Bergstein motion to dismiss civil suit denied
Aramid seeks $16 million repayment; trial set for May 2011A federal court judge in Los Angeles denied a motion by David Bergstein and Ronald Tutor to dismiss one of two civil lawsuits brought against them and related companies by Aramid Entertainment Fund which seeks repayment of about $16 million they personally guaranteed to get loans related to making movies.
In his ruling, U.S. District Court Judge John F. Waters on Tuesday found Bergstein and Tutor's arguments that this suit should not go forward because of a lack of proper jurisdiction "completely meritless."
The court also set May 3, 2011 as the date the case is to go to trial in U.S. District Court, Central District of California.
This is one of two suits filed by Aramid. The other is aimed at several entities controlled by Bergstein and is in state court.
While these suits are separate from an involuntary bankruptcy case against companies controlled by Bergstein, the matters are not completely unrelated. David Molner, a managing partner of Aramid, was the one who helped gather creditors who brought the bankruptcy case. The Aramid debts are among those cited in the bankruptcy action.
Separately, Bergstein and Tutor continue to pursue the acquisition of Miramax from Disney in a deal reportedly worth $650 million. Bergstein is advising on the acquisition and Tutor, who is also head of a large construction company, is one of the key financial backers in the proposed deal.