My Facebook commentary druing this period is posted below; all legal documents pertaining to the granting of the PI can be found here.]
You wrote on June 8, 2009 at 7:38pm: Just a quick update on the legal aspects of OMW 2009, for those of you who are interested...---
There were no new court filings today, apparantly. However, as you can see in para 2 above, there will be a hearing tomorrow at 10am in Pensacola, to determine whether a "Preliminary Injunction" will be imposed on Johnny Chisholm and Chisholm Properties Circuit Events, LLC.
In a nutshell, this hearing will determine whether the Temporary Restraining Order becomes not-so-temporary.
Naturally, the outcome of this hearing will be of keen interest to any DJs, entertainers, vendors, lessors, and/or advertising sponsors who have yet to be paid in full by Johnny Chisholm for this year's OMW. As soon as I find out what the decision is, I'll post it here ASAP, along with any additional filings of general interest that may be made.
You wrote on June 10, 2009 at 1:32pm: OK, we have a minute-by-minute rundown of yesterday's hearing for a Preliminary Injunction against Johnny Chisholm, in the lawsuit against him for essentially funding OMW with $200,000 of stolen money.---
Aaaaand here's it is :
---
"PROCEEDINGS:
10:18am Court in session - introduction of counsel
10:20 Plaintiffs (Lieberman) review case and argue motion for preliminary injunction [#2]; Court inquiry; Pltfs (Lieberman) respond
10:52 Defendants (Fehr) address the Court; Court inquiry; Defts (Fehr) respond
10:55 Court will enter a show cause order for Mr. Chisholm; Pltfs (Lieberman) respond
11:02 Plaintiff CHARLES CARVER sworn - Direct (Lieberman); 11:46 Cross (Fehr); 11:48 Redirect; 11:49 Court inquiry; no follow up. Plaintiffs’ Exhibit C, E, H, I & J admitted
11:51 Pltfs witness RAY DEFOREST sworn - Direct (Lieberman); 12:15 Cross;12:17 Redirect
12:18 Pltfs (Lieberman) closing argument
12:28 Court will amend/modify order re: temporary injunction.
12:29 Pltfs (Lieberman) address RICO statutes/standards; Court inquiry; Pltfs (Lieberman) respond. Plaintiffs’ Exhibits K & L admitted
12:59 Court in recess
1:08 Court in session
1:09 Defts (Fehr) closing argument
1:13 Pltfs (Lieberman) reply
1:17 Court admits Plaintiffs’ Exhibits A-L admitted (transcript “L” to be submitted to the court today). Court instructs Pltfs to submit proposed language re: modification of the TRO. Court will enter a show cause order as to Mr. Chisholm w/hearing date for him to appear
1:19 Pltfs (Lieberman) inquiry; Court responds re: issuing subpoenas; counsel respond
1:23 Order will enter an order re: motion for preliminary injunction prior to June 13, 2009
Plaintiffs’ Exhibits Admitted:
A-H (attached to Complaint - doc. #1)
I & J - receipts
K - Chisholm General Ledger 12/31/07
L - Deposition Transcript of Johnny Chisholm"
---
OK, and now I'll try to explain what this all means.
Basically, what's at stake here is a motion for a Preliminary Injunction against Johnny Chisholm personally, and his OMW corporation ("Chisholm Properties Circuit Events, LLC"). The PI will likely be very similar to the TRO, but without the "Temporary." It'll probably remain in place for the duration of this lawsuit.
IOW, if the PI is approved, it means a long term asset freeze on Mr. Chisholm's bank accounts...needless to say, a very very bad thing for Mr. Chisholm.
So, those are the stakes. And as you can see from the proceedings above, not only did the plaintiff's being numerous exhibits to the hearing, bit they brought along two witnesses (plaintiff Charles Carver, and Ray DeForest, a plaintiff in another similar suit against Chisholm). By contrast, Chisholm's lawyer seems to have brought only himself to this hearing.
Anyways, as you can see, testimony was taken, exhibits entered, and arguments by both sides were made. And based on that, the judge decided to do two things:
1) Instructed the plaintiffs to submit a proposed draft for the Preminary Injunction; and
2) Entered a "show cause order as to Mr. Chisholm w/hearing date for him to appear."
OK, what this "show cause order" is, it's basically the judge wanting to ask Johnny Chisholm a few questions before he makes his ruling. I.e., the judge is asking Mr. Chisholm to come in, sit down, and to "show cause" why he should not place a freeze on all his assets.
And if Mr. Chisholm decides not to show up to show his cause...then the PI will be automatically granted. Probably using the same language drafted by the plaintiff's in their proposed order, which you can well imagine will be draconian indeed.
Thus it will be probably in Chisholm's best interests to show up for this; the date has not been set yet, but as you can see from the above, will be sometime before the 13th.
The final decision on the PI will be made on or before the 13th as well (which BTW is the date the TRO is due to expire).
I'll post more info as it becomes available. And once again, thanks for all the emails and messages of support.
