptcy Court District of New Jersey,

50 Walnut Street, Courtroom 3D, Newark New Jersey 07102.

PLEASE TAKE FURTHER NOTICE that, in the event that timely objections are not

filed with the Court and served upon the undersigned counsel as provided in D.N.J. L.B.R.9013-

1(a) and (f), the relief requested shall be deemed uncontested and the Court may, in its

discretion, grant the requested relief.

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PLEASE TAKE FURTHER NOTICE that any answering papers or objections to the

Motion must be filed and served at least seven (7) days before the return date of this Motion. If

you wish to object to this Motion, you must file responding papers stating with particularity the

basis of your objection to the motion. All such responsive papers must be filed with the Clerk of

the Bankruptcy Court for the District of New Jersey, located at 50 Walnut Street, Newark, New

Jersey, and served simultaneously upon, Plaintiffs’ counsel Lowenstein Sandler, LLP, Attn:

Michael S. Etkin, Esq. and Terri Jane Freedman, Esq., One Lowenstein Drive, Roseland, New

Jersey 07068; and

PLEASE TAKE FURTHER NOTICE that oral argument is only requested if the

motion is contested or so directed by the Court; and

PLEASE TAKE FURTHER NOTICE that this matter does not involve complicated

issues of law or fact and therefore no brief is necessary.

Dated: May 22, 2018 Respectfully submitted,

LOWENSTEIN SANDLER LLP

/s/ Michael S. Etkin Michael S. Etkin, Esq. Terri Jane Freedman, Esq. One Lowenstein Drive Roseland, New Jersey 07068 (973) 597-2500 (Telephone) (973) 597-2400 (Facsimile) [email protected] [email protected] Counsel to Sandra Perison and Donald Perison

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LOWENSTEIN SANDLER LLP Michael S. Etkin, Esq. Terri Jane Freedman, Esq. One Lowenstein Drive Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Counsel to Sandra Perison and Donald Perison

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

In re USI SERVICES GROUP, INC., et al.

Debtors.

Chapter 11 Case No: 18-10153 (JKS) Jointly Administered Hearing Date: June 26, 2018 at 10:00 a.m. Objection Deadline: June 19, 2018 at 4:00 p.m. Oral Argument Requested if Opposition Filed

APPLICATION IN SUPPORT OF MOTION FOR AN ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY TO PROCEED WITH STATE COURT ACTION CONCERNING PERSONAL INJURY CLAIMS ONLY TO THE EXTENT OF ANY

APPLICABLE INSURANCE

Sandra Perison (“S. Perison”) and Donald Perison (collectively the “Plaintiffs”), by and

through their attorneys, Lowenstein Sandler LLP hereby move this Court for the entry of an

Order, substantially in the form attached hereto, granting relief from the automatic stay to

proceed with state court action concerning personal injury claims only to the extent of applicable

insurance (the “Motion”), and respectfully states as follows:

JURISDICTION AND VENUE

1. This Court has jurisdiction to hear and decide the Motion pursuant to 28 U.S.C.

§§ 157 and 1334. The statutory basis for the relief requested includes 11 U.S.C. § 362 and Rules

4001 and 9014 of the Federal Rules of Bankruptcy Procedure. This matter is a core proceeding

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pursuant to 28 U.S.C. § 157(b)(2)(G). Venue is proper before this Court pursuant to 28 U.S.C. §§

1408 and 1409.

THE PARTIES

2. On January 3, 2018 (the “Petition Date”), the Debtors filed their voluntary

petition for relief under Chapter 11 of the Bankruptcy Code. On January 5, 2018, the Court

entered an order jointly administering the Debtors’ cases for procedural purposes.

3. On information and belief, the Debtors continue to operate its business and

remains in possession of its property.

4. As set forth below, the Plaintiffs are interested parties to this proceeding as they

have claims against the Debtors based upon facts arising pre-petition.

