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

URT USE ONLY

Jeff D. Kahane (CSB No. 223329)
Duane Morris LLP
865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5450
Telephone: (213) 689-7400
Facsimile: (213) 689-7401
Email: JKahane@duanemorris.com
o Individual appearing without counsel
[8J Attorney for: ACE American Insurance Company, et al.
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: September 13, 2011
In re:
TIME: 10:30 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, et al.)
(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 Debtor's(s') bankruptcy estate on the grounds set forth in the
attached Motion.
2. Hearing Location: o 255 East Temple Street, Los Angeles
021041 Burbank Boulevard, Woodland Hills
o 3420 Twelfth Street, Riverside
[8J 411 West Fourth Street, Santa Ana
01415 State Street, Santa Barbara
3. a. [8J 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. 0 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:
o at the hearing 0 at least __ court days before the hearing.
(1) 0 A Motion for Order Shortening Time was not required (according to the calendaring procedures of the assigned judge).
(2) 0 A Motion for Order Shortening Time was filed per Local Bankruptcy Rule 9075-1 (b) and was granted by the Court.
(3) 0 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 4001-1 M.RES), 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 forrn is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1 M.PP
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Main Document Page 1 of 9
Motion for Relief from Stay (Personal Property) - Page 2 of 9
F 4001-1 M.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: August 15, 2011
DUANE MORRIS LLP
Print Law Firm Name (if applicable)
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 4001-1 M.PP
Case 8:10-bk-16743-TA Doc 525 Filed 08/15/11 Entered 08/15/11 14:04:58 Desc
Main Document Page 2 of 9
Motion for Relief from Stay (Personal Property) - Page 3 of 9
F 4001-1 M.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
(MOVANT: ACE AMERICAN INSURANCE COMPANY)
1. The Property at Issue: Movant moves for relief from the automatic stay with respect to the following personal property (the "Property"):
D Vehicle (describe year, manufacturer, type, and model):
Vehicle Identification Number:
Location of vehicle (if known):
D Equipment (describe manufacturer, type, and characteristics):
Serial number(s):
Location (if known):
IZI Other Personal Property (describe type, identifying information, and location):
Payment of an arbitration award between ACE American Insurance Company, ACE Property Casualty Insurance
Company and the affiliated insurance and reinsurance companies (collectively, "ACE") and Wawanesa General
Insurance Company ("Wawanesa") under Debtor's Policy H08049610.
2. Case History:
a. IZI A voluntary D An involuntary petition under Chapter D 7 IZI 11 D 12 D 13
was filed on (specify date): 5/19/10
b. D An Order of Conversion to Chapter
was entered on (specify date):
c. D Plan was confirmed on (specify date):
D 7 D 11 D 12 D 13
d. D Other bankruptcy cases affecting this Property have been pending within the past two years. See attached Declaration.
3. Grounds for Relief from Stay:
a. IZI Pursuant to 11 U.S.C. 362(d)(1), cause exists to grant Movant the requested relief from stay as follows:
(1) D Movant's interest in the Property is not adequately protected.
(a) D Movant's interest in the collateral is not protected by an adequate equity cushion.
(b) D 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) D 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) D Payments have not been made as required by an Adequate Protection Order previously granted in this case.
(2) D The bankruptcy case was filed in bad faith to delay, hinder or defraud Movant.
(a) D Movant is the only creditor or one of very few creditors listed on the master mailing matrix.
(b) D The Property was transferred to Debtor(s) either just before the bankruptcy filing or since the filing.
(c) D Non-individual entity was created just prior to bankruptcy filing for the sole purpose of filing bankruptcy.
(d) D Other bankruptcy cases have been filed asserting an interest in the same Property.
(e) D The Debtor( s) filed what is commonly referred to as a "face 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.
(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 4001-1 M.PP
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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.
Oebtor(s). CASE NO.: 8:10-bk-16743-TA
(3) D (Chapter 12 or 13 cases only)
(a) D Postconfirmation plan payments have not been made to the standing trustee.
