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Full title: Motion for relief from stay Fee amount $188, Filed by Creditor RICHARD MURVIN Objections due by 3/17/2021. (Leininger, John)

Document posted on Mar 2, 2021 in the bankruptcy, 6 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

identification number, include: Studio Movie Grill Holdings, LLC (6546) ("SMG Holdings"); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX,,LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC ( 1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571 ); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVlll, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XL VI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XL VIII, LLC (860 I); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts Lil[, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV,LLC(4699);Movie Grill Partners 3, LLC (4200);(“Murvin”), a creditor of Studio Movie Grill Holdings, LLC (the “Debtor”), and files this Motion for Relief from the Automatic Stay (the “Motion”), and would respectfully show the Court the following: SUMMARY OF ARGUMENT Murvin does not seek and will not attempt to enforce against the Debtor's estate any judgment they may obtain in the state court action identified below, but shall file a proof of claim to assert any deficiency remaining after any and all payments from the Debtor's insurance policies and/or other named defendants have been applied to satisfy the judgment.Judicial economy, along with numerous other factors presented herein,

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION IN RE: § Case No. 20-32633 § STUDIO MOVING GRILL HOLDINGS, § Chapter 11 LLC et al.1 § § Debtors. § (Jointly Administered) MOTION OF RICHARD MURVIN TO MODIFY STAY TO PERMIT CONTINUATION OF STATE COURT LITIGATION NOTICE TO CREDITORS AND PARTIES IN INTEREST PURSUANT TO LOCAL BANKRUPTCY RULE 4001-l(b), A RESPONSE IS REQUIRED TO THIS MOTION, OR THE ALLEGATIONS IN THE MOTION MAY BE DEEMED ADMITTED, AND AN ORDER GRANTING THE RELIEF SOUGHT MAY BE ENTERED BY DEFAULT. ANY RESPONSE SHALL BE IN WRITING AND FILED WITH THE CLERK OF THE UNITED STATES BANKRUPTCY COURT AT 1100 COMMERCE STREET, ROOM 1254, DALLAS, TEXAS 75242-1496 1 The Debtors in these Chapter 11 cases, along with the last four digits of each Debtor's federal tax. identification number, include: Studio Movie Grill Holdings, LLC (6546) ("SMG Holdings"); OHAM Holdings, LLC (0966); Movie Grill Concepts Trademark Holdings, LLC (3096); Movie Grill Concepts I, Ltd. (6645); Movie Grill Concepts III, Ltd. (2793); Movie Grill Concepts IV, Ltd. (1454); Movie Grill Concepts IX,,LLC (3736); Movie Grill Concepts VI, Ltd. (6895); Movie Grill Concepts VII, LLC (2291); Movie Grill Concepts X, LLC (6906); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XII, LLC (6040); Movie Grill Concepts XIII, LLC (5299); Movie Grill Concepts XIV, LLC (4709); Movie Grill Concepts XIX, LLC (9646); Movie Grill Concepts XL, LLC (4454); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XLII, LLC (2309); Movie Grill Concepts XLIII, LLC (9721); Movie Grill Concepts XLIV, LLC (8783); Movie Grill Concepts XLV, LLC (2570); Movie Grill Concepts XV, LLC (4939); Movie Grill Concepts XVI, LLC (1033); Movie Grill Concepts XVII, LLC ( 1733); Movie Grill Concepts XVIII, LLC (8322); Movie Grill Concepts XX, LLC (7300); Movie Grill Concepts XXI, LLC (1508); Movie Grill Concepts XXII, LLC (6748); Movie Grill Concepts XXIV, LLC (5114); Movie Grill Concepts XXIX, LLC (5857); Movie Grill Concepts XXV, LLC (4985); Movie Grill Concepts XXVI, LLC (5233); Movie Grill Concepts XXVII, LLC (4427); Movie Grill Concepts XXVIII, LLC (1554); Movie Grill Concepts XXX, LLC (1431); Movie Grill Concepts XXXI, LLC (3223); Movie Grill Concepts XXXII, LLC (0196); Movie Grill Concepts XXXIII, LLC (1505); Movie Grill Concepts XXXIV, LLC (9770); Movie Grill Concepts XXXIX, LLC (3605); Movie Grill Concepts XXXV, LLC (0571 ); Movie Grill Concepts XXXVI, LLC (6927); Movie Grill Concepts XXXVII, LLC (6401); Movie Grill Concepts XXXVlll, LLC (9657); Movie Grill Concepts XXIII, LLC (7893); Studio Club, LLC (3023); Studio Club IV, LLC (9440); Movie Grill Concepts XI, LLC (2837); Movie Grill Concepts XLI, LLC (4624); Movie Grill Concepts XL VI, LLC (2344); Movie Grill Concepts XLVII, LLC (5866); Movie Grill Concepts XL VIII, LLC (860 I); Movie Grill Concepts XLIX, LLC (0537); Movie Grill Concepts L, LLC (5940); Movie Grill Concepts LI, LLC (7754); Movie Grill Concepts LII, LLC (8624); Movie Grill Concepts Lil[, LLC (3066); Movie Grill Concepts LIV, LLC (2018); Movie Grill Concepts LV,LLC(4699);Movie Grill Partners 3, LLC (4200); Movie Grill Partners 4, LLC (1363);Movie Grill Partners 6, LLC (3334); and MGC Management I, LLC (3224).