You wrote on June 10, 2009 at 1:55pm: Ooops, hold on folks, it looks like I made a slight error in the post above...---
I just got a copy of the "show cause" order on Johnny Chisholm, and it turns out that I made a mistaken assumption as to what it pertained. I had assumed it pertained to the Motion for a PI, but I was wrong...it pertains to a new and totally different issue.
And what is that issue, you ask? Well...this is I'd say another of those "screen capture" moments I'd say, so give me a few minutes as I make the copies and post them to the photo section...this is something you guys literally have to see to believe... :o)
You wrote on June 10, 2009 at 2:17pm: Just when you thought the legal dimensions of OMW could not get any more remarkable! The two-page order is now posted in the photo section; here is the text version of the just entered Order to Show Cause on Johnny Chisholm:---
"ORDER TO SHOW CAUSE AND NOTICE OF HEARING
This matter was brought before the court on Tuesday, June 9, 2009, for hearing on Plaintiff’s Emergency Motion for Preliminary Injunction. Plaintiff Charles Carver was present with counsel, as was counsel for defendants; however, defendant Johnny Chisholm did not attend the hearing nor did any representative of Chisholm Properties Circuit Events, LLC.
At the hearing, plaintiffs presented evidence suggesting to the court that defendants have violated the Amended Temporary Restraining Order entered June 3, 2009. Such violations include, but may not be limited to, diverting cash and credit card ticket sales from the accounts and depositories frozen by the temporary restraining order to alternate bank accounts and failing to properly register and document receipts of income derived through ticket sales for the One Mighty Weekend event in Orlando, Florida, the weekend of June 4, 2009. Accordingly, the court will require defendant Johnny Chisholm to appear and show cause why he should not be held in contempt of the court’s order of temporary Case 3:09-cv-00232-MCR-MD Document 21 Filed 06/10/2009 injunction dated June 3, 2009. Defendant Chisholm should also be prepared to show his compliance with the affirmative obligations of the order. It is therefore ORDERED:
1. The court will conduct a show cause hearing on Wednesday, July 16, 2009, at 1:00 PM at which time defendant Johnny Chisholm shall appear and show cause why he should not be held in contempt of the court’s order of temporary injunction dated June 3, 2009. Defendant is advised that failure to appear shall result in a warrant for his arrest.
2. The clerk shall forward a copy of this order to the United States Marshal
Service for prompt service upon defendant Johnny Chisholm, at 210 East Garden Street, Pensacola, Florida 32502.
DONE AND ORDERED this 10th day of June, 2009.
s/ M. Casey Rodgers
M. CASEY RODGERS
UNITED STATES DISTRICT JUDGE"
So there you have it. Ignore everything I said about "show cause" two posts up. Instead substitute it with this:
1) Johnny Chisholm has to show up before the judge in person, on July 16, 2009, in Pensacola, to explain what appears to be a willful violation of the judge's TRO, and
2) If he fails to appear, it "shall result in a warrant for his arrest."
Reading the tea leaves here, folks: This is one pissed off Federal judge.
You wrote on June 12, 2009 at 5:45pm: A big update today on the Chisholm lawsuit some of you here are following. And that is, the judge decided to grant that Motion for a Preliminary Injunction I mentioned earlier, essentially freezing all his known assets and bank accounts. It is almost the same in wording as the Temporary Restraining Order that he got hit with last week, except the PI is NOT temporary. The TRO was due to expire tomorrow. This new PI, OTOH, is permanent, until the judge decides to stop it, which will probably not be until this case is dismissed.
To briefly describe the situation in non-legal parlance: Chisholm is fucked.
According to the terms of the PI, he can only pay expenses for vendors related to OMW 2009 out of his frozen accounts. He CANNOT pay himself OR his employees any salaries.
The PI also applies to all his corporation accounts in the frozen banks, not just the one being sued in this case (Chisholm Properties Circuit Events, LLC). This is a new addition by the PI, to the terms of the TRO. The judge noticed a bad habit of Chisholm to transfer funds and assets between his various corporations rather promiscuously (including those in bankruptcy), and by extending the freeze to all his corporations effectively puts a stop to that.
BTW, the complete list of his various now-frozen corporations...well, how shall I put this...there is a VERY interesting revelation in this list...take a look-see, look-seers:
"...All Merchant Accounts for any and all of the following:
Johnny Chisholm, Chisholm Properties Circuit Events, LLC, One
Mighty Weekend Memorial Day Pensacola, Johnny Chisholm
Global Events, LLC, Reunion Events, Inc., Chisholm
Properties of Pensacola, LLC, Emerald City of Pensacola,
Inc., One Mighty Weekend, Beach Ball, Let’s Go Play,
200 E. Garden Street, LLC, Louisiana Interests, Inc.,
800 Bourbon Street, LLC, Oz Bar, Chisholm Properties
of Baton Rouge, LLC, and any other merchant accounts
related to the defendants herein,..."
NOW. OK folks, take a look and scan that list of Chisholm entities subject to the freeze VERY carefully.
Do any of the above names strike you guys as...interesting? :o)
I'm adding a screen cap of that list to the photo section now...
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