Attorney or Party Name, Address, Telephone & FAX Numbers, and California State Bar Number

FOR COURT USE ONLY

Jeff D. Kahane (SBN 223329)
DUANE MORRIS LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5450
Telephone: 213.689.7400 Fax: 213.689.7401
E-mail: JKahane@duanemorris.com
D Individual appearing without counsel
C8J Attorney for: ACE American Insurance Company and ACE Property &
Casualtv Insurance Comoanv
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
In re:
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
CASE NO. 8:10-bk-16743-TA
Debtor(s).
DATE: January 6, 2011
In re:
TIME: 10:00 a.m.
BioLabs, Inc.
CTRM: 5B
Debtor(s).
FLOOR: 5
th
Floor
NOTICE OF MOTION AND MOTION FOR RELIEF FROM THE AUTOMATIC STAY
UNDER 11 U.S.C. 362 (with supporting declarations)
(MOVANT: ACE American Insurance Company and ACE Property & Casualty Insurance Company)
(Personal Property)
1. NOTICE IS HEREBY GIVEN to the Debtor(s) and Trustee (if any)("Responding Parties"), their attorneys (if any), and other
interested parties that on the above date and time and in the indicated courtroom, Movant in the above-captioned matter will move this
Court for an Order granting relief from the automatic stay as to Debtor(s) and bankruptcy estate on the grounds set forth
in the attached Motion.
2. Heari ng Location: D 255 East Temple Street, Los Angeles
D 21041 Burbank Boulevard, Woodland Hills
D 3420 Twelfth Street, Riverside
C8J 411 West Fourth Street, Santa Ana
D 1415 State Street, Santa Barbara
3. ". C8J This Motion is being heard on REGULAR NOTICE pursuant to Local Bankruptcy Rule 9013-1. If you wish to oppose this
Motion, you must file a written response to this Motion with the Bankruptcy Court and serve a copy of it upon the Movant's
attorney (or upon Movant, if the Motion was filed by an unrepresented individual) at the address set forth above no less than
14 days before the above hearing and appear at the hearing of this Motion.
b. D This Motion is being heard on SHORTENED TIME. If you wish to oppose this Motion, you must appear at the hearing. Any
written response or evidence must be filed and served:
D at the hearing D at least __ court days before the hearing.
(1) D A Motion for Order Shortening Time was not requi red (according to the calendaring procedures of the assigned judge).
(2) D A Motion for Order Shortening Time was filed per Local Bankruptcy Rule 9075-1(b) and was granted by the Court.
(3) D A Motion for Order Shortening Time has been filed and remains pending. Once the Court has ruled on that Motion, you
will be served with another notice or an order that will specify the date, time and place of the hearing on the attached
Motion and the deadline for filing and serving a written opposition to the Motion.
4. You may contact the Bankruptcy Clerk's Office to obtain a copy of an approved court form for use in preparing your response
(Optional Court Form F 4001-1MRESj , or you may prepare your response using the format required by Local Bankruptcy Rule
9004-1 and the Court Manual
(Continued on next page)
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009
F 4001-1M.PP
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 1 of 9
Motion for Relief from Stay (Personal Property) - Page 2 of 9
F 4001-1M.PP
In re (SHORT TITLE) CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Debtor(s). CASE NO.: 8:10-bk-16743-TA
5. If you fail to file a written response to the Motion or fail to appear at the hearing, the Court may treat such failure as a waiver of your
right to oppose the Motion and may grant the requested relief.
Dated: December 10,2010
DUANE MORRIS LLP
Print Law Firm Name (if applicable)
Jeff D. Kahane /s/ Jeff D. Kahane
Print Name of Individual Movant or Attorney for Movant Signature of Individual Movant or Attorney for Movant
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 2 of 9
Motion for Relief from Stay (Personal Property) - Page 3 of 9
F 4001-1M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories
Debtor(s). CASE NO.: B:10-bk-16743-TA
MOTION FOR RELIEF FROM STAY
(MOVANT: ACE American Insurance Company and ACE Property & Casualty Insurance Company)
1. The Property at Issue: Movant moves for relief from the automatic stay with respect to the following personal property (the "Property"):
o Vehicle (describe year, manufacturer, type, and model):
Vehicle Identification Number:
Location of vehicle (if known):
o Equipment (describe manufacturer, type, and characteristics):
Serial number(s):
Location (if known):
[8J Other Personal Property (describe type, identifying information, and location):
The following insurance policies: G20513147, HOB049610, D37327153.
2. Case History:
a. [8J A voluntary 0 An involuntary petition under Chapter o 7 [8J 11 0 12 0 13
was filed on (specify date) : 5/19/10
b. 0 An Order of Conversion to Chapter
was entered on (specify date):
c. 0 Plan was confirmed on (specify date):
o 7 0 11 0 12 0 13
d. 0 Other bankruptcy cases affecting this Property have been pending within the past two years. See attached Declaration.
3. Grounds for Relief from Stay:
a. [8J Pursuant to 11 U.S.C. 362(d)(1), cause exists to grant Movant the requested relief from stay as follows:
(1) 0 Movant's interest in the Property is not adequately protected.
(a) 0 Movant's interest in the collateral is not protected by an adequate equity cushion.
(b) 0 The fair market value of the Property is declining and payments are not being made to Movant sufficient to protect
Movant's interest against that decline.
(c) 0 No proof of insurance re Movant's collateral has been provided to Movant, despite borrower(s)'s obligation to insure
the collateral under the terms of Movant's contract with Debtor(s).
(d) 0 Payments have not been made as required by an Adequate Protection Order previously granted in this case.
(2) 0 The bankruptcy case was filed in bad faith to delay, hinder or defraud Movant.
(a) 0 Movant is the only creditor or one of very few creditors listed on the master mailing matrix.
(b) 0 The Property was transferred to Debtor(s) either just before the bankruptcy filing or since the filing.
(c) 0 Non-individual entity was created just prior to bankruptcy filing for the sole purpose of filing bankruptcy.
(d) 0 Other bankruptcy cases have been filed asserting an interest in the same Property.
(e) 0 The Debtor(s) filed what is commonly referred to as a 'lace sheet" filing of only a few pages consisting of the Petition
and a few other documents. No Schedules or Statement of Affairs (or Chapter 13 Plan, if appropriate) has been filed.
December 2009
(Continued on next page)
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
F 4001-1M.PP
LegalNet,
,,,-1nW:ormsWPrkF1Qw.com
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 3 of 9
Motion for Relief from Stay (Personal Property) - Page 4 of 9
F 4001-1M.PP
In re (SHORT TITLE) CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Debtor(s). CASE NO.: 8:10-bk-16743-TA
(3) 0 (Chapter 12 or 13 cases only)
(a) 0 Postconfirmation plan payments have not been made to the standing trustee.
(b) 0 Postconfirmation payments required by the confirmed plan have not been made to Movant.
(4) 0 The lease has been rejected or deemed rejected by operation of law.
(5) For other cause for relief from stay, see attached continuation page.
b. 0 Pursuant to 11 U.S.C. 362(d)(2)(A), Debtor(s) haslhave no equity in the Property; and pursuant to 362(d)(2)(B), the
Property is not necessary for an effective reorganization.
4. 0 Movant also seeks annulment of the stay so that the filing of the bankruptcy petition does not affect postpetition acts, as specified
in the attached Declaration(s).
5. Evidence in Support of Motion: (Important Note: Dec/aration(s) in support of the Motion MUST be attached hereto.)
a. 0 Movant submits the attached Declaration(s) on the Court's approved forms (if applicable) to provide evidence in support of
this Motion pursuant to Local Bankruptcy Rules.
b. Movant submits the attached supplemental Declaration(s) under penalty of to provide additional admissible evidence
in support of this Motion.
c. 0 Movant requests that the Court consider as admissions the statements made by Debtor(s) under penalty of conceming
Movant's claims and the Property set forth in Debtor's(s') Schedules. Authenticated copies of the relevant portions of the
Schedules are attached as Exhibit
d. 0 Other evidence (specify):
6. An optional Memorandum of Points and Authorities is attached to this Motion.
WHEREFORE, Movant prays that this Court issue an Order terminating or modifying the stay and granting the following (specify
forms of relief requested):
1. Relief from the stay allowing Movant (and any successors or assigns) to proceed under applicable non-bankruptcy law to enforce
its remedies t8 r8J38S68SS aRe 6811 tl=te PrsJ3sFty.
2. 0 Annulment of the stay so that the filing of the bankruptcy petition does not affect postpetition acts, as speCified in the attached
Declaration(s).
3. Additional provisions requested:
a. That the Order be binding and effective despite any conversion of this bankruptcy case to a case under any other chapter of
Title 11 of the United States Code.
b. That the 14-day stay prescribed by Bankruptcy Rule 4001(a)(3) be waived.
c. 0 That Extraordinary Relief be granted as set forth in the Attachment (attach Optional Court Form F 4001-1M.ER).
d. 0 For other relief requested, see attached continuation page.
(Continued on next page)
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
American LegaL"et, Int..

Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 4 of 9
Motion for Relief from Stay (Personal Property) - Page 5 of 9
F 4001-1M.PP
In re (SHORT TITLE) CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Debtor(s). CASE NO: 8:10-bk-16743-TA
4. II Feliel I",,,, stay is Aet graAte", MevaAt Fequests the Court to OFGeF a"equate
Dated: December 10, 2010 Respectfully submitted,
ACE American Insurance Company and ACE Property &
Casualty Insurance Company
Movant Name
DUANE MORRIS LLP
Firm Name of Attorney for Movant (if applicable)
By: lsi Jeff D. Kahane
Signature
Name: Jeff D. Kahane
Typed Name of Individual Movant or Afforney for Movant
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009
F 4001-1M.PP
American LegalNel, Inc. I??A
www
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 5 of 9
Motion for Relief from Stay (Personal Property) - Page 6 of 9
F 4001-1M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Debtor(s). CASE NO.: 8:10-bk-16743-TA
Motion for Relief from Stay (Personal Property) - Page 6 of 10
In re Chapter 11
Westcliff Medical Laboratories, Inc., Case No.: 8:10-bk-16743-TA
Debtor.
CONTINUATION
(This Attachment is the continuation page for page 4 of the Motion for Relief From Stay paragraph 3(a)(5).)
There is cause to grant this motion because the Debtors seek the return of unearned premiums paid for the ACE
Policies, but have not moved for relief from stay so that ACE can cancel the ACE Policies.
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 6 of 9
Motion for Relief from Stay (Personal Property) - Page 7 of 9
F 4001-1M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Debtor(s). CASE NO.: 8:10-bk-16743-TA
NOTE: When uSing this form to Indicate service of a proposed order, DO NOT list any person or entity In Category I.
Proposed orders do not generate an NEF because only orders that have been entered are placed on a CMI ECF docket.
PROOF OF SERVICE OF DOCUMENT
I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:
865 S. Figueroa Street, Suite 3100, Los Angeles, CA 90017-5450.
A true and correct copy of the foregoing document described as NOTICE OF MOTION AND MOTION FOR RELIEF
FROM AUTOMATIC STAY UNDER SECTION 362, MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT
OF ACE AMERICAN INSURANCE COMPANY FOR RELIEF FROM AUTOMATIC STAY FOR THE PURPOSE OF
RETROACTIVE CANCELLATION OF INSURANCE POLICIES, DECLARATION OF MATTHEW R. SKOLNIK IN
SUPPORT OF MOTION FOR RELIEF FROM AUTOMATIC STAY FOR THE PURPOSE OF RETROACTIVE
CANCELLATION OF INSURANCE POLICIES, AND (PROPOSED) ORDER GRANTING MOTION FOR RELIEF FROM
THE AUTOMATIC STAY UNDER 11 U.S.C. 361 (PERSONAL PROPERTY)
will be served or was served (a) on the judge in chambers in the form and manner required by LBR 5005-2(d), and (b) in
the manner indicated below:
I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING ("NEF") - Pursuant to controlling General
Order(s) and Local Bankruptcy Rule(s) ("LBR"), the foregoing document will be served by the court via NEF and hyperlink to
the document. On December 10, 2010 I checked the CMIECF docket for this bankruptcy case or adversary
proceeding and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at
the email addressed indicated below:
Raymond G Alvarado ralvarado@adorno.com
Todd M Arnold tma@lnbrb.com
Richard L Barnett rick@barnettrubin.com, rlbsec@barnettrubin.com
Ron Bender rb@lnbrb.com
IZI Service information cont inued on attached page
II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL (indicate method for each person or entity served):
On December 10, 2010 I served the following person(s) andlor entity(ies) at the last known address(es) in this
bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United States
Mail, first class, postage prepaid, andlor with an overnight mail service addressed as follow. Listing the judge here constitutes
a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed.
IZI Service information continued on attached page
III. SERVED BY PERSONAL DELIVERY, FACSIMILE TRANSMISSION OR EMAIL (indicate method for each person or entity
served): Pursuant to F.R.Civ.P. 5 andl or controlling LBR, on I served the following person(s)
andlor entity(ies) by personal delivery, or (for those who consented in writing to such service method) by facsimile transmission
andl or email as follows. Listing the judge here constitutes a declaration that mailing to the judge will be completed no later
than 24 hours after the document is filed.
o Service information continued on attached page
I declare under penalty of perjury under the laws of the United States of America t t the foregoing is true and correct.
December 10, 2010 Greta Clark
Date Type Name Signature
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 7 of 9
Motion for Relief from Stay (Personal Property) - Page 8 of 9
F 4001-1M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
December 2009
Debtor(s). CASE NO.: 8:10-bk-16743-TA
ATTACHMENT TO PROOF OF SERVICE
VIA NOTICE OF ELECTRONIC FILING ("NEF")
Ronald K Brown rkbgwhw@aol.com
Jennifer Witherell Crastz jcrastz@hemar-rousso.com
Carol J Fogleman mfrost@bwslaw.com
Anthony A Friedman aaf@lnbrb.com
John-Patrick M Fritz jpf@lnbrb.com
Jeffrey K Garfinkle bkgroup@buchalter.com, jgarfinkle@buchalter.com;lgoodwin@buchalter.com
Fredric Glass fglass@fairharborcapital.com
Nancy S Goldenberg nancy.goldenberg@usdoj.gov
D Edward Hays ehays@marshackhays.com
Michael J Heyman michael.heyman@klgates.com
Mark D Houle mark.houle@pillsburylaw.com
Andy Kong Kong.Andy@ArentFox.com
Rodger M Landau rlandau@lgbfirm.com, kmoss@lgbfirm.com
Matthew A Lesnick matt@lesnicklaw.com
Michael B Lubic michael.lubic@klgates.com
Frank F McGinn ffm@bostonbusinesslaw.com
Elissa Miller emiller@sulmeyerlaw.com, asokolowski@sulmeyerlaw.com
Aram Ordubegian ordubegian.aram@arentfox.com
Richard Park Richard.Park@usdoj.gov
Justin E Rawlins jrawlins@winston.com, docketla@winston.com
Jacqueline L Rodriguez jlr@lnbrb.com
Benjamin Seigel bseigel@buchalter.com, IFS_filing@buchalter.com
David B Shemano dshemano@pwkllp.com
Philip E Strok pstrok@wgllp.com
United States Trustee (SA) ustpregion16.sa.ecf@usdoj.gov
Howard J Weg hweg@pwkllp.com
Sharon Z Weiss sharon.weiss@hro.com
Joseph M Welch jwelch@buchalter.com
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
F 4001-1M.PP
American LegM1Nei , inc. ~
~ v . w D'OllSWprkFlpw.com ~
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 8 of 9
Motion for Relief from Stay (Personal Property) - Page 8 of 9
F 4001-1M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Oebtor(s). CASE NO: 8:10-bk-16743-TA
ATTACHMENT TO PROOF OF SERVICE (Cont'd)
Served Via U.S. Mail
Callahan & Blaine
3 Hutton Centre Dr #900
Santa Ana, CA 92707
County of Tulare California
Debt Acquisition Company of America V, LLC
1565 Hotel Circle South
Suite 310
San Diego, CA 92108
Michael Gerges
Enterprise Rent-A-Car of Los Angeles,
dba Enterprise Fleet Service
17210 South Main Street
Gardena, CA 90248
Kirkland & Ellis LLP
300 N LaSalle St
Chicago, IL 60654
Brenda Riley
Riverside Claims
Post Office Box 626
Planetarium Station
New York, NY 10024-0540
Badi Kangar
400 North Oakhurst DR #102
Beverly Hills CA 90210
Miriam Anderson
851 Domingo Dr., Apt 6
Newport Beach, CA 92660
Robert L. Fletcher, Jr.,
City and County of San Francisco
Office of the T reasurerfr ax Collector
Legal Section
P.O. Box 7426
San Francisco, CA 94120-7426
Steven A. Oldham, Esq.
Department of Health Care Services
Office of Legal Services
MS 0010
PO Box 997413
Sacramento, CA 95899-7413
DavidW Gee
Garvey Schubert Barer
1191 Second Ave 18th FI
Seattle, WA 98101-2939
Ernie Zachary Park
Orange County Treasurer-Tax Collector
13215 E Penn St #510
Whittier, CA 90602
Johnny White
Blakeley & Blakeley LLP
2 Park Plaza Ste 400
Irvine, CA 92614-8561
Claimants
Anita Belas
818 Averril Apt # 2
San Pedro CA 90732
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
Case 8:10-bk-16743-TA Doc 323 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Main Document Page 9 of 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28


MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1567892.2 1
RON OLINER (SBN 152373)
DUANE MORRIS LLP
Suite 2200
One Market Plaza, Spear Tower
San Francisco, CA 94105-1127
Telephone: (415) 957-3000
Facsimile: (415) 957-3001
E-mail: roliner@duanemorris.com

JEFF D. KAHANE (SBN 223329)
DUANE MORRIS LLP
865 S. Figueroa Street Suite 3100
Los Angeles, CA 90017-5450
Telephone: (213) 689-7400
Facsimile: (213) 689-7401
E-mail: jkahane@duanemorris.com

Attorneys for ACE American Insurance Company, ACE
Property & Casualty Insurance Company, and the
affiliated insurers and reinsurers
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
SANTA ANA DIVISION
In re:
WESTCLIFF MEDICAL LABORATORIES,
INC.,
Debtor.
Case No.: 8:10-bk-16743-TA
Chapter 11
Honorable Theodor Albert
(Jointly Administered with
Case No. 8:10-bk-16746)
In re:
BIOLABS, INC.,
Debtor.
MEMORANDUM OF POINTS AND
AUTHORITIES IN SUPPORT OF ACE
AMERICAN INSURANCE COMPANY
FOR RELIEF FROM AUTOMATIC STAY
FOR THE PURPOSE OF RETROACTIVE
CANCELLATION OF INSURANCE
POLICIES






