PLEASE TAKE NOTICE, that upon the attached Declaration of Michael. Goldstein, Esq., dated May 13, 2016, the annexed Exhibits, and the Memorandum of

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1 shl Doc 1925 Filed 05/17/16 Entered 05/17/16 12:35:36 Main Document Pg 1 of 2 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re : : ATLANTIC EXPRESS OF NEW JERSEY, INC. : : Debtor. : x Chapter 11 NOTICE OF MOTION TO LIFT AUTOMATIC STAY Case No.: (SHL) PLEASE TAKE NOTICE, that upon the attached Declaration of Michael Goldstein, Esq., dated May 13, 2016, the annexed Exhibits, and the Memorandum of Law, the undersigned on behalf of Sherry Driscoll, a plaintiff in an action against ATLANTIC EXPRESS OF NEW JERSEY, INC. that is presently stayed, will move at a hearing to be held at the United States Bankruptcy Court, before the Honorable Sean H. Lane at the United States District Courthouse, located at One Bowling Green, Room 701, New York, New York on June 14, 2016 at 10:00 A.M., or as soon thereafter as counsel may be heard, for an Order lifting the automatic stay in that action and for such other and further relief as may be just, proper and equitable. Dated: New York, New York May 16, 2016 Yours, etc., DILLON HOROWITZ & GOLDSTEIN LLP Of Counsel to Ronald DeSimone, Esq. Attorneys for SHERRY DRISCOLL By /s/ MICHAEL GOLDSTEIN (4884) 11 Hanover Square, 20th Floor New York, New York (212) mgoldstein@dhgattorneys.com 1

2 shl Doc 1925 Filed 05/17/16 Entered 05/17/16 12:35:36 Main Document Pg 2 of 2 TO: AKIN STRAUSS HAUER & FELD LLP Attorneys for Debtor ATLANTIC EXPRESS OF NEW JERSEY, INC. One Battery Park New York, New York (212) (212) fax Attn: Rachel Ehrlich Albanese, Esq. ralbanese@akingump.com DEMSTER & HADDIX Attorneys for Defendant (New Jersey Superior Court Action) ATLANTIC EXPRESS OF NEW JERSEY, INC. Centerpointe at East Gate 161 Gaither Drive, Suite 201 Mt. Laurel, New Jersey (856) (856) fax Attn: John N. Kaelin, Esq. John.kaelinIII@aig.com ATLANTIC EXPRESS OF NEW JERSEY, INC. 7 North Street Staten Island, New York (Outside Home State) U.S. Trustee United States Trustee Office of the United States Trustee 201 Varick Street, Room 1006 New York, New York (212) Claims and Noting Agent Kurtzman Carson Consultants LLC, Claims Agent Attn: James Le 2335 Alaska Avenue El Segundo, California (310)

3 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Order Pg 1 of 2 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re : : ATLANTIC EXPRESS OF NEW JERSEY, INC. : : Debtor. : x Chapter 11 DECLARATION OF MICHAEL GOLDSTEIN Case No.: (SHL) MICHAEL GOLDSTEIN, an attorney duly admitted to practice before this Court, affirms: 1. I am of counsel to Ronald DeSimone, Esq., 900 North Kings Highway, Cherry Hill, New Jersey 08034, attorney of record for Sherry Driscoll with regard to the case of Driscoll v. Atlantic Express of New Jersey, Inc. (the State Court Action ), Inc., Docket No. BUR-L , presently pending in Burlington County Superior Court, New Jersey. A copy of the complaint is annexed as Exhibit A. 2. On or about April 20, 2015, notice of the pending bankruptcy proceeding involving ATLANTIC EXPRESS OF NEW JERSEY, INC. (hereinafter Debtor ) was provided to the Burlington County Court (see Exhibit B ) and as a result the matter has been stayed. 3. Ms. Driscoll s case involves a claim for personal injuries against Debtor which has provided proof that it has insurance coverage for Ms. Driscoll s claim. See Exhibit C. 4. Ms. Driscoll wishes to continue her state court claim solely to the extent of Debtor s insurance and will not seek any recovery from Debtor itself. 1

