IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF KANSAS. IN RE: ) ) Case No MISSION GROUP KANSAS, INC. ) ) Chapter 7 Debtor.

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1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF KANSAS IN RE: ) ) Case No MISSION GROUP KANSAS, INC. ) ) Chapter 7 Debtor. ) STIPULATED JOINT MOTION OF CHAPTER 7 TRUSTEE AND PLAINTIFFS STEPHANIE AYALA ET. AL. FOR ENTRY OF ORDER LIFTING AUTOMATIC STAY FOR CAUSE COME NOW Carl R. Clark, Chapter 7 Trustee, and Stephanie Ayala et al., plaintiffs in a lawsuit pending against Debtor, Mission Group Kansas, Inc., in the United States District Court for Western District of Missouri, styled as Stephanie Ayala et al. v. Mission Group Kansas Inc. dba Wright Career College, Board of Directors of Mission Group Kansas Inc., John Mucci, Stephen Browne, and Ron Holt, Case No. 4:14-cv BP (the Ayala Lawsuit ), and move this Court pursuant to 11 U.S.C. 362(d)(1) to enter an Order lifting the automatic stay of the Ayala Lawsuit to allow for mediation and negotiation of a potential settlement. In support of this Motion, Movants state the following: 1. This Court has jurisdiction to hear and determine this Motion pursuant to 28 U.S.C. 157(b)(2)(G). 2. This Court is the proper venue for this Motion pursuant to 28 U.S.C and On April 15, 2016 (the Petition Date ), Debtor, Mission Group Kansas, Inc., filed a voluntary petition for relief under chapter 7 of title 11 of the United States Case Doc# 151 Filed 07/20/16 Page 1 of 5

2 Code in the United States Bankruptcy Court for the District of Kansas at Kansas City (the Court ). 4. Carl Clark has been duly appointed and is now serving as the Chapter 7 Trustee for the Debtor. 5. Debtor does not oppose this Motion. 6. On November 1, 2013, Stephanie Ayala and other plaintiffs (collectively, the Ayala Lawsuit Plaintiffs ) filed the Ayala Lawsuit against Debtor and the other named defendants in the Circuit Court of Jackson County, Missouri. The Ayala Lawsuit was removed (on or about October 8, 2014) to and is currently pending in the United States District Court for the Western District of Missouri as case number 4:14-cv BP. The claims alleged by the Ayala Lawsuit Plaintiffs sound in fraudulent misrepresentation, negligent misrepresentation, negligent hiring/retention and related claims. 7. Due to the filing of a chapter 7 bankruptcy by the Debtor, the continued litigation of the Ayala Lawsuit as to the Debtor is stayed pursuant to 11 U.S.C. 362(a). 8. Upon information and belief, the Debtor has available insurance coverage against liability that could satisfy the claims set forth in the Ayala Lawsuit without resulting in any further liability against the Debtor. The relief sought in this Motion is the granting of limited stay relief to allow the parties to the Ayala Lawsuit to participate in a mediation of the claims asserted therein. 9. This Court has the authority to lift the automatic stay and allow the Ayala Lawsuit mediation to proceed. On request of a party in interest and after notice and a hearing, the court shall grant relief from the stay provided under [Section 362(a)] such as Case Doc# 151 Filed 07/20/16 Page 2 of 5

3 by terminating, annulling, modifying, or conditioning such stay (1) for cause, including the lack of adequate protection of an interest in property of such party in interest; 11 U.S.C. 362(d)(1). When deciding if cause to lift the stay exists -- with respect to pending litigation in another forum -- the bankruptcy courts in the 10 th Circuit look to the 12 factors originally compiled in In Re Curtis, 40 B.R. 795, (Bankr. D. Utah 1984). The Curtis Factors are: (1) whether the relief would result in a partial or complete resolution of the issues; (2) the lack of any connection or interference with the bankruptcy case; (3) whether the foreign proceeding involves the debtor as a fiduciary; (4) whether a specialized tribunal has been established to hear the particular cause of action and that tribunal has the expertise to hear such cases; (5) whether the debtor's insurance carrier has assumed full financial responsibility for defending the litigation; (6) whether the action essentially involves third parties, and the debtor functions only as a bailee or conduit for the goods or proceeds in question; (7) whether litigation in another forum would prejudice the interests of other creditors, the creditors' committee and other interested parties; (8) whether the judgment claim arising from the foreign action is subject to equitable subordination under Section 510(c); (9) whether movant's success in the foreign proceeding would result in a judicial lien avoidable by the debtor under Section 522(f); (10) the interest of judicial economy and the expeditious and economical determination of litigation for the parties; (11) whether the foreign proceedings have progressed to the point where the parties are prepared for trial; and (12) the impact of the stay on the parties and the balance of the hurt. In re Curtis, 40 B.R. 795, (Bankr. D.Utah 1984). The Curtis factors have been widely adopted by bankruptcy courts. In re Busch, 294 B.R. 137, 141 (10th Cir. BAP 2003). 10. Trustee and the Ayala Lawsuit Plaintiffs request that the Court waive the 14-day period found in Rule 4001(a)(3) of the Federal Rules of Bankruptcy Procedure to allow the Order for Relief from Stay to become final upon its entry without having to wait Case Doc# 151 Filed 07/20/16 Page 3 of 5

4 14 days, because scheduling of the mediation and coordination of the various parties involved cannot proceed until the stay is lifted. WHEREFORE, the Trustee and the Ayala Lawsuit Plaintiffs hereby request and stipulate to the Court entering an Order granting relief from the automatic stay imposed by 11 U.S.C. 362 to permit the Ayala Lawsuit Plaintiffs and the Trustee to proceed with mediation of the claims asserted in the Ayala Lawsuit, and request this Court waive the 14-day waiting period found in Federal Rule of Bankruptcy Procedure 4001(a)(3) and allow the Order to become final upon its entry; and for such other relief as is just and proper. Dated: July 20, 2016 Respectfully submitted, LENTZ CLARK DEINES PA s/ Carl R. Clark Carl R. Clark, KS # Jeffrey A. Deines, KS # Glenwood Overland Park, KS (913) (913) Telecopier cclark@lcdlaw.com jdeines@lcdlaw.com Trustee/Counsel to Chapter 7 Trustee And: HUMPHREY, FARRINGTON & McCLAIN, P.C. s/ Andrew K. Smith Kenneth B. McClain #32430 Andrew K. Smith #60485 Case Doc# 151 Filed 07/20/16 Page 4 of 5

5 Lauren E. McClain # W. Lexington, Suite 400 P.O. Box 900 Independence, Missouri (816) (816) FAX ATTORNEYS FOR AYALA LAWSUIT PLAINTIFFS CERTIFICATE OF SERVICE I hereby certify that on July 20, 2016, a true and correct copy of the above and foregoing Motion was electronically filed with the court using the CM/ECF system, which sent notification to all parties of interest participating in the CM/ECF system. s/ Carl R. Clark Carl R. Clark Case Doc# 151 Filed 07/20/16 Page 5 of 5