In re: FAS MART CONVENIENCE STORES, INC., et al. Chapter 11, Debtors in Possession KEITH L. PHILLIPS, TRUSTEE, Plaintiff, v. LEHMAN BROTHERS HOLDINGS, INC., d/b/a Lehman Capital and PETER KERN Defendants

Case No. 01-60386, Procedurally ConsolidatedUnited States Bankruptcy Court, E.D. Virginia.
January 9, 2004

Frank J. Santoro, Esquire, Lawrence H. Glanzer, Esquire, MARCUS, SANTORO KOZAK, P.C., Chesapeake, Virginia, of Counsel for Keith L. Phillips, Trustee

Allan S. Buffenstein, Esquire, Amy K. Dilworth, Esquire, McCANDLISH HOLTON P.C., Richmond, Virginia, of Counsel for Lehman Capital and Peter Kern

Douglas M. Foley, Esquire, Daniel F. Blanks, Esquire, McGUIREWOODS L.L.P., Norfolk, Virginia, of Counsel for Official Committee of Unsecured Creditors

Joseph S. Sheerin, Esquire, McGUIRE WOODS L.L.P., Richmond, Virginia, of Counsel for Official Committee of Unsecured Creditors

Paul M. Nussbaum, Esquire, Brent C. Strickland, Esquire, WHITEFORD, TAYLOR PRESTON L.L.P., Baltimore, Maryland, Counsel for Official Committee of Unsecured Creditors

ORDER
DOUGLAS TICE, Chief Judge, Bankruptcy

Hearing was held October 21, 2003, on the motion of Peter Kern, vice president of Lehman Brothers Holdings, Inc. to dismiss trustee’s motion for sanctions against Kern for violation of the automatic stay. In his motion to dismiss Kern alleged that this court lacks personal jurisdiction over him because: (1) he never acted in an individual capacity but only as an officer of Lehman; (2) he has never appeared generally before this court or waived procedural requirements for personal jurisdiction; and (3) he has not been served with a summons.

For the reasons stated in the memorandum opinion entered today,

IT IS ORDERED that the motion of Peter Kern to dismiss trustee’s motion for sanctions is DENIED.

IT IS FURTHER ORDERED that trustee is directed to convert this sanctions contested matter to an adversary proceeding.

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