4 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Order Pg 2 of 2 5. Accordingly, it is respectfully requested that the Court issue an order lifting the stay in the State Court Action and providing that the enforcement of any claim or judgment obtained in that action against the Debtor shall be limited to available insurance proceeds. Dated: New York, New York May 16, 2016 /s/ MICHAEL GOLDSTEIN (4884) 2

5 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Supplement Pg 1 of 2 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re : : ATLANTIC EXPRESS OF NEW JERSEY, INC. : : Debtor. : x Chapter 11 ORDER MODIFYING AUTOMATIC STAY Case No.: (SHL) WHEREAS, on or about November 14, 2013 the above captioned debtor (the Debtor ) filed a voluntary petition under Chapter 11 of the Bankruptcy Code. WHEREAS, on or about April 20, 2015, the action of Sherry Driscoll v. Atlantic Express of New Jersey, Inc., in Superior Court, Burlington County, New Jersey ( State Court Action ), under Docket No. BUR-L was stayed. WHEREAS, the plaintiff in the State Court Action has agreed to limit any recovery to the available insurance of the Debtor in the State Court Action; NOW, in consideration of the above stated premises, IT IS HEREBY, ORDERED, as follows: 1. The automatic stay in this case is hereby modified to permit the full litigation of the State Court Action for the purposes of the determination of, among other issues, the liability, if any, of the Debtor in the State Court Action. 2. Any judgment obtained against the Debtor in the State Court Action shall not be asserted as a claim in the Chapter 11 case of the Debtor or otherwise be enforceable against the Debtor and shall not create a lien upon any property of the Debtor. 1

6 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Supplement Pg 2 of 2 3. The enforcement of any claim or judgment obtained by the plaintiff against the Debtor in connection with the State Court Action is expressly limited to the amount of any insurance proceeds available at the time of final disposition of the State Court Action under any applicable policy of insurance maintained by the Debtor. 4. No judgment shall be entered in the State Court Action against the Debtor for any amount in excess of the insurance coverage maintained by the Debtor. Dated: New York, New York May 16, 2016 IT IS SO ORDERED: Dated: New York, New York, 2016 HON. SEAN H. LANE United State Bankruptcy Judge 2

7 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 1 of 8

8 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 2 of 8

9 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 3 of 8

10 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 4 of 8

11 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 5 of 8

12 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 6 of 8

13 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 7 of 8

14 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit A Pg 8 of 8

15 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit B Pg 1 of 3

16 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit B Pg 2 of 3 r- DEMPSTER & HADDIX By: John N. Kaelin, III, Esquire Centerpointe at East Gate 161 Gaither Drive, Suite 201 Mt. Laurel, New Jersey ~ (856) a (855) >--t&d john.kaeliniii@aig.com Attorneys for Defendant, Atlantic Express of New Jersey, Inc. NJMH JNK SHERRY DRISCOLL v. Plaintiffs, SUPERIOR COURT OF NEW JERSEY LAW DIVISION BURLINGTON COUNTY Docket No.: BUR-L ATLANTIC EXPRESS OF NEW JERSEY, INC., MOORESTOWN FRIENDS SCHOOL, JOHN DOES and ABC CORPORATION, jointly, severally and in the alternative, Defendants, SUGGESTION OF BANKRUPTCY FOR ATLANTIC EXPRESS OF NEW JERSEY, INC. AND CERTAIN OF ITS AFFILIATES PLEASE TAKE NOTICE that on November 4, 2013, a voluntary petition for relief under chapter 11 of title 11 of the United States Code (the "Bankruptcy Code") was filed in the United States Bankruptcy Court for the Southern District of New York (the "Bankruptcy Court"), by Atlantic Express of