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BEFORE CLOSE OF BUSINESS ON MARCH 17, 2021, WHICH IS AT LEAST 14 DAYS FROM THE DATE OF SERVICE HEREOF. A COPY SHALL BE SERVED UPON COUNSEL FOR THE MOVING PARTY AND ANY TRUSTEE OR EXAMINER APPOINTED IN THE CASE. ANY RESPONSE SHALL INCLUDE A DETAILED AND COMPREHENSIVE STATEMENT AS TO HOW THE MOVANT CAN BE "ADEQUATELY PROTECTED" IF THE STAY IS TO BE CONTINUED. COMES NOW Richard Murvin (“Murvin”), a creditor of Studio Movie Grill Holdings, LLC (the “Debtor”), and files this Motion for Relief from the Automatic Stay (the “Motion”), and would respectfully show the Court the following: SUMMARY OF ARGUMENT Cause exists to lift the automatic stay to allow Murvin to liquidate his claims against the Debtor's estate and to collect funds to which he may be entitled under the Debtor's insurance policies. Murvin does not seek and will not attempt to enforce against the Debtor's estate any judgment they may obtain in the state court action identified below, but shall file a proof of claim to assert any deficiency remaining after any and all payments from the Debtor's insurance policies and/or other named defendants have been applied to satisfy the judgment. Judicial economy, along with numerous other factors presented herein, strongly support lifting or modifying the automatic stay to (i) allow the commencement of litigation to liquidate and finalize Murvin’s claim as against the Debtor; and (ii) allow Murvin to proceed against insurance proceeds that are the sole property of non-debtor third-parties and, thus, are not property of the Debtor's estate or subject to this bankruptcy case. JURISDICTION AND VENUE 1. This Court has jurisdiction over the case and this Motion pursuant to 28 U.S.C. §§ 157 and 1334. This Motion constitutes a core proceeding within the meaning of 28 U.S.C. § 157(b)(2)(G). Venue of this case and this Motion is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

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BACKGROUND 2. On November 6, 2018, Murvin was a patron invitee of the Debtor’s theater located at 1233 University Mall Ct., Tampa, Florida when he sustained injuries as a result of slipping and falling on water in the men’s restroom. 3. On information and belief, the Debtor has a liability insurance policy that may apply to satisfy Murvin’s claim. The proceeds of this policy is payable to third-parties, not to the Debtor, and, thus, is not part of the Debtor's estate. 4. On October 23, 2020, the Debtor filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. No trustee or examiner has been appointed in this case. 5. The commencement of litigation by Murvin regarding his claim was stayed by the filing of the Debtor's petition for bankruptcy under Chapter 11 of the Bankruptcy Code. BASIS FOR GRANTING RELIEF FROM THE AUTOMATIC STAY 6. In this case, Murvin seeks to commence litigation against the Debtor solely to liquidate his claims so that he may recover from the Debtor's insure. Murvin will take no steps to enforce any judgment obtained in such suit against the Debtor's estate or any insurance proceeds that are property of the estate. However, Murvin does seek to pursue his claim against any and all insurance policy proceeds that are payable to non-debtor third-parties and, thus, not property of the Debtor's estate. Modification of the automatic stay as requested would not interfere with the Debtor's bankruptcy proceeding. 7. Section 362(d)(1) of the Bankruptcy Code provides: On request of a party in interest and after notice and a hearing, the court shall grant relief from the stay provided under [section 362(a)], such as by terminating, annulling, modifying, or conditioning such stay- (1) for cause, including the lack of adequate protection of an interest in property of such a party in interest;