BACKGROUND1

5. Prior to the Petition Date on or about April 26, 2009, S. Perison was at the

McKinley Mall in Blasdell, New York in a J.C. Penney store. While in the customer restroom, she

slipped and fell due to the presence of water on the floor. As a result of the fall, S. Perison

seriously injured both her left wrist and left knee, and has had multiple surgeries as a result of her

injures. S. Perison’s injuries are permanent and progressive, and have continued to adversely

impact her activities of daily living.

6. On or about April 2, 2012, the Plaintiffs filed a complaint in New York State

Supreme Court, Erie County in an action captioned Perison v. J.C. Penney, et al., Index No.

I2012/1258, against various defendants, including the Debtors, seeking damages for S. Perison’s

injuries (the “State Court Action”). See complaint in the State Court Action attached as Exhibit A

to the Certification of Terri Jane Freedman, Esq. (the “Freedman Cert.”) filed herewith.

7. Since the Petition Date, the Plaintiffs’ matter has been stayed as a consequence of

the automatic stay provisions set forth in 11 U.S.C. Sec. 362 (a). This has precluded the Plaintiffs

from moving forward in their lawsuit against Debtors.

8. The parties have been litigating this matter for six (6) years. A trial date of April

20, 2018 has been adjourned without date as a result of the filing of the Chapter 11 petitions.

1The following is provided by way of general summary only. For further discussion of the incident, please see Exhibit A to the Freedman Cert., defined infra.

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9. Upon information and belief, the Debtors are covered by an insurance policy

applicable to the Plaintiffs’ claims (the “Insurance Policy”).2 See Lexington Insurance Company

Insurance Declaration Pages attached as Exhibit B to the Freedman Cert. Upon further

information and belief, the Debtors’ Insurance Policy limit for personal injury matters is

$1,000,000 per incident.

10. The Insurance Policy likely exceeds any recovery that Plaintiffs would obtain

following trial of the State Court Action, and the Plaintiffs are solely seeking payment of their

claims against Debtors from the insurance provider, not directly from the Debtors. Further, in the

event excess liability insurance is maintained, Plaintiffs reserve the right to seek recovery against

such policy as well.

11. Accordingly, the Debtors’ potential liability to the Plaintiffs is covered by the

Insurance Policy and will not prejudice other creditors of the estates.

STATEMENT OF RELIEF REQUESTED

12. By this Motion, the Plaintiffs seek relief from the automatic stay so that they may

continue to pursue a judgment or other resolution and satisfy any judgment or other resolution

they may obtain against the Debtors.

LEGAL ARGUMENT

13. The automatic stay is designed to: (1) effectively stop all creditor collection

efforts; (2) stop all harassment of a debtor seeking relief, and (3) maintain the status quo between

the debtor and its creditors. In re Mu'min, 374 B.R. 149 (Bankr. E.D. Pa. 2007)(citation omitted).

14. Section 362(d)(1) requires the Court to grant a party’s request for relief from the

automatic stay:

(1) for cause, including the lack of adequate protection of an

interest in property of such party in interest…

Section 362(d)(1).

15. “Cause” is an intentionally broad and flexible concept, which must be determined

on a case-by- case basis. In re Brown, 311 B.R. 409, 412–13 (Bankr. E.D.Pa. 2004). “Under

362(d)(1), bankruptcy courts have routinely granted relief to permit personal injury plaintiffs to

prosecute their claims in state court and to limit their collection efforts to the available insurance

2 Upon information and belief, two other defendants in the State Court Case, J.C. Penney and Johnson Controls, also maintain insurance policies applicable to Plaintiffs’ claims.