17 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit B Pg 3 of 3,--. New Jersey, Inc. and certain of its affiliates, as debtors and debtors in possession (collectively, the "Debtors") under petition number PLEASE TAKE FURTHER NOTICE that, the commencement of the abovereferenced constitutes an order for relief under chapter 11 of th~ Bankruptcy Code as to each of the Debtors. A copy of the petition for Atlantic Express of New Jersey, Inc. is attached hereto as Exhibit A. PLEASE TAKE FURTHER NOTICE that pursuant to 11 U.S.C. 362(a), the Debtors' commencing chapter 11 case operates as a stay, applicable to all entities, of, among other things: (a) the commencement or continuation of a judicial, administrative, or other action or proceeding against the Debtors (i) that was or could have been commenced before the commencement of the Debtors' cases or (ii) to recover a claim against the Debtors that arose before the commencement of the Debtors' cases; (b) the enforcement, against the Debtors or against any property of the Debtors' bankruptcy estates, of a judgment obtained before the commencement of the Debtors' cases; or (c) any act to obtain possession of property of or from the Debtors' bankruptcy estates, or to exercise control over property of the Debtors' bankruptcy estates. lli~ r /r:a-td- Jbfl.N N. KAELIN, III D~~STER & HADDIX 161 Gaither Drive -Suite 201 Mount Laurel, New Jersey Telephone: (856) Facsimile: (855) Dated: April 20, 2015

18 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit C Pg 1 of 5

19 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit C Pg 2 of 5 Binder For Casualty Insurance Program for ATLANTIC EXPRESS TRANSPORTATION CORP. In consultation with your Representative MARSH USA INC by A'TIA ~'r ~\ _t;:... CHARTIS ~ Commercial Casualty Transportation - Risk Management NOTICE THESE POLICY FORMS AND THE APPLICABLE RATES ARE EXEMPT FROM THE FILING REQUIREMENTS OF THE NEW YORK STATE INSURANCE LAW AND REGUlATIONS. HOWEVER, THE FORMS AND RATES MUST MEET THE MINIMUM STANDARDS OF THE NEW YORK INSURANCE LAW AND REGULATIONS. PREPARED BY: EMILY DRISCOLL ' DATED: 04/01/2013 EFFECTIVE DATE: 03/01/2013 EXPIRATION DATE: 03/01/

20 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit C Pg 3 of 5 SECTION 1 - POLICY NUMBERS. POLICY COMPANIES Policy Number States Covered Issuing Company Line of Business CA CA,NJ,NY,PA National Union Fire Insurance Company of Pittsburgh, Pa. Automobile Liability CA NY National Union Fire Insurance Company of Pittsburgh, Pa. Automobile Liability GL CA,MA,NJ,NY,PA National Union Fire Insurance General Liability (Liability other than Company of Pittsburgh, Pa. Automobile) New Hampshire Insurance Statutory Workers' Compensation we MA Company and Employers' Liability New Hampshire Insurance Statutory Workers' Compensation we NJ,PA Company and Employers' Liability New Hampshire Insurance Statutory Workers' Compensation we CA Company and Employers' Liability New Hampshire Insurance Statutory Workers' Compensation we NY Company and Employers' Liability ACKNOWLEDGED ON BEHALF OF: Risk Management By (Print Name): By(Signature) : Title: Date: Insured: ATLANTIC EXPRESS TRANSPORTATION CORP By (Print Name): By(Signature) : Title: Date: Broker: MARSH USA INC By (Print Name): By(Signature) : Title: Date:

21 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit C Pg 4 of 5 TOTAL GL!Workers Compensation (TRIPRA) Terrorism Charges Included in Premium By Line of Business Rejected!Automobile Liability (Terrorism) Rejected where permitted Summary of Program Structure and Loss Picks Compensation Line Of Business Coverage Plan Type Cover Retention,Deductible Retention/ Deductible/ SIR $500, $50, bile Liability $500,