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11 U.S.C. § 362(d)(1). 8. Under Section 362(d)(1), the Court may grant relief from the automatic stay “for cause.” “Cause” is not defined by statute, and thus affords flexibility to the bankruptcy courts to grant relief from the automatic stay in their discretion. See In re Fowler, 259 B.R. 856, 858 (Bankr. E.D. Tex. 2001). The purpose of the stay is to “prevent a chaotic and uncontrolled scramble for the debtor's assets in a variety of uncoordinated proceedings in different courts.” Id. 9. Generally, “the burden of proof, or the risk of non-persuasion, is on the debtor for all issues except the issue of the debtor’s equity in property.” See 11 U.S.C. § 362(g); In re Timbers of Inwood Forest Assocs., Ltd., 793 F.2d 1380, 1388 (5th Cir. 1986). 10. In determining whether to allow litigation in a non-bankruptcy forum, the court should consider whether: (i) judicial economy is better achieved through litigating the claim in a non-bankruptcy forum or estimating the claims in the bankruptcy court; (ii) either forum avoids unnecessary expense and delay (iii) the claim is critical to the success or failure of the reorganization; and (iv) the nature of the claim requires expertise beyond the abilities of the bankruptcy court. In re Choice ATM Enterprises, Inc., 2015 WL 1014617 (Bankr. N.D. Tex. March 4, 2015). 11. The facts and circumstances underlying this Motion support an exercise of this Court's discretion to lift the automatic stay. 12. Considerations of judicial economy and efficiency alone would justify lifting the automatic stay. Murvin’s claim is for a personal injury, which cannot be tried in or estimated by this Court. 11 U.S.C § 157(5). If Murvin’s claim is to be liquidated, it must be in a non-bankruptcy court. Thus it would be more economical and avoid unnecessary expense and delay to allow Murvin to commence a lawsuit in a non-bankruptcy forum.

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13. In addition to judicial economy, the other Choice ATM factors support lifting the automatic stay. For example, since the Debtor has insurance to cover Murvin’s claim, resolution of the claim is not critical to the success or failure of the Debtor’s reorganization. Further since this Court cannot liquidate or estimate Murvin’s claim, the resolution of Murvin’s claim requires expertise beyond the abilities of the Court. 14. Murvin believes the balance of harms in this case favors lifting the automatic stay. There is little if any prejudice to the Debtor or its estate in allowing Murvin to commence litigation and liquidate his claim in state court. However, Murvin will be greatly prejudiced if not allowed to liquidate his claim. 15. Murvin has alleged a colorable personal injury claim against the Debtor based on the Debtor’s negligent acts. The claim is a personal injury claim which cannot be tried in this Court. 11 U.S.C § 157(5). Without the requested relief, Murvin is left with no remedy, which does not comport with equity or due process. CONCLUSION Murvin respectfully requests that the Court issue an order lifting or modifying the automatic stay so as to permit Murvin to commence her lawsuit against the Debtor in state court provided Murvin shall take no action to enforce any judgment obtained in the state court suit against the Debtor's estate.

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Respectfully submitted, OTTESON SHAPIRO LLP By: /s/ John C. Leininger John C. Leininger jcl@os.law Texas Bar No. 24007544 5420 LBJ Freeway, Suite 1225 Dallas, Texas 75240 Direct Dial: (469) 397-4825 ATTORNEY FOR RICHARD MURVIN CERTIFICATE OF CONFERENCE Prior to filing this Motion, Movant’s bankruptcy counsel reached out by email and telephone to Debtors’ attorneys to determine whether they would be amenable to entering into a stipulation for an order granting relief from stay on the ground set forth here in this Motion. Movant’s counsel did not receive a response from Debtors’ counsel. /s/ John C. Leininger John C. Leininger CERTIFICATE OF SERVICE I hereby certify that a true and correct copy of the foregoing document was served on all counsel of record on this the 3rd day of March 2021, in accordance with the Federal Rules of Civil Procedure. /s/ John C. Leininger John C. Leininger