Case 8:10-bk-16743-TA Doc 323-1 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Memorandum of Points and Authorities in Support of Motion for Relief from the A Page 1 of 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28


MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1567892.2 2
ACE American Insurance Company, ACE Property and Casualty Insurance Company and
the affiliated insurance and reinsurance companies (collectively, ACE), by and through their
undersigned counsel, hereby move for relief from the automatic stay for the purpose of retroactively
cancelling, on Debtors request, certain insurance policies issued by ACE to the Debtors (ACE
Policies), and respectfully state as follows.
INTRODUCTION
The Court should find there is cause to grant this motion because the Debtors seek the return
of unearned premiums paid for the ACE Policies, but have not moved for relief from stay so that
ACE can cancel the ACE Policies. Should relief from stay not be granted, there will be no unearned
premiums for ACE to return to the Debtors.
ACE and the Debtors are parties to the ACE Policies, including an automobile liability policy
(the Auto Policy). After the court-approved sale of their assets, the Debtors requested that ACE
retroactively cancel the ACE Policies effective June 17, 2010, and that ACE return to the Debtors
any unearned premiums. However, several third parties ( Claimants) submitted claims against the
Auto Policy to ACE for losses allegedly occurring after the proposed retroactive cancellation date of
June 17, 2010.
The ACE Policies are property of the estate and may not be cancelled without relief from the
automatic stay. In re Minoco Group of Companies, Ltd., 799 F.2d 517, 519 (9th Cir. 1986).
Moreover, retroactive cancellation of the Auto Policy without notice and hearing, may prejudice the
Claimants. ACE has proposed to the Debtors to jointly move for relief from the automatic stay for
the purpose of retroactively cancelling the ACE Policies, but the Debtors have not responded to that
proposal.
For these reasons, ACE requests that, after notice and hearing, including notice to the
Claimants, this Court grant relief from the automatic stay to ACE, pursuant to 11 U.S.C. 362(d),
for the purpose of retroactively cancelling the ACE Policies, effective as of June 17, 2010.
Case 8:10-bk-16743-TA Doc 323-1 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Memorandum of Points and Authorities in Support of Motion for Relief from the A Page 2 of 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28


MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1567892.2 3
JURISDICTION AND VENUE
This Court has jurisdiction over this Motion pursuant to 28 U.S.C. 157 and 1334. This is
a core proceeding within the meaning of 28 U.S.C. 157(b)(2)(A) & 157(b)(2)(O). Jurisdiction is
appropriate in this Court pursuant to 28 U.S.C. 1408 and 1409.
RELEVANT FACTUAL AND PROCEDURAL BACKGROUND
ACE and the Debtors are parties to the ACE Policies listed below:

Policy Number Policy Type Policy Period
G20513147 Umbrella Liability 10/1/2009 10/1/2010
H08049610
Commercial Automobile
Liability
10/1/2009 10/1/2010
D37327153
Commercial Package,
including Commercial
Property, General
Liability and Inland
Marine Policies
10/1/2009 10/1/2010
On May 19, 2010, the Debtors filed voluntary petitions for relief pursuant to Chapter 11 of
the United States Bankruptcy Code in this Court. The Debtors bankruptcies are jointly
administered by this Court.
On June 16, 2010, the Debtors, with the approval of the Court, sold substantially all of their
assets to Wave Newco, Inc.
1
The sale did not include the ACE Policies, but included the assets
insured by the ACE Policies, including the vehicles covered by the Auto Policy.
2

In September, 2010, the Debtors requested that ACE retroactively cancel the ACE Policies
effective June 17, 2010, and return any unearned premiums. (Declaration of Matthew R. Skolnik
(Skolnik Dec.), 3.), filed concurrently herewith. In September, 2010, the Claimants submitted

1
See Notice of Withdrawal of Debtors Second Motion for an Order: (1) Approving Sale of
Substantially All of the Debtors Assets (Excluding Cash and Accounts Receivable) Free and Clear
of All Liens, Claims and Interests; (2) Approving of Debtors Assumption and Assignment of
Unexpired Leases and Executory Contracts and Determining Cure Amounts; (3) Waiving the 14-day
Stay Periods Set Forth in Bankruptcy Rules 6004(h) and 6006(d); and (4) Granting Related Relief,
Docket Number (Dkt No. 127, filed June 17, 2010.
2
See Declaration of Matthew Pakkala in support of Debtors Motion for an Order: (1)
Approving Sale of Substantially All of the Debtors Assets (Excluding Cash and Accounts
Receivable) Free and Clear Of All Liens, Claims And Interests; (2) Approving of Debtors
Assumption and Assignment of Unexpired Leases and Executory Contracts and Determining Cure
Amounts; (3) Waiving the 14-Day Stay Periods Set Forth in Bankruptcy Rules 6004(H) and
6006(D); and (4) Granting Related Relief, Exhibit 1, Dkt. No. 72, filed May 28, 2010 (Asset
Purchase Agreement).
Case 8:10-bk-16743-TA Doc 323-1 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Memorandum of Points and Authorities in Support of Motion for Relief from the A Page 3 of 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28


MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1567892.2 4
claims against the Auto Policy to ACE, seeking coverage for losses that allegedly occurred after
June 17, 2010. (Id., 4.)
On September 30, 2010, the Debtors and their insurance financing company AFCO moved
for relief from the automatic stay to, among other things, collect from ACE the unearned premiums
for the ACE Policies (AFCO Motion). In that motion, the Debtor and AFCO incorrectly asserted
that the ACE Policies had been retroactively cancelled.
3

After several unsuccessful attempts to contact Debtors counsel by telephone, ACEs
counsel, Mr. Skolnik, sent a letter dated October 15, 2010, to Debtors counsel via certified mail,
Mr. Arnold. (Id., 5, Exhibit A.) In the letter, Mr. Skolnik advised Mr. Arnold of the claims against
the Auto Policy and proposed that: (i) the Debtors, jointly with ACE and with notice to the
Claimants, move for relief from automatic stay for the purpose of retroactive cancellation of the
ACE Policies; and (ii) the Debtors provide the Claimants with information concerning any new
insurance carrier that may provide coverage for their claims. (Id., 6.)
4