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benefits.” In re Glunk, 342 B.R. 717, 740 (Bankr. E.D. Pa. 2006). “The rationale for granting

relief from the automatic stay for this purpose is that the prejudice to the Debtors, who may suffer

modest or even no adverse financial consequences but may only have to expend some time and

effort in cooperating with his insurer in the defense of the litigation, is outweighed by the

prejudice to the creditor who ability to prosecute the action and reach the insurance benefits may

be undermined by the aging of evidence, loss of witnesses, and crowed court docket” In re Glunk,

342 B.R. at 740.

16. Likewise, “Judge DeVito, sitting in the United States Bankruptcy Court for the

District of New Jersey, has noted that, [t]he Court of Appeals for the Third Circuit has declared

that litigation expenses do not constitute an injury sufficient to justify the enjoining of litigation

against a Debtor.” In re Todd Shipyards Corp., 92 B.R. 600, 603 (Bankr. D.N.J. 1988)(holding

personal injury claimants were permitted to proceed with state lawsuit against the Debtors. Stay

relief was granted); see also In re Patriot Contracting Corp., 05-33190 DHS, 2006 WL 4457346,

(Bankr. D.N.J. May 31, 2006). “[P]ersonal injury tort claims must be tried in a forum other than

this [Bankruptcy] Court“. In re Todd Shipyards Corp., 92 B.R. at 604.

17. A court may consider the policies reflected in the Bankruptcy Code, and the

interests of the Debtors, other creditors and any other interested parties. In determining whether to

grant relief from the automatic stay courts so as to permit a party in interest to continue

prosecuting a matter in another forum, courts will often rely upon the following factors:

1) whether relief would result in a partial or complete resolution of the issues; 2) lack of any connection with or interference with the bankruptcy case; 3) whether the other proceeding involves the Debtors as a fiduciary; 4) whether a specialized tribunal with the necessary expertise has been established to hear the cause of action; 5) whether the Debtors’ insurer has assumed full responsibility for defending it; 6) whether the action primarily involves third parties; 7) whether litigation in another forum would prejudice the interests of other creditors; 8) whether the judgment claim arising from the other action is subject to equitable subordination; 9) whether the moving party's success in the other proceeding would result in a judicial lien avoidable by the Debtors; 10) the interests of judicial economy and the expeditious and economical resolution of litigation; 11) whether the parties are ready for trial in the other proceeding; and 12) impact of the stay on the parties and the balance of the harms.

In re Mid-Atlantic Handling Systems, LLC, 304 B.R. 111, 130 (Bankr. D.N.J. 2003).

18. The most relevant factors in this case are one (whether relief would result in a

partial or complete resolution of the issues), two (lack of any connection with or interference with

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the bankruptcy case), four (whether a specialized tribunal with the necessary expertise has been

established to hear the cause of action), five (whether the Debtors’ insurer has assumed full

responsibility for defending it), seven (whether litigation in another forum would prejudice the

interests of other creditors), ten (the interest of judicial economy and expeditious and economical

resolution of litigation), eleven (whether the parties are ready for trial in the other proceeding, and

twelve (impact of the stay on the parties and the balance of the harms) as relevant factors.

Resolution of issues: Pursuant to case law within the District of New Jersey, personal injury lawsuits must be tried in a forum other than the Bankruptcy Court. The parties have been litigating this personal injury claim since April 2, 2012. The trial date of April 20, 2018 has been adjourned without date as a result of the Debtors’ bankruptcy petition. It is unquestionable that granting stay relief would permit this personal injury action to proceed toward resolution of all issues. The Plaintiffs are ready and willing to move forward and resolve the State Court Action. Accordingly, factor one weighs in favor of granting stay relief.

Lack of Interference: The State Court Action has little connection to the Debtors’

bankruptcy action and will have no effect on the Debtors’ reorganization efforts. The Debtors maintain an insurance policy to defend and satisfy any subsequent personal injury judgments under the insurance policy. As many as 6 or 7 other personal injury claimants have either been granted relief from the stay, or have similar motions pending. Accordingly, factor two weighs in favor of granting stay relief.

Specialized Tribunal: The Supreme Court of New York, Erie County maintains

the expertise to manage this personal injury matter, whereby that court routinely handles personal injury cases. In fact, the parties have been litigating this matter for over six (6) years and therefore the Court should direct this matter back to the state court to proceed with trial. Accordingly, factor four weighs in favor of granting stay relief.