(b) D Postconfirmation payments required by the confirmed plan have not been made to Movant.
(4) D The lease has been rejected or deemed rejected by operation of law.
(5) [8J For other cause for relief from stay, see attached continuation page.
b. D Pursuant to 11 U.S.C. 362(d)(2)(A), Oebtor(s) has/have no equity in the Property; and pursuant to 362(d)(2)(B), the
Property is not necessary for an effective reorganization.
4. D 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 Oeclaration(s).
5. Evidence in Support of Motion: {Important Note: Declaration(s} in support of the Motion MUST be attached hereto.}
a. D Movant submits the attached Oeclaration(s) on the Court's approved forms (if applicable) to provide evidence in support of
this,Motion pursuant to Local Bankruptcy Rules.
b. [8J Movant submits the attached supplemental Oeclaration(s) under penalty of perjury, to provide additional admissible evidence
in support of this Motion.
c. D Movant requests that the Court consider as admissions the made by Oebtor(s) under penalty of conceming
Movant's claims and the Property set forth in Oebtor's(s') Schedules. Authenticated copies of the relevant portions of the
Schedules are attached as Exhibit __
d. D Other evidence (specify):
6. [8J 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. [8J Relief from the stay allowing Movant (and any successors or assigns) to proceed under applicable non-bankruptcy law to enforce
its remedies to repossess and sell the Property.
2. D Annulment of the stay so that the filing of the bankruptcy petition does not affect postpetition acts, as specified in the attached
Oeclaration( s).
3. Additional provisions requested:
a. [8J 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. [8J That the 14-day stay prescribed by Bankruptcy Rule 4001 (a)(3) be waived.
c. D That Extraordinary Relief be granted as set forth in the Attachment (attach Optional Court Form F 4001-1M.ER).
d. D 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 4001-1 M.PP
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Main Document Page 4 of 9
Motion for Relief from Stay (Personal Property) - Page 5 of 9
F 40011M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Debtor(s). CASE NO.: 8:10-bk-16743-TA
4. If relief frem stay is not granted, Mo,,'ant respectfully requests the Court to order adequate protection.
Dated: August 15, 2011 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: /s/ Jeff D. Kahane
Signature
Name: Jeff D. Kahane
Typed Name 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 525 Filed 08/15/11 Entered 08/15/11 14:04:58 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
CONTINUATION
(This Attachment is the continuation page for page 4 of the Motion for Relief From Stay, Ground for Relief
paragraph 3(a)(5).)
There is cause to grant this motion. ACE provided auto insurance to the Debtors under policy H0804961 0 (the
"Policy") from October 1, 2009 until June 17, 2010. During the Policy period, an accident took place which involved
Debtors' employee and Turville, a third party insured by Wawanesa.
An inter-company arbitration between ACE and Wawanesa resulted in an arbitration award in the amount of
$3,008.03 (the "Award"). Insurance policies are property of the Estate. If coverage for the Award is property of the estate,
then ACE cannot satisfy the Award unless it is granted a relief from automatic stay under Section 362 of the Bankruptcy
Code. Wawanesa and Turville have agreed that upon payment of the Award, they would waive all their claims against the
Estate. Cause exists to lift the stay, because if ACE does not pay the Award, then the claimants may have rights against
other assets of the Debtors' estate.
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1 M.PP
Case 8:10-bk-16743-TA Doc 525 Filed 08/15/11 Entered 08/15/11 14:04:58 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 CM/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 and Motion for Relief of Automatic Stay
Under 11 U.S.C. 362 (with supporting declarations); Memorandum of Points and Authorities in Support of ACE
American Insurance Company's Motion for Relief from Automatic Stay for the Purpose of Payment of Arbitration
Award and Declaration of Helen Heifets in Support of Motion for Relief of Automatic Stay for the Purpose of
Payment of Arbitration Award
__________________________ 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 (nNEFn) - Pursuant to controlling General
Order(s) and Local Bankruptcy Rule(s) ("LBR"), the foregoing document will be served by the court via NEF and hyperlinkto
the document. On August 15, 2011 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 addressed indicated below:
IZI Service information continued on attached page
II. SERVED BY U.S. MAIL OR OVERNIGHT MAIL (indicate method for each person or entity served):
On August 15, 2011 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 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 and/or controlling LBR, onl 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 mailing to the judge will be completed no later
than 24 hours after the document is filed.