Debtors counsel has not responded to Mr. Skolniks October 15, 2010, letter. (Id., 7.)
On December 3, 2010, the Court entered an Order approving the AFCO Motion. (Dkt. No.
310.) It does not grant relief from stay to ACE to cancel the ACE Policies.
ARGUMENT
The Court should grant this motion because ACE has demonstrated that there is cause for
relief from the automatic stay.
The filing of the bankruptcy case stays all acts to exercise control over property of the estate.
11 U.S.C. 362(a); Gruntz v. County of Los Angeles (In re Gruntz), 202 F.3d 1074, 1081-82 (9th
Cir. 2000) (en banc). The ACE Policies are property of the Debtors estate; such policies may not be

3
Motion to Approve Stipulation Between AFCO Acceptance Corporation and Debtors 1) Re
Payment of Financed Insurance Premiums and for Immediate Relief From Stay in the Event of Non-
Payment as to Workers Compensation Insurance; 2) Relief From Stay to Collect Unearned
Premiums on Cancelled Policies; and 3) Reservation of Rights as to AFCO's Claim, Dkt. No. 268.
4
As set forth above, substantially all of the Debtors assets were sold to Wave Newco, Inc.
effective June 16, 2010. The sold assets included the assets covered by the ACE Policies. Since the
ACE Policies were not included in the sale, it is likely that insurance coverage for those assets is
provided by Wave Newcos insurance carrier.
Case 8:10-bk-16743-TA Doc 323-1 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Memorandum of Points and Authorities in Support of Motion for Relief from the A Page 4 of 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28


MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1567892.2 5
cancelled without relief from the automatic stay. Minoco, 799 F.2d at 519. Relief from the stay may
be granted for cause shown. 11 U.S.C. 362(d)(1). The word cause is not defined in the
Bankruptcy Code. Scripps GSB I, LLC v. A Partners, LLC (In re A Partners, LLC), 344 B.R. 114,
127 (Bankr. E.D. Cal. 2006). However, [t]he term cause as used in 362(d)(1) is a broad and
flexible concept which permits a bankruptcy court, as a court of equity, to respond to inherently fact-
sensitive situations. In re Indian River Estates, Inc., 293 B.R. 429, 433 (Bankr. N.D. Ohio 2003)
(citing In re Texas State Optical, Inc., 188 B.R. 552, 556 (Bankr. E.D. Tex. 1995)). Hence, a
decision to lift the automatic stay for cause is within the Courts discretion. In re Delaney-Morin,
304 B.R. 365, 369-70 (9th Cir. BAP 2003); In re Leisure Corp., 234 B.R. 916, 920 (9th Cir. BAP
1999); Mataya v. Kissinger (In re Kissinger), 72 F.3d 107, 108-109 (9th Cir. 1995).
There is cause to grant relief from stay. The Debtors sold substantially all of their assets and,
in particular, the vehicles insured under the Auto Policy, to Wave Newco. Accordingly, the Debtors
no longer have an insurable interest in those assets, and the Estate derives no benefit from
maintaining insurance policies to insure these assets. Hence, the Debtors no longer need the ACE
Policies to protect those assets. Moreover, the Debtors sought to cancel ACE Policies retroactively
and a return of the unearned premiums. (Skolnik Dec., 3.) The Court has entered an order
authorizing that such premiums be returned. (Dkt. No. 310.)
Thus, because this Court granted the AFCO Motion, it should also grant this motion to allow
ACE to cancel the AFCO Policies. The retroactive cancellation of the ACE Policies will enable
ACE to comply with AFCOs request to return any unearned premiums for the ACE Policies.
A copy of this Motion was served on each Claimant. Hence, the Claimants have had notice
and an opportunity to object.
RESERVATION OF RIGHTS
ACE expressly reserves and does not waive any and all of its rights, defenses, limitations
and/or exclusions under the ACE Policies and applicable law. ACE further reserves all rights to
assert any and all such rights, defenses, limitations and/or exclusions in any appropriate manner or
forum whatsoever (including without limitation arbitration, the United States District Courts or any
state court).
Case 8:10-bk-16743-TA Doc 323-1 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Memorandum of Points and Authorities in Support of Motion for Relief from the A Page 5 of 6
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28


MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1567892.2 6
Nothing contained in this Memorandum or the Motion shall be construed as an
acknowledgment that any of the ACE Policies cover or otherwise apply to any claims, losses or
damages on account of any claims or otherwise, or that any such claims or causes of action are
eligible for payment. ACE reserves all of its rights to object to any claim for coverage under any of
the ACE Policies and/or any claim for payment under any settlement agreements.
Nothing contained in this Memorandum or the Motion shall be construed as an admission or
an acknowledgment that the ACE Policies, or any of them, afford coverage to the Claimants claims
described herein.
Nothing contained in this Memorandum or the Motion shall be deemed to expand any
coverage that may otherwise be available under any ACE Policies or any rights to payment under
any settlements.
CONCLUSION
WHEREFORE, ACE respectfully requests that this Court enter an Order granting relief from
the automatic stay for the purpose of retroactively cancelling the ACE Policies effective June 17,
2010 at 12:01 A.M., and for such other relief this Court deems just.