Insurer Assume Full Responsibility: The Debtors’ insurance policy limits for this

personal injury matter is $1,000,000 per incident. The insurance policy likely exceeds any recovery that Plaintiffs would obtain following trial, and the Plaintiffs are solely seeking payment of their claims from the insurance provider, not the Debtors. Accordingly, factor five weighs in favor of granting stay relief.

No prejudice to other creditors: No prejudice would result from granting stay

relief so the personal injury matter can proceed to trial. If the Court denied stay relief however, substantial prejudice would exist to other creditors as the Plaintiffs would seek a judgment against the estate. It is in the estate’s best interest that the Plaintiffs recover from the Debtors’ insurance carrier in state court. Accordingly, factor seven weighs in favor of granting stay relief.

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Judicial Economy: Because the parties have been litigating this personal injury matter in state court since April, 2012, there is no rational basis to re-litigate these matters in the bankruptcy court and cause greater expense to the Debtors’ bankruptcy estate and the Plaintiffs. Accordingly, factor ten weighs in favor of granting stay relief.

Trial Readiness: Trial of this personal injury matter was scheduled for April 20,

2018, but was subsequently stayed due to the pending bankruptcy action. The parties are ready to continue litigation. Accordingly, factor eleven weighs in favor of granting stay relief.

Balance of Harms: As previously cited, “[u]nder 362(d)(1), bankruptcy courts

have routinely granted relief to permit personal injury plaintiffs to prosecute their claims in state court and to limit their collection efforts to the available insurance benefits.” In re Glunk, 342 B.R. at 740. Accordingly, factor twelve weighs in favor of granting stay relief.

19. The balance of equities and case law favors the Plaintiffs, whereby: (1) The

Plaintiffs are not seeking payment from the Debtors, but instead only its insurance carrier; (2) The

Debtors maintain insurance in the sum of $1,000,000.00 from which the Plaintiffs can collect; and

(3) The parties in the state court action have been litigating for six (6) years. Therefore, the

Plaintiffs respectfully requests that the Court grant the Motion for the purpose of continuing state

court litigation and seeking payment solely from the Debtors’ insurance carrier.

WAIVER OF 14 DAY STAY

20. Pursuant to Fed. R. Bankr. P. 4001(a)(3), unless the Court orders otherwise,

orders granting motion for relief from an automatic stay of the Bankruptcy Code are

automatically stayed for fourteen (14) days after entry of the order. The Plaintiffs respectfully

requests that the Court waive the 14 stay.

NOTICE

21. Notice of this Motion is being provided to the following parties: (i) counsel to the

Debtors; (ii) counsel to the secured parties; (iii) the Office of the United States Trustee for the

District of New Jersey; (iv) counsel to Lexington Insurance Company; and (v) all parties who

have filed and served a Notice of Appearance. The Debtors submit that no other or further notice

is required. No previous motion for the relief sought herein has been made to this or to any other

court.

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CONCLUSION

For the forgoing reasons, the Plaintiffs respectfully request that the Court grant the

Motion for the purpose of continuing the State Court Litigation and seeking payment only to the

extent of any applicable insurance.

Dated: May 22, 2018

Respectfully submitted,

LOWENSTEIN SANDLER LLP By: /s/ Michael S. Etkin Michael S. Etkin, Esq. Terri Jane Freedman, Esq. Lowenstein Sandler LLP One Lowenstein Drive Roseland, New Jersey 07068 (973) 597-2500 (Telephone) (973) 597-2400 (Facsimile) [email protected] [email protected] Counsel to Plaintiffs, Sandra Perison and Donald Perison

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LOWENSTEIN SANDLER LLP Michael S. Etkin, Esq. Terri Jane Freedman, Esq One Lowenstein Drive Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Counsel to Plaintiffs, Sandra Perison and Donald Perison

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

In re USI SERVICES GROUP, INC., et al.

Debtors.