D 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.
~
SIgnature
August 15, 2011
Date
Greta Clark
Type Name
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
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Main Document Page 7 of 9
Motion for Relief from Stay (Personal Property) - Page 8 of 9
F 4001-1 M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Oebtor(s). CASE NO.: 8:10-bk-16743-TA
SERVICE LIST
Via Court's ECF System
Raymond G Alvarado - ralvarado@alvaradosmith.com
Todd M Arnold - tma@lnbrb.com
Phillip Ashman - mgolod@mcqueenashman.com,
pashman@mcqueenashman.com;bkumamoto@mcqueenashman.com
Richard L Barnett - rick@barnettrubin.com, rlbsec@barnettrubin.com
Ron Bender - rb@lnbrb.com
Eric S Bershatski - ericbershatski@tilemlaw.com
Ronald K Brown - rkbgwhw@aoLcom
Jennifer Witherell Crastz - jcrastz@hemar-rousso.com
Carol J Fogleman - mfrost@bwslaw.com
Anthony A Friedman - aaf@lnbrb.com
John-Ptrick M Fritz - jpf@lnbrb.com
Jeffrey K Garfinkle - bkgroup@buchalter.com, jgarfinkle@buchalter.com;jmealey-
hatch@buchalter.com;docket@buchalter.com
Fredric Glass - fglass@fairharborcapitaLcom
Nancy S Goldenberg - nancy.goldenberg@usdoj.gov
D Edward HaY$ - ehays@marshackhays.com
Michael J Heyman - michaeLheyman@klgates.com
Mark D Houle - mark.houle@pillsburylaw.com
Jacqueline L James - jlj@lnbyb.com
Jeff D Kahane - jkahane@duanemorris.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 - michaeLlubic@klgates.com
Frank F McGinn- ffm@bostonbusinesslaw.com
Elissa Miller - emiller@sulmeyerlaw.com, asokolowski@sulmeyerlaw.com
Aram Ordubegian - ordubegian.aram@arentfox.com
Ernie Zachary Park - ernie.park@bewleylaw.com
Richard Park - Richard.Park@usdoj.gov
Justin E Rawlins - jrawlins@winston.com, dockeUa@winston.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, rauLmorales@hro.com
Joseph M Welch - jwelch@buchalter.com, jmealey-hatch@buchalter.com;docket@buchalter.com
Johnny White -seb@blakeleyllp.com; bblakeley@blakeleyllp.com; rclifford@blakeleyllp.com
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1M.PP
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Main Document Page 8 of 9

Motion for Relief from Stay (Personal Property) - Page 9 of 9
F 4001-1 M.PP
In re (SHORT TITLE)
CHAPTER: 11
Westcliff Medical Laboratories, Inc.
Callahan & Blaine
3 Hutton Centre Dr #900
Santa Ana, CA 92707
Department of Health Care
Services
Office of Legal Services
Attn: Steven A. Oldham, Staff
Attorney
MS 0010
P.O. Box 997413
Sacramento, CA 95899-7413
Kirkland & Ellis LLP
300 N LaSalle St
Chicago, IL 60654
Debtor(s). CASE NO.: 8:10-bk-16743-TA
SERVICE LIST (continued)
VIA U.S. MAIL
City and County of San
Francisco
Office of the TreasurerlTax
Collector
Legal Section
Attn: Robert L. Fletcher, Jr.,
P.O. Box B 7426
San Francisco, CA 94120-7426
David W Gee
Garvey Schubert Barer
1191 Second Ave 18th FI
Seattle, WA 98101-2939
Orange County Treasurer-Tax
Collector
Hall of Administration
333 W. Santa Ana Blvd.
Santa Ana, CA 92701
Debt Acquisition Company of
America V, LLC
1565 Hotel Circle South, Suite
310
San Diego, CA 92108
Recy Hernandez
27615 Glasser Ave
Canyon Country, CA 91351
Riverside Claims
Post Office Box 626
Planetarium Station
New York, NY 10024-0540
This form is mandatory by Order of the United States Bankruptcy Court for the Central District of California.
