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Full title: Motion for Relief from Stay (FEE) // Motion of Juanita Aguilar for Relief from Automatic Stay. Fee Amount $188. Filed by Juanita Aguilar. Hearing scheduled for 1/20/2021 at 10:30 AM at US Bankruptcy Court, 824 Market St., 5th Fl., Courtroom #4, Wilmington, Delaware. Objections due by 1/13/2021. (Attachments: # 1 Notice # 2 Exhibit A # 3 Exhibit B # 4 Proposed Form of Order # 5 Certificate of Service) (Mangan, Kevin) (Entered: 12/30/2020)

Document posted on Dec 29, 2020 in the bankruptcy, 6 pages and 0 tables.

Bankrupt11 Summary (Automatically Generated)

Objection Deadline: January 13, 2021 at 4:00 p.m. (E Hearing Date: January 20, 2021 at 10:30 a.m. (ET) MOTION OF JUANITA AGUILAR FOR RELIEF FROM AUTOMATIC STAY Movant, Juanita Aguilar (“Movant”), by and through the undersigned attorneys, and pursuant to 11 U.S.C. § 362(d)(1), Bankruptcy Rule 4001, and Local Rules 2002-4 and 9014-1, moves this Court to grant relief from the automatic stay imposed by 11 U.S.C. § 362(a), and in support thereof, state as follows: Jurisdictional Allegations 1. As a direct and proximate result of the negligence of the Debtor, as heretofore alleged, Movant, was injured in and about her body and extremities; incurred medical expenses for the treatment of said injuries; incurred pain and suffering of both a physical and mental nature; incurred a permanent injury to the body as a whole; incurred loss of ability to lead and enjoy a normal life; incurred loss of wages and a loss of wage earning capacity, all of which are either permanent or continuing in nature and the Movant, will sustain said loss in the future.On request of a party in interest and a hearing, the court shall grant relief from the stay provided under subsection (a) of this section, such as by terminating, annulling, modifying, or conditioning such stay – (1) for cause, including lack of adequate protection of an interest in property of such party in interest;... Therefore, this Court should modify the automatic stay in order to allow Movant to pursue the State Court Action to settlement or final judgment. WHEREFORE, Movant, Juanita Aguilar, respectfully requests this Court to enter an Order, substantially in the form attached hereto, that (a) grants Movant relief from the automatic stay; (b) permits Movant to pursue the State Court Action to settlement or final judgment for all damages, attorneys’ fees and costs that may arise as a consequence of same; (c) applies proceeds of insurance to the extent that any such proceeds are available to pay any claim for damages including but not limited to attorneys’ fees and costs that may arise as a consequence of litigating or settling Movant’s claim; (d) deems Movant’s claim an unsecured pre-petition claim to the extent that Movant’s claim is not covered by insurance; and (e) for such other and further relief as the Court deems just and proper.

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IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re Chapter 11 YOUFIT HEALTH CLUBS, LLC., et al., Case No. 20-12841 (MFW) Debtors.1 (Jointly Administered) Objection Deadline: January 13, 2021 at 4:00 p.m. (E Hearing Date: January 20, 2021 at 10:30 a.m. (ET) MOTION OF JUANITA AGUILAR FOR RELIEF FROM AUTOMATIC STAY Movant, Juanita Aguilar (“Movant”), by and through the undersigned attorneys, and pursuant to 11 U.S.C. § 362(d)(1), Bankruptcy Rule 4001, and Local Rules 2002-4 and 9014-1, moves this Court to grant relief from the automatic stay imposed by 11 U.S.C. § 362(a), and in support thereof, state as follows: Jurisdictional Allegations 1. This case was filed by Debtor, YOUFIT Health Clubs, LLC, et al., (“Debtor”), under Chapter 11 of the United States Bankruptcy Code on November 9, 2020. Pursuant to the provisions of 11 U.S.C. § 362, all persons are enjoined and stayed from commencing or continuing any suit against Debtor or his property. 2. This Court has jurisdiction over this proceeding pursuant to 28 U.S.C. § 1334 and 157, and 11 U.S.C. § 105 and 362. 1 The last four digits of YouFit Health Clubs, LLC’s tax identification number are 6607. Due to the large number of debtor entities in these chapter 11 cases, a complete list of the debtor entities and the last four digits of their federal tax identification numbers is not provided herein. A complete list of such information may be obtained on the website of the claims and noticing agent at www.donlinrecano.com/yfhc. The mailing address for the debtor entities for purposes of these chapter 11 cases is: 1350 E. Newport Center Dr., Suite 110, Deerfield Beach, FL 33442.