Chapter 11 Case No: 18-10153 (JKS) Jointly Administered Hearing Date: June 26, 2018 at 10:00 a.m. Objection Deadline: June 19, 2018 at 4:00 p.m. Oral Argument Requested if Opposition Filed

CERTIFICATION OF COUNSEL IN SUPPORT OF MOTION FOR AN ORDER

GRANTING RELIEF FROM THE AUTOMATIC STAY TO PROCEED WITH STATE COURT ACTION CONCERNING PERSONAL INJURY CLAIMS ONLY TO THE

EXTENT OF ANY APPLICABLE INSURANCE

I, Terri Jane Freedman, Esq, do hereby certify the following:

1. I am Counsel to the firm of Lowenstein, Sandler LLP. We were contacted by

personal injury counsel for Sandra Perison (“S. Perison”) and Donald Perison (collectively

“Plaintiffs”) and asked to make this Motion for an Order Granting Relief from the Automatic

Stay to Proceed with State Court Litigation Concerning a Personal Injury Action (the “Motion”)

on their behalf. I submit this certification in support of the Motion.

2. On January 3, 2018 (the “Petition Date”), the Debtors filed its voluntary petition

for relief under Chapter 11 of the Bankruptcy Code, 11 U.S.C. § 101 et seq. (the “Bankruptcy

Code”).

3. On January 5, 2018, the Court entered an order jointly administering the Debtors’

cases for procedural purposes.

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4. Prior to the Petition Date on or about April 26, 2009, S. Perison was at the

McKinley Mall in Blasdell, New York in a J.C. Penney store. While in the customer restroom,

she slipped and fell due to the presence of water on the floor. As a result of the fall, S. Perison

seriously injured both her left wrist and left knee, and has had multiple surgeries as a result of

her injures. S. Perison’s injuries are permanent and progressive, and have continued to adversely

impact her activities of daily living.

5. On or about April 2, 2012, the Plaintiffs filed a complaint in New York State

Supreme Court, Erie County in an action captioned Perison v. J.C. Penney, et al., Index No.

I2012/1258, against various defendants, including the Debtors, seeking damages for S. Perison’s

injuries (the “State Court Action”). See complaint in the State Court Action attached hereto as

Exhibit A.

6. Since the Petition Date, the Plaintiffs’ matter has been stayed as a consequence of

the automatic stay provisions set forth in 11 U.S.C. Sec. 362 (a). This has precluded the Plaintiffs

from moving forward in their lawsuit against Debtors.

7. The parties have been litigating this matter for six (6) years and discovery in the

underlying State Court action was ongoing at the time the Debtors filed their petitions. Also, a

trial date of April 20, 2018 has been adjourned without date as a result of the filing of the

Chapter 11 petitions.

8. Upon information and belief, the Debtors are covered by an insurance policy

applicable to the Plaintiffs’ claims (the “Insurance Policy”). See Lexington Insurance Company

Insurance Declaration Pages attached hereto as Exhibit B. Upon further information and belief,

the Debtors’ Insurance Policy limit for personal injury matters is $1,000,000 per incident.3

9. The Insurance Policy likely exceeds any recovery that Plaintiffs would obtain

following trial of the State Court Action, and the Plaintiffs are solely seeking payment of their

claims from the insurance provider, not the Debtors. Further, in the event excess liability

insurance is maintained, Plaintiffs reserve the right to seek recovery against such policy as well.

3 Upon information and belief, two other defendants in the State Court Case, J.C. Penney and Johnson Controls, also maintain insurance policies applicable to Plaintiffs’ claims.

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10. The Debtors’ potential liability to the Plaintiffs is covered by the Insurance Policy

and will not prejudice other creditors of the estates.

11. To emphasize to the Court, the Plaintiffs are not seeking payment of Plaintiffs’

injuries from the Debtors, but instead are seeking to continue with the litigation and obtain

payment from the insurance carrier within the policy limits. Consequently, the Plaintiffs will not

be burdening the bankruptcy estate with this claim

12. For the aforementioned reasoning, the Plaintiffs respectfully request that the

Court grant the Motion for the purpose of continuing state court litigation and seeking payment

solely from the Debtors’ insurance carrier.