December 2009 F 4001-1 M.PP
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MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1867486.1 1
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
(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 COMPANYS
MOTION FOR RELIEF FROM THE
AUTOMATIC STAY FOR THE PURPOSE
OF PAYMENT OF ARBITRATION
AWARD

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MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1867486.1 2
ACE American Insurance Company, ACE Property and Casualty Insurance Company and
the affiliated insurance and reinsurance companies (collectively, ACE), hereby move for relief
from the automatic stay for the purpose of payment of an arbitration award to Wawanesa General
Insurance Company (Wawanesa) and respectfully state as follows:
INTRODUCTION
The Court should find there is cause to grant this motion because ACE seeks relief from the
stay to pay claims that might otherwise have to be satisfied from assets of the estate.
ACE provided auto insurance to the Westcliff Medical Laboratories (Westcliff) under
policy H08049610 (Policy) from October 1, 2009, until June 17, 2010. (Declaration of Helen
Heifets in Support of Motion for Relief from The Automatic Stay for the Purpose of Payment of
Arbitration Award (Heifets Dec.), filed contemporaneously herewith, 2.) During the period
when the Policy was in effect, an accident took place which involved Miguel Reza, then an
employee of Westcliff insured under the Policy, and Turville, a third party insured by Wawanesa.
(Id., 3.) In September 2010, Wawanesa and Turville (Claimants) submitted claims against the
Policy to ACE for losses that allegedly occurred before June 17, 2010. (Id., 4.)
An inter-company arbitration between ACE and Wawanesa resulted in an arbitration award
in the amount of $3,008.03 in favor of Wawanesa (Award). (Id., 5.) Attached to the Heifets
Dec. is a stipulation agreed by ACE, Wawanesa and Turville (Stipulation). (Id.) In the
Stipulation, the Claimants agreed to waive their claims against the estate upon payment of the
Award. (Id.) Thus, payment of the Award by ACE is in the best interest of the estate because it
preserves the assets of the estate.
Insurance policies are property of the estate. Although cancellation of the Policy was
approved by the Court on January 3, 2011, see Order Granting Stipulation Resolving Relief From
Stay Motion was signed and entered (Docket No. 342), the claims were made before the Policys
cancellation. (Heifets Dec., 4). If the insurance coverage for payment of the Award involves
property of the estate, then ACE cannot pay the Award unless it is granted relief from the automatic
stay.
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MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1867486.1 3
For these reasons, ACE requests that this Court grant relief from the stay to ACE, pursuant to
11 U.S.C. 362(d), so that ACE can pay the Award.
However, should the Court find that the insurance coverage for payment of the Award is no
longer property of the estate, then, in the alternative, ACE respectfully requests that the Court find
that ACEs payment of Award is not barred by the stay.
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.
ARGUMENT
The Court should grant this motion because 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). Insurance policies are property of the Debtors estate. In re Minoco Group of
Cos., 799 F.2d 517, 519 (9th Cir. 1986). Although the ACE Policy has been cancelled, the payment
of the Award by ACE would confer a benefit upon the estate by paying claims that would otherwise
be entitled to estate assets.
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).
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MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1867486.1 4
Should the coverage for the payment of the Award be property of the estate, there is cause to
grant relief from the stay because without such relief, ACE cannot pay the Award, and the claimants
would be entitled to relief from the Debtors estate.
However, if the coverage for the Claim is not property of the estate because the ACE Policy
was cancelled, then in the alternative, ACE respectfully requests that the Court find that the stay
does not bar ACE from paying the Award.