Dated: December 10, 2010 Respectfully submitted,
DUANE MORRIS LLP
By: /s/ Jeff D. Kahane
Ron Oliner
Jeff D. Kahane

Attorneys for ACE American Insurance Company, ACE
Property & Casualty Insurance Company, and the
affiliated insurers and reinsurers

Of Counsel

BAZELON LESS & FELDMAN, PC
Helen Heifets, Esq.
Matthew Skolnik, Esq.
1515 Market Street, Suite 700
Philadelphia, PA 19102
(215) 568-1155
Case 8:10-bk-16743-TA Doc 323-1 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Memorandum of Points and Authorities in Support of Motion for Relief from the A Page 6 of 6
1 RON OLlNER (SBN 152373)
DUANE MORRIS LLP
2 Suite 2200
One Market Plaza, Spear Tower
3 San Francisco, CA 94105-1127
Telephone: (415) 957-3000
4 Facsimile: (415) 957-3001
E-mail: roliner@duanemorris.com
5
JEFF D. KAHANE (SBN 223329)
6 DUANE MORRIS LLP
865 S. Figueroa Street Suite 3100
7 Los Angeles, CA 90017-5450
Telephone: (213) 689-7400
8 Facsimile: (213) 689-7401
E-mail: jkahane@duanemorris.com
9
Attorneys/or ACE American Insurance Company, ACE
10 Property & Casualty Insurance Company, and the
affiliated insurers and reinsurers
11
12
13
14
15 Inre:
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
SANTA ANA DIVISION
Case No.: 8:10-bk-16743-TA
16 WESTCLIFF MEDICAL LABORATORIES,
INC.,
Chapter 11
17
18
19
20
In re:
BIOLABS, INC.,
(Jointly Administered with
Debtor. Case No. 8:10-bk-16746)
Debtor.
2111 _____________________________ ~
DECLARATION OF MATTHEW R.
SKOLNIK IN SUPPORT OF MOTION FOR
RELIEF FROM AUTOMATIC STAY FOR
THE PURPOSE OF RETROACTIVE
CANCELLATION OF INSURANCE
POLICIES
22
23
24
1.
I, Matthew R. Skolnik, declare as follows:
I am employed as an attorney at Bazelon Less & Feldman, P.C., a law firm located at
25 1515 Market Street, Suite 700, Philadelphia, PA 19102. I represent ACE American Insurance
26 Company, ACE Property & Casualty Insurance Company, and their affiliated insurers and reinsurers
27 (collectively, "ACE"). I have personal knowledge of the facts set forth herein, which were gained
28 through that representation and through my review of ACE books and records in the course of that
DM3\J56799S.1
DECLARATION IN SUPPORT OF ACE'S MOTION FOR RELIEF FROM THE AUTOMATIC STAY
1
Case 8:10-bk-16743-TA Doc 323-2 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Declaration of Matthew R. Skolnik in Support of Motion for Relief from the Auto Page 1 of 2
I representation. If called as a witness, I could and would competently testifY to all facts set forth
2 herein.
3
4
5
6
7
8
9
10
2.
3.
ACE issued the following policies to the captioned debtors ("ACE Policies"):
Policy Number Policy Type Policy Period
G20513147 Umbrella Liability 10/1/2009 - 10/1/2010
H08049610
Commercial Automobile
1011/2009 - 10/1/2010
Liability
Commercial Package,
including Commercial
D37327153 Property, General 10/1/2009 - 10/1/2010
Liability and Inland
Marine Policies
In September 20 I 0, I was informed that ACE received a request from or on behalf of
the debtor-insureds to retroactively cancel the ACE Policies effective June 17,2010 and return any
11
unearned premiums.
12
4.
13
In September 20 I 0, the Claimants submitted claims against policy number
H08049610 to ACE, seeking coverage for losses that allegedly occurred after June 17,2010.
14
5.
15
After making several unsuccessful attempts to contact the Debtors' counsel by
telephone, I sent, via certified mail, a letter dated October 15, 2010, to Debtors' counsel, Mr. Arnold,
16
a true and correct copy of which is attached hereto as Exhibit A.
17
6.
18
In the letter, I advised Mr. Arnold of the claims against the Auto Policy and proposed
that: (i) the Debtors, jointly with ACE and with notice to the Claimants, move for relief from
19
automatic stay for the purpose of retroactive cancellation of the ACE Policies; and (ii) the Debtors
20
21
provide the Claimants with information concerning any new insurance carrier that may provide
coverage for their claims.
22
23
24
7. Debtors' counsel has not responded to that letter.
I declare under penalty of perjury under the law of the United States of America that
the foregoing is true and correct.
25
26
27
28
DM3\J56799S.1
Dated: December 8, 2010
DECLARATION IN SUPPORT OF ACE'S MOTION FOR RELIEF FROM THE AUTOMATIC STAY
2
Case 8:10-bk-16743-TA Doc 323-2 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Declaration of Matthew R. Skolnik in Support of Motion for Relief from the Auto Page 2 of 2
BLF Bazelon Less & Feldman, p.c.
1515 Market Street Suite 700 Philadelphia Pennsylvania 19102-1907 215.568.1155 215.568.9319 fax www.bazless.com
Richard l. Bazelon*t
Jeffrey A. L e s s ~ t
A. Richard Feldmant
Jerrilyn G. Marston"
Thomas Patrick Kelly*t
Helen R. Heifets*t
Noah H. Charlson*t
Lisa A. Barton*t
E. McCord Clayton*t
Michael A. Shapirot
Matthew Skolnik"
Christina M. Regert
Cary Joshi*t
Amanda M.lanham*t
Michael F. R. Harris'
Steven Kudatzkyt* .
Peter F. Marvin"
Larry H. Spector
Of Counsel
"Admitted in PA
tAdmitted in NJ
Admitted in NY
Mdmitted in DC
New Jersey Office
8000 Sagemore Drive
Suite 8302
Marlton
New Jersey 08053-3944
856.988.1319
856.988.0194 fax
MaUhew Skolnik
mskolnik@J1azless.com
October 15,2010
Direct Dial: (215) 609-3149
Direct Fax: (215) 609-3219
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Todd M. Arnold, Esquire
Levene, Neale, Bender, Yoo & Brill LLP
10250 Constellation Blvd., Suite 1700
Los Angeles, CA 90067
Re: In re Westcliff Med. Labs., Inc; In re BioLabs, Inc. (Bankr. C.D. Cal.)
BLF File No.: 3732-192
Dear Mr. Arnold:
As you know, I represent the ACE group of insurance companies, including
ACE American Insurance Company and ACE Property and Casualty Insurance
Company (collectively, "ACE"). This is concerning the requests by Westcliff
Medical Laboratories, Inc. and its co-debtor subsidiaries and affiliates (collectively,
"Westcliff' or "Debtors") to retroactively cancel insurance policies Nos. 03737153,
H08049610 and XOO 02051347 001 (the "ACE Policies") effective June 17,2010.
I have left you two voice-mail messages concerning this matter, on September 27 and
September 30, 2010, to which you have not responded.
We understand that Westcliffs asset sale to Wave Newco, Inc., became
effective on June 16,2010. Accordingly, retroactive cancellation effective June 17,
2010 makes sense, since as of that date Westcliff had no insurable interest in the
properties covered by the ACE Policies. However, as you know, insurance policies
are property of the Debtors' Estates, and their cancellation without the approval of the
Bankruptcy Court is viewed as a violation of automatic stay.
Furthermore, several third parties have reported claims to ACE under
Westcliffs automobile insurance policy No. H08049610 for losses that allegedly
occurred after June 17,2010. These claimants are likely to object to the retroactive
cancellation of the above-referenced policy unless they are provided with the name of
the new carrier and the new claims reporting information.
For these reasons, ACE proposes the following:
ATTO RN EYS AT LAW A Pennsylvania Professional Corporation
Page 3 - Exhibit A
Case 8:10-bk-16743-TA Doc 323-3 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Exhibit A to Declaration of Matthew R. Skolnik Page 1 of 3
BlF
Todd M. Arnold, Esquire
October 15,2010
Page 2
I. The debtors must move the Bankruptcy Court for relief from automatic
stay and an order approving the retroactive cancellation of the ACE Policies. ACE
will join the motion. Adequate notice of the motion must be given to third party
claimants.
2. The debtors must provide the third party claimants with the name of
the new carrier and the new claims reporting information. If you need the names and
addresses of the claimants and any other information about the claims, ACE will be
happy to provide it to you.
Please be advised that ACE cannot retroactively cancel the ACE Policies
unless these requirements are satisfied. Similarly, the satisfaction of these
requirements is a condition precedent to the return of any insurance premiums,
provided that any return premiums would be due under the terms and conditions of
the ACE Policies if the Policies are cancelled effective June 17, 2010.
I also wanted to let you know that ACE intends to advise the third party
claimants of the asset sale, Westcliffs request to retroactively cancel the ACE
Policies, and ACE's request that Westcliff provide the claimants with information
about the new carrier.
Finally, on July 29,2010, ACE mailed to Westcliff and its co-debtor BioLabs,
Inc. a Notice of Nonrenewal of Insurance. At that time, ACE had not yet received
Westcliffs retroactive cancellation request. Accordingly, the Notice of Nonrenewal
was sent in error and should be disregarded.
ACE expressly reserves, and does not waive, any of its rights, obligations,
claims, defenses, limitations and/or exclusions under the Policies, any related
agreements, and applicable law. ACE further reserves all rights to assert any and all
such rights, obligations, claims, defenses, limitations and/or exclusions in any
appropriate manner or forum whatsoever (including without limitation arbitration, the
United States District Courts or any state court). Nothing contained in this response
shall be deemed to expand any coverage that may otherwise be available under the
ACE Policies.
ATTORNEYS AT LAW A Pennsylvania Professional Corporation
Page 4 - Exhibit A
Case 8:10-bk-16743-TA Doc 323-3 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Exhibit A to Declaration of Matthew R. Skolnik Page 2 of 3
BLF
Todd M. Arnold, Esquire
October 15, 2010
Page 3
Please contact me to discuss at your earliest convenience. Failure to address
this matter promptly is likely to resuItin unnecessary coverage disputes with third
party claimants and unnecessary premium disputes between our clients.
Sincerely,
Matthew Skolnik
cc: Helen Heifets, Esquire
ATTORNEYS AT LAW A Pennsylvania Professional Corporation
Page 5 - Exhibit A
Case 8:10-bk-16743-TA Doc 323-3 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Exhibit A to Declaration of Matthew R. Skolnik Page 3 of 3
This form is mandatory. It has been approved for use in the United States Bankruptcy Court for the Central District of California.
October 2010 Page 1 F 4001-1.ORDER.PP