I certify that the foregoing statements made by me are true. I am aware that if any of the

foregoing statements made by me are willfully false, I am subject to punishment.

LOWENSTEIN SANDLER LLP

/s/ Terri Jane Freedman Dated: May 22, 2018 Terri Jane Freedman

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EXHIBIT A

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EXHIBIT B

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UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY Caption in Compliance with D.N.J. LBR 9004-1

Michael S. Etkin, Esq. Terri Jane Freedman, Esq. LOWENSTEIN SANDLER LLP One Lowenstein Drive Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Counsel to Plaintiffs, Sandra Perison and Donald Perison

In re: USI SERVICES GROUP, INC., et al Debtors.

Chapter 11

Case No. 18-10153 (JKS)

Jointly Administered

ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY TO PROCEED WITH

STATE COURT ACTION CONCERNING PERSONAL INJURY CLAIMS ONLY TO THE EXTENT OF ANY APPLICABLE INSURANCE

The relief set forth on the following pages, numbered page (2) through (2) is hereby

ORDERED:

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Page: 2 Debtors: USI SERVICES GROUP, INC., et al Case No.: 18-10153 (JKS) Caption: ORDER GRANTING RELIEF FROM THE AUTOMATIC STAY TO

PROCEED WITH STATE COURT ACTION CONCERNING PERSONAL INJURY CLAIMS ONLY TO EXTENT OF APPLICABLE INSURANCE

____________________________________________________________________________________________

Sandra Perison and Donald Perison (the “Plaintiffs”), by and through their attorneys,

Lowenstein Sandler LLP, having submitted a motion (the “Motion”) seeking relief from the

automatic stay pursuant to 11 U.S.C. § 362; and this Court having considered the Motion and

any objections to the Motion (the “Objections”); and this Court having considered the Motion,

the Objections, and the arguments of counsel on the record (if any); and good cause having been

shown; it is hereby:

ORDERED, that the Motion is granted as set forth herein; and it is further

ORDERED, that the automatic stay is lifted to allow the Plaintiffs to proceed in the New

York State Supreme Court, Erie County action captioned Perison v. J.C. Penney, et al., Index

No. I2012/1258 concerning personal injury claims to the extent of any applicable insurance; and

it is further

ORDERED, that the fourteen (14) day stay of orders provided under Bankruptcy Rule

4001(a)(3) is hereby waived, and this Order shall be immediately enforceable upon its entry.

ORDERED, that Plaintiffs’ counsel shall serve a copy of this Order on (i) counsel to the

Debtors; (ii) counsel to the secured parties; (iii) the Office of the United States Trustee for the

District of New Jersey; (iv) counsel to Lexington Insurance Company; and (v) all parties who

have filed and served a Notice of Appearance, by regular mail within seven (7) days hereof.

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35138/2

05/22/2018 202234801.1

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY __________________________________________ Caption in Compliance with D.N.J. LBR 9004-1(b)

LOWENSTEIN SANDLER LLP Michael S. Etkin, Esq. Terri Jane Freedman, Esq. One Lowenstein Drive Roseland, NJ 07068 Tel: (973) 597-2500 Fax: (973) 597-2400 Counsel to Sandra Perison and Donald Perison

In re: USI SERVICES GROUP, INC., et al. Debtors.

Chapter 11

Case No: 18-10153 (JKS) Judge: John K. Sherwood (Jointly Administered)

CERTIFICATION OF SERVICE

1. I, Diane C. Claussen, pursuant to 28 U.S.C. § 1746, certify as follows:

☐ represent _______________________________ in this matter.

☒ I am a paralegal employed by the law firm of Lowenstein Sandler LLP, counsel

to Sandra Perison and Donald Perison in the above-captioned cases.

☐ am the _______________________________ in this case and am representing

myself.