RESERVATION OF RIGHTS
ACE expressly reserves and does not waive any and all of its rights, defenses, limitations
and/or exclusions under the Policy 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).
Nothing contained in this Memorandum or the Motion shall be construed as an
acknowledgment the Policy, or any other insurance policy issued by ACE to Westcliff covers or
otherwise applied to any claims, losses, or damages on account of any claims or causes of action,
other than the claim that gave rise to the Award, are eligible for payment. ACE reserves all of its
rights to object to any claim for coverage under any of the ACE policies issued to the Debtors and/or
any claims for coverage under any settlement agreements, other than the claim that gave rise to the
Award.
ACE expressly reserves and does not waive any of its rights, defenses, limitations and/or
exclusions under the policies issued by ACE to the Debtor, including but not limited to the Policy,
and the 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
limitations arbitration, United States District Court, or any State Court).
CONCLUSION
WHEREFORE, ACE respectfully requests that this Court enter an Order granting relief from
the automatic stay for the purpose of allowing ACE to satisfy the Award by paying to Wawanesa an
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Memorandum in Support of Motion for Relief from Automatic Stay Page 4 of 5
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MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF ACES MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1867486.1 5
amount of $3,008.03, or, in the alternative, finding that ACEs payment of the Award is not barred
by the automatic stay.


Dated: August 15, 2011 Respectfully submitted,

DUANE MORRIS LLP



By: /s/ Jeff D. Kahane
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.
1515 Market Street, Suite 700
Philadelphia, PA 19102
(215) 568-1155
Case 8:10-bk-16743-TA Doc 525-1 Filed 08/15/11 Entered 08/15/11 14:04:58 Desc
Memorandum in Support of Motion for Relief from Automatic Stay Page 5 of 5
1 JEFF D. KAHANE (SBN 223329)
DUANE MORRIS LLP
2 865 S. Figueroa Street, Suite 3100
Los Angeles, CA 90017-5450
3 Telephone: (213) 689-7400
Facsimile: (213) 689-7401
4 E-mail: jkahane@duanemorris.com
5 Attorneys for A CE American Insurance Company, ACE
Property & Casualty Insurance Company, and the
6 affiliated insurers and reinsurers
7
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10
UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
SANT A ANA DIVISION
11 In re: Case No.: 8:10-bk-16743-TA
12 WESTCLIFF MEDICAL LABORATORIES, Chapter 11
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INC., ,
Debtor.'
I I - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - ~
In re:
BIOLABS, INC.,
Debtor.
(Jointly Administered with
Case No. 8:10-bk-16746)
DECLARATION OF HELEN HEIFETS IN
SUPPORT OF MOTION FOR RELIEF
FROM THE AUTOMATIC STAY FOR THE
PURPOSE OF PAYMENT OF
ARBITRATION AWARD
DECLARATION OF IN SUPPORT OF ACE'S MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\J8677J3.2 1
Case 8:10-bk-16743-TA Doc 525-2 Filed 08/15/11 Entered 08/15/11 14:04:58 Desc
Heifets Declaration Page 1 of 2
1 I, Helen Heifets, declare as follows:
2 1. I am a shareholder at Bazelon Less & Feldman, P.C., a law firm located 1515 Market
3 Street, Suite 700, Philadelphia, PA 19102. I represent ACE American Insurance Company, ACE
4 Property & Casualty Insurance Company, and the affiliated insurers and reinsurers ("ACE"). I have
5 personal knowledge of the facts set forth herein, which were gained through that representation and
6 through my review of ACE's books and records in the course of that representation. If called as a
7 witness, I could and would competently testify to all facts set forth herein.
8
2. ACE provided auto insurance to the Debtors under policy H08049610 (the "Policy")
9 from October 1,2009, until June 17,2010.
10 3. During the period when the Policy was in effect, an accident took place which
11 involved Miguel Reza, then an employee of Westcliff insured under the Policy, and Turville, a third
12 party insured by Wawanesa.