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Factual Background 3. On or about January 15, 2019, the Movant went to YOUFIT Health Club the Movant went to YOUFIT Health Club (“YOUFIT”) to work out. The Debtor owned and operating a fitness club located at 6198 N. Lockwood Ridge Rd., Sarasota, FL 34236. The Debtor owed the Movant, JUANITA AGUILAR, a business visitor upon the premises, the duty to exercise reasonable care for her safety. The Debtor breached the duty owed to the Movant by committing one or more of the following omissions or commissions: a. Negligently failed to maintain or adequately maintain the area by allowing potholes to remain in parking lot for the safety of the Movant, as she was leaving the gym; b. Negligently failed to inspect or adequately inspect the ingress and egress to the health club for the safety of the Movant; c. Negligently failed to warn or adequately warn the Movant of the danger of the potholes when the Debtor, knew or should have known of said danger and that the Movant, was unaware of said danger; and d. Negligently failed to correct, or adequately correct the dangerous condition when said dangerous condition was known to the Debtor, or had existed for a sufficient length of time so that the Debtor should have known of it. 4. As a direct and proximate cause of the negligence of the Debtor, as heretofore alleged, the Movant, tripped on a large pothole near the front door of the gym sustaining serious injury. 5. As a direct and proximate result of the negligence of the Debtor, as heretofore alleged, Movant, was injured in and about her body and extremities; incurred medical expenses for the treatment of said injuries; incurred pain and suffering of both a physical and mental nature;

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incurred a permanent injury to the body as a whole; incurred loss of ability to lead and enjoy a normal life; incurred loss of wages and a loss of wage earning capacity, all of which are either permanent or continuing in nature and the Movant, will sustain said loss in the future. 6. As a result of the aforementioned facts, Movant initiated litigation in the Circuit Court of the Twelfth Judicial Circuit in and for Sarasota County, Florida (“State Court Action”) on or about March 14, 2020 assigned Case No. 20-CA-001297. A copy of the Complaint is attached hereto as Exhibit A. Debtor was served on May 13, 2020. Debtor’s counsel in the State Court Action filed a Motion to Compel Arbitration and Supporting Memorandum of Law and to Stay Discovery on June 2, 2020. Argument 7. Movant requests that the Court lift the automatic stay, pursuant to 11 U.S.C. § 362(d), to allow her to pursue her personal injury claim, by pursuing the State Court Action. 8. Section 362(d) provides in pertinent part: On request of a party in interest and a hearing, the court shall grant relief from the stay provided under subsection (a) of this section, such as by terminating, annulling, modifying, or conditioning such stay – (1) for cause, including lack of adequate protection of an interest in property of such party in interest;... 9. Movant argues that she is entitled to stay relief under the “cause” standard of subsection (d)(1) of Section 362. The determination of “cause” under subsection (d)(1) is not subject to a rigid test; courts instead balance the competing interests of the debtor and the movant on a case-by-case basis. In Rexene Products Company, 141 B.R. 574, 576 (Bankr. D. Del. 1992). Section 362's legislative history shows that cause may be established by a single factor, such as “desire to permit an action to proceed...in another tribunal,” or “lack of any connection with or