2. On May 22, 2018, I sent a copy of the following document to the parties listed on Exhibit

A hereto in the manner set forth therein:

Motion for an Order Granting Relief from the Automatic Stay to Proceed with State Court Action Concerning Personal Injury Claims Only to the Extent of any Applicable Insurance.

3. I certify under penalty of perjury that the above-referenced document was sent using the

mode of service indicated.

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-2-

Date: May 22, 2018 /s/ Diane C. Claussen Diane C. Claussen

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Exhibit A

Name and Address of Party Served Relationship of

Party to the Case

Mode of Service

Honorable John K. Sherwood, United States Bankruptcy Judge United States Bankruptcy Court 50 Walnut Street, Courtroom 3D Newark, NJ 07102

Judge ☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Peter J. D’Auria, Esq. Office of the United States Trustee District of New Jersey One Newark Center - Suite 2100 Newark, NJ 07102

United States Trustee

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Stuart Gold, Esq. Jeffrey M. Rosenthal, Esq. Mandelbaum Salsburg et. al. 155 Prospect Avenue West Orange, NJ 07052

Counsel to the Debtors

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Joseph L. Schwartz, Esq. Riker, Danzig, Scherer, Hyland, et al. Headquarters Plaza One Speedwell Ave Morristown, NJ 07960

Counsel to the Secured Creditor, ConnectOne Bank Corp., Inc.

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Mitchell L. Pascual, Esq. Chasan Lamparello Mallon , et al. 300 Lighting Way Secaucus, NJ 07094

Counsel to Lexington Insurance Company

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

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Name and Address of Party Served Relationship of

Party to the Case

Mode of Service

Robert Lapowsky, Esq. John C. Kilgannon, Esq. Stevens & Lee, P.C. Princeton Pike Corporate Center 100 Lenox Drive, Suite 200 Lawrenceville, NJ 08648

Attorneys for TBBK Direct Leasing, LLC

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Ward W. Benson, Esq. U.S. Department of Justice PO Box 227 Washington, DC 20044

Counsel for the United States of America

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Deb Secrest Commonwealth of Pennsylvania Department of Labor and Industry Collections Support Unit 651 Boas Street, Room 702 Harrisburg, PA 17121

Interested Party ☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Carol E. Momjian, Esq. Senior Deputy Attorney General Office of Attorney General 21 S. 12th Street, 3rd Floor Philadelphia, PA 19107

Attorney for the Commonwealth of Pennsylvania, Department of Revenue

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Walter L. Maroney, Esq. State of New Hampshire Department of Employment Security 45 South Fruit Street Concord, NH 03301

Counsel for the State of New Hampshire Department of Employment Security

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Samuel R. Bloom, Esq. Raab, Sturn & Ganchrow LLP 2525 Center Ave., Suite 100 Fort Lee, NJ 07024

Attorney for Benefit Service 32BJ Funds

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

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Name and Address of Party Served Relationship of

Party to the Case

Mode of Service

Seth Ptasiewicz, Esq. Kroll Heineman Carton, LLC Metro Corporate Campus I 99 Wood Avenue South, Suite 307 Iselin, NJ 08830

Attorneys for Creditor Kroll Heineman Carton, LLC

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Jay W. Hurst, Esq. Assistant Attorney General Bankruptcy & Collections Division MC 008 PO Box 12548 Austin, TX 78711-2548

Attorneys for The Comptroller of Public Accounts of the State of Texas

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Jay L. Lubetkin, Esq. Rabinowitz, Lubetkin & Tully, LLC 293 Eisenhower Parkway, Suite 100 Livingston, NJ 07039

Counsel to Interested Party, Frederick G. Goldring

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

Seidia R. Bernard, Esq. Roach Bernard, PLLC 175 N. Central Ave., Suite 200 Valley Stream, NY 11580

Attorneys for Creditors Patricia King and Paulette Brown-Wilks

☐ Hand-delivered

☒ Regular mail

☐ Certified mail/RR

☐ Other via e-mail (As authorized by the Court or by rule. Cite the rule if applicable.)

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