Movant: ACE AMERICAN INSURANCE COMPANY and ACE PROPERTY & CASUALTY INSURANCE COMPANY
The Motion was: Opposed Unopposed Settled by stipulation

1. The Motion affects the following personal property (Property):

Vehicle (describe year, manufacturer, type and model): _____________________________________________

Vehicle Identification Number: ____________________________
Location of vehicle (if known): ____________________________

Equipment (describe manufacturer, type, and characteristics):

Serial Number(s): _______________________________________
Location (if known): _______________________________________
Attorney or Party Name, Address, Telephone & FAX Nos., State Bar No. &
Email Address

Jeff D. Kahane (SBN 223329)
DUANE MORRIS LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5054
Telephone: 213.689.7400
Facsimile: 213.689-7401
Email: jkahane @duanemorris.com




FOR COURT USE ONLY

Attorney for Movant(s)
Movant(s) appearing without an attorney
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA SANTA ANA DIVISION
In re:
WESTCLIFF MEDICAL LABORATORIES, INC.,

Debtor.

______________________________________________

In re:

BIOLABS, INC.,

CASE NO.: 8:10-bk-16743-TA
CHAPTER: 11
ORDER GRANTING MOTION FOR RELIEF
FROM THE AUTOMATIC STAY UNDER
11 U.S.C. 362 (PERSONAL PROPERTY)
DATE: January 6, 2011
TIME: 10:00 a.m.
COURTROOM: 5B
PLACE: 411 West Fourth Street, Santa Ana, California

Debtor(s).

Case 8:10-bk-16743-TA Doc 323-4 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Proposed Order Page 1 of 5
This form is mandatory. It has been approved for use in the United States Bankruptcy Court for the Central District of California.
October 2010 Page 2 F 4001-1.ORDER.PP

Other Personal Property (describe type, identifying information, and location): Policies: G20513147, H08049610,
D37327153


See Exhibit A attached to this Order.

2. The Motion is granted under: 11 U.S.C. 362 (d)(1) 11 U.S.C. 362(d)(2)

3. As to the Movant, its successors, transferees and assigns (Movant), the stay of 11 U.S.C. 362(a) is:
a. Terminated as to Debtor(s) and Debtors(s) bankruptcy estate.
b. Annulled retroactively to the date of the bankruptcy petition filing.
c. Modified or conditioned as set for in the attached continuation page to this Order.

4. Movant may enforce its remedies to repossess or otherwise obtain possession and dispose of the Property in
accordance with applicable non-bankruptcy law, but may not pursue any deficiency claim against the Debtor(s) or
property of the estate except by filing a Proof of Claim pursuant to 11 U.S.C. 501.