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interference with the pending bankruptcy case.” Rexene, 141 B.R. at 576, citing H.R.Rep. No. 95-595, 95th Cong., 1st Sess., at 343-44 (1977). 10. Relief from the automatic stay should be granted to permit the continuance of a personal injury action in its place of origin, assuming the bankruptcy estate will not be prejudiced. Rexene, 141 B.R. at 576, citation omitted. Further, bankruptcy courts do not have subject matter jurisdiction to try personal injury claims such as Movant’s claim. See 28 U.S.C. § § 157(b)(2)(O) and (b)(5); In re Todd Shipyards, 92 B.R. 600 (Bankr. D. N.J. 1988) (state court personal injury litigation is allowed to proceed in light of 28 U.S.C. § 157(b)(5)). It is therefore particularly appropriate to modify the stay to allow such proceedings to continue for liquidation purposes. 11. Pursuant to 28 U.S.C. § 157(b)(2)(B), the bankruptcy court does not have jurisdiction to liquidate personal injury claims for distribution purposes. Therefore, Movant's personal injury claim needs to be liquidated in state court. It is in the best interest of the Debtor to know the value of Movant's personal injury claim. 12. The bankruptcy court in Rexene, supra, set forth the criteria to be used when determining whether “cause” exists to lift the automatic stay to permit the parties to litigate their dispute in a non-bankruptcy forum, to wit: (1) the prejudice that would be suffered should the stay be lifted; (2) the balance of the hardships facing the parties; and (3) the probable success on the merits if the stay is lifted. 13. Administration of the estate will not be delayed by the granting of this Motion. Any inconvenience to the Debtor by the continuation of the pending claim against him by the Movant pursuing her rights is outweighed considerably by the hardship to the Movant resulting from the postponement of this action. The pursuit of Movant’s claim will not deprive the Debtor of assets nor any of his rights. The mere liquidation of Movant’s claim is a limited remedy that will not

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prejudice Debtor or his estate and is an appropriate subject of stay modification. E.g., In re Tricare Rehabilitation Systems, Inc., 181 B.R. 569, 578 (Bankr. N.D. Ala. 1994); In re Metzner, 167 B.R. 414, 416-17 (Bankr. E.D. La. 1994). To prohibit Movant from pursuing the claim against Debtor would have a devastating impact upon the Movant, psychologically, physically, and financially. 14. Additionally, to the extent insurance is available, Debtor has neither an interest in the insurance proceeds, nor may it access or use same. Therefore, Debtor’s insurance proceeds are not assets of the Debtor which § 362 was intended to protect. 15. Furthermore, essential witnesses are, without limitation, those who were present at the time of the incident and Movant’s treating physicians and other medical personnel. With the passage of time it becomes more and more difficult to discover and locate witnesses as they move out of the area. Therefore, the availability of evidence to support the Movant’s claims is decreasing and continues to decrease with the passage of time. 16. Cause exists pursuant to section 362(d)(1) to terminate the automatic stay because neither the Debtor, his estate, nor creditors of the estate will suffer any harm if the Court grants the relief sought herein. 17. It is probable that Movant will prevail on the merits at the time of trial in the State Court Action. The Affidavit of Joseph A. Kopacz, Esquire in Support of the Motion for Relief from Stay is attached hereto as Exhibit B. Mr. Kopacz has conducted a substantial investigation and review of the underlying facts and is of the opinion that this case has substantial merit and a reasonable probability of success on the merits. 18. Therefore, this Court should modify the automatic stay in order to allow Movant to pursue the State Court Action to settlement or final judgment.

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WHEREFORE, Movant, Juanita Aguilar, respectfully requests this Court to enter an Order, substantially in the form attached hereto, that (a) grants Movant relief from the automatic stay; (b) permits Movant to pursue the State Court Action to settlement or final judgment for all damages, attorneys’ fees and costs that may arise as a consequence of same; (c) applies proceeds of insurance to the extent that any such proceeds are available to pay any claim for damages including but not limited to attorneys’ fees and costs that may arise as a consequence of litigating or settling Movant’s claim; (d) deems Movant’s claim an unsecured pre-petition claim to the extent that Movant’s claim is not covered by insurance; and (e) for such other and further relief as the Court deems just and proper. Dated: December 30, 2020 WOMBLE BOND DICKINSON (US) LLP Wilmington, Delaware /s/ Kevin J. Mangan Kevin J. Mangan (DE No. 3810) 1313 North Market Street, Suite 1200 Wilmington, Delaware 19801 (302) 252-4320 telephone (302) 252-4330 facsimile kevin.mangan@wbd-us.com -and- IURILLO LAW GROUP, P.A. Camille J. Iurillo (admitted pro hac vice) Fla. Bar No. 902225 Kevin L. Hing Fla. Bar No. 0071976 5628 Central Avenue St. Petersburg, Florida 33707 (727) 895-8050 telephone (727) 895-8057 facsimile ciurillo@iurillolaw.com khing@iurillolaw.com Attorneys for Juanita Aguilar