22 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Exhibit C Pg 5 of 5 Business Auto Effective: 12:01 AM 03/01/2013 Liability Coverage Coverage Symbol(s) Limits Liability Limit 10 $1,000,000 Personal Injury Protection -Per Insured's Selection 5 Rejection/Basic Benefits by State Medical Payments - Each Person Insured 2 $5,000 Uninsured Motorists/Underinsured Motorists - Rejection where Possible/ Per Insured's Selection Minimum Limits 6 Kinds of Insurance Deductible Applicable To -- Automobile Liability, including UM/UIM/PIP/APIP The Entire Contract Each Accident $500,000 Note: 1 J For Insured States, the limit of coverage as shown in this document include(s) the Deductible/Retention Limit layer amount(s} retained by the Insured. 2} For Self-Insured States, the limits of liability shown are in excess!1!. the Self Insured Retention amount. 3) Aggregate Limits apply where applicable. The UM/UIM Limit in the state of New Jersey will be $1M. Limits in all other states will be rejection/minimum limits where required. Coverage Extensions and Exclusions Name Form# Edition Date BUSINESS AUTO COVERAGE FORM CA Valid in All States 03/10 except in CA,NY BUSINESS AUTO COVERAGE FORM CA Valid only in CA,NY 03/06 All Mandatory State Endorsements Various -

23 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Supplement Pg 1 of 2 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK x In re : : ATLANTIC EXPRESS OF NEW JERSEY, INC. : : Debtor. : x Chapter 11 Case No.: (SHL) MEMORANDUM OF LAW This memorandum of law is submitted in support of the Motion to Lift the Automatic Stay triggered when ATLANTIC EXPRESS NEW JERSEY, INC. ( Debtor ) filed for bankruptcy under Chapter 11 of the Bankruptcy Code. Pursuant to Section 362 of the Bankruptcy Code, a Court may grant relief from the automatic stay for cause. In this case, there is no prejudice to Debtor, their estate, or to any other creditors in the Bankruptcy Action. Debtor has insurance coverage substantial enough to cover their liability in the State Court Action. Furthermore, we are seeking an Order which will limit potential recovery against Debtor to the available insurance coverage at the time of the judgment or settlement. New York Bankruptcy Courts have lifted an automatic stay when parties agree to potential recovery by to assets outside the debtor s estate. See e.g., In re Grace Indus., Inc., 341 B.R. 399, 405 (Bankr. E.D.N.Y. 2006) (holding that when the parties have agreed that they will not seek any recovery from the estate assets, there is no basis for continuing the automatic stay ). WHEREFORE, it is respectfully requested that the court issue an Order granting the relief sought by lifting the stay and allowing the State Court Action to proceed with recovery limited to the extent of insurance coverage. 1

24 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Supplement Pg 2 of 2 Dated: New York, New York May 16, 2016 Yours, etc., DILLON HOROWITZ & GOLDSTEIN LLP Of Counsel to Ronald DeSimone, Esq. Attorneys for SHERRY DRISCOLL By /s/ MICHAEL GOLDSTEIN (4884) 11 Hanover Square, 20th Floor New York, New York (212) mgoldstein@dhgattorneys.com 2

25 shl Doc Filed 05/17/16 Entered 05/17/16 12:35:36 Certificate of Service Pg 1 of 1 CERTIFICATE OF SERVICE I hereby certify that on May 17, 2016, 2014, I served a true and correct copy of NOTICE OF MOTION TO LIFT AUTOMATIC STAY, DECLARATION OF MICHAEL GOLDSTEIN and MEMORANDUM OF LAW (with attached proposed order) via first-class mail, postage prepaid on the following person(s) at the last known address set forth after each name and electronically filling same on the Electronic Case Filing Rules website: AKIN STRAUSS HAUER & FELD LLP Attorneys for Debtor ATLANTIC EXPRESS OF NEW JERSEY, INC. One Battery Park New York, New York Attn: Rachel Ehrlich Albanese, Esq. ralbanese@akingump.com DEMSTER & HADDIX Attorneys for Defendant (New Jersey Superior Court Action) ATLANTIC EXPRESS OF NJ, INC. Centerpointe at East Gate 161 Gaither Drive, Suite 201 Mt. Laurel, New Jersey Attn: John N. Kaelin, Esq. John.kaelinIII@aig.com ATLANTIC EXPRESS OF NEW JERSEY, INC. 7 North Street Staten Island, New York (Outside Home State) U.S. Trustee United States Trustee Office of the United States Trustee 201 Varick Street, Room 1006 New York, New York Claims and Noting Agent Kurtzman Carson Consultants LLC, Claims Agent Attn: James Le 2335 Alaska Avenue El Segundo, California /s/ Prescilla Mayo PRESCILLA MAYO