5. Movant shall not repossess the Property before the following date (specify): _______________

6. The stay shall remain in effect subject to the terms and conditions set forth in the Adequate Protection Attachment
to this Order.

7. In chapter 13 cases, the trustee shall not make any further payments on account of Movants secured claim after
entry of this Order. The secured portion of Movants claim is deemed withdrawn upon entry of this Order without
prejudice to Movants right to file an amended unsecured claim for any deficiency. Absent a stipulation or order to
the contrary, Movant shall return to the trustee any payments received from the trustee on account of Movants
secured claim after entry of this Order.

8. This Court further orders as follows:

a. This Order shall be binding and effective despite any conversion of this bankruptcy case to a case under any
other chapter of Title 11 of the Bankruptcy Code.
b. The 14-day stay provided by FRBP 4001(a)(3) is waived.
c. The provisions set forth in the Extraordinary Relief Attachment shall also apply (attach Optional Form F 4001-
1O.ER).
d. See attached continuation page for additional provisions.



DATED: _____________________
United States Bankruptcy Judge

Case 8:10-bk-16743-TA Doc 323-4 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Proposed Order Page 2 of 5
This form is mandatory. It has been approved for use in the United States Bankruptcy Court for the Central District of California.
October 2010 Page 3 F 4001-1.ORDER.PP
CONTINUATION

(This Attachment is the continuation page for Paragraph 8 of the Order on the Motion.)

The stay pursuant to 11 U.S.C. 362(a) is hereby modified to allow ACE American Insurance
Company, ACE Property and Casualty Insurance Company and the affiliated insurance and reinsurance
companies to retroactively cancel the following insurance policies, said cancellation to be effective as of June
17, 2010:
Policy Number Policy Type Policy Period
G20513147 Umbrella Liability 10/1/2009 10/1/2010
H08049610
Commercial
Automobile Liability
10/1/2009 10/1/2010
D37327153
Commercial Package,
including Commercial
Property, General
Liability and Inland
Marine Policies
10/1/2009 10/1/2010






Case 8:10-bk-16743-TA Doc 323-4 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Proposed Order Page 3 of 5
This form is mandatory. It has been approved for use in the United States Bankruptcy Court for the Central District of California.
October 2010 Page 4 F 4001-1.ORDER.PP
PROOF OF SERVICE OF DOCUMENT

I am over the age of 18 and not a party to this bankruptcy case or adversary proceeding. My business address is:



A true and correct copy of the foregoing document described as ORDER GRANTING MOTION FOR RELIEF FROM THE
AUTOMATIC STAY UNDER 11 U.S.C. 362 (PERSONAL PROPERTY) will be served or was served (a) on the judge in
chambers in the form and manner required by LBR 5005-2(d); and (b) in the manner indicated below:



I. TO BE SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (NEF) Pursuant to controlling General
Order(s) and Local Bankruptcy Rule(s) (LBR), the foregoing document will be served by the court via NEF and hyperlink
to the document. On ______________, I checked the CM/ECF docket for this bankruptcy case or adversary proceeding
and determined that the following person(s) are on the Electronic Mail Notice List to receive NEF transmission at the email
address(es) indicated below:




Service information continued on attached page

II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL(indicate method for each person or entity served):
On ____________________, I served the following person(s) and/or entity(ies) at the last known address(es) in this
bankruptcy case or adversary proceeding by placing a true and correct copy thereof in a sealed envelope in the United
States Mail, first class, postage prepaid, and/or with an overnight mail service addressed as follows. Listing the judge here
constitutes a declaration that mailing to the judge will be completed no later than 24 hours after the document is filed.




Service information continued on attached page

III. SERVED BY PERSONAL DELIVERY, FACSIMILE TRANSMISSION OR EMAIL (indicate method for each person or
entity served): Pursuant to F.R.Civ.P. 5 and/or controlling LBR, on ___________________, I served the following
person(s) and/or entity(ies) by personal delivery, or (for those who consented in writing to such service method), by
facsimile transmission and/or email as follows. Listing the judge here constitutes a declaration that personal delivery on
the judge will be completed no later than 24 hours after the document is filed.




Service information continued on attached page

I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.




Date Type Name Signature

Case 8:10-bk-16743-TA Doc 323-4 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Proposed Order Page 4 of 5
This form is mandatory. It has been approved for use in the United States Bankruptcy Court for the Central District of California.
October 2010 Page 5 F 4001-1.ORDER.PP
NOTICE OF ENTERED ORDER AND SERVICE LIST

Notice is given by the court that a judgment or order entitled (specify) ORDER ON MOTION FOR RELIEF FROM THE
AUTOMATIC STAY UNDER 11 U.S.C. 362 (PERSONAL PROPERTY) was entered on the date indicated as
AEntered@ on the first page of this judgment or order and will be served in the manner indicated below:




I. SERVED BY THE COURT VIA NOTICE OF ELECTRONIC FILING (ANEF@) B Pursuant to controlling General
Order(s) and Local Bankruptcy Rule(s), the foregoing document was served on the following person(s) by the court via
NEF and hyperlink to the judgment or order. As of _____________________, the following person(s) are currently on the
Electronic Mail Notice List for this bankruptcy case or adversary proceeding to receive NEF transmission at the email
address(es) indicated below.







Service information continued on attached page

II. SERVED BY THE COURT VIA U.S. MAIL: A copy of this notice and a true copy of this judgment or order was sent by
United States Mail, first class, postage prepaid, to the following person(s) and/or entity(ies) at the address(es) indicated
below:






Service information continued on attached page

III. TO BE SERVED BY THE LODGING PARTY: Within 72 hours after receipt of a copy of this judgment or order which
bears an AEntered@ stamp, the party lodging the judgment or order will serve a complete copy bearing an AEntered@
stamp by U.S. Mail, overnight mail, facsimile transmission or email and file a proof of service of the entered order on the
following person(s) and/or entity(ies) at the address(es), facsimile transmission number(s), and/or email address(es)
indicated below:






Service information continued on attached page

Case 8:10-bk-16743-TA Doc 323-4 Filed 12/10/10 Entered 12/10/10 12:22:05 Desc
Proposed Order Page 5 of 5