13
4. In connection with the accident, there was an inter-company arbitration between ACE
14 and Wawanesa. The arbitration resulted in an arbitration award in the amount of $3,008.03 in favor
15 of Wawanesa (hereinafter, the "Award"). Attached hereto Exhibit A is true and correct copy of a
,
16 stipulation agreed by ACE, Wawanesa and Turville ("Stipulation"). In the Stipulation, Wawanesa
17 and Turville agreed that upon payment of the Award, they would waive all their claims against the
18 estate.
19 5. On December 10, 2010, ACE filed a Motion for Relief From Automatic Stay for the
20 Purpose of Retroactive Cancellation of Insurance Policies (Docket No. 323). A Stipulation and
21 Order Resolving Relief From Stay was signed by the parties and filed on December 21, 2010
22 (Docket No. 334). On January 3, 2011, the Order Granting Stipulation Resolving Relief From Stay
23 Motion was signed and entered (Docket No. 342).
24 I declare tinder penalty of perjury under the law of the United States of America that the
25 foregoing is true and correct.
26 Dated: Augustff, 2011
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By:
Helen Heifets
DECLARATION OF IN SUPPORT OF ACE'S MOTION FOR RELIEF FROM THE AUTOMATIC STAY
DM3\1867713.2 2
Case 8:10-bk-16743-TA Doc 525-2 Filed 08/15/11 Entered 08/15/11 14:04:58 Desc
Heifets Declaration Page 2 of 2
EXHIBIT A
Case 8:10-bk-16743-TA Doc 525-3 Filed 08/15/11 Entered 08/15/11 14:04:58 Desc
Exhibit A to Heifets Declaration Page 1 of 4
1 Ron Bender (SBN 143364)
Jacqueline L. Rodriguez (SBN 198838)
2 Todd M. Arnold (SBN 2218680
John-Patrick M. Fritz 9SBN 245240)
3 Levene, Neale, Bender, Yoo & Brill L.L.P.
10250 Constellation Boulevard, Suite 1700
4 Los Angeles, California 90067
Telephone (310) 229-1234; Facsimile; (310) 229-1244
5 Email: rb@lnbyb.com;jlr@lnbrb.com;tma@lnbyb.com;
jpf@lnbyb.com
6 Attorneys for Chapter 11 Debtors and Debtors in Possession
7 UNITED STATES BANKRUPTCY COURT
CENTRAL DISTRICT OF CALIFORNIA
8 SANTA ANA DIVISION
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Inre:
WESTCLIFF MEDICAL
LABORATORIES, INC.,
Debtor.
) Lead Case No. 8:10-bk-16743-TA
) (Jointly Administered with
) Case No. 8:10-bk-16746-TA)
)
)
-------------------------)
In re:
BIOLABS, INC.
Debtors.
)
)
)
)
------------)
I&J Affects All Debtors
o Affects Westcliff Medical Laboratories,
Inc. only
)
)
)
)
)
o Affects Biolabs, Inc. only )
1+-----------------------)
Chapter 11
STIPULATION FOR RELIEF FROM THE
AUTOMATIC STAY REGARDING
mSURANCECOVERAGE
Westcliff Medical Laboratories, Inc. ("Westcliff') and Biolabs, Inc. ("Biolabs" and,
together with Westcliff, the "Debtors"), ACE American Insurance Company, ACE Property and
Casualty Insurance Company, andlor possibly other affiliated members of the ACE group of
companies (collectively "ACE"), Wawanesa General Insurance Company ("Wawanesa") and
Charles Turville ("Turville") hereby enter into this stipUlation (the "Stipulation") based on the
following recitals of fact:
RECITALS
A. On May 19, 2010, Westclifffiled a voluntary petition for relief under Chapter 11
1
EXHIBIT, ........... A. ..........
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Exhibit A to Heifets Declaration Page 2 of 4
1 of Title 11, United States Code (the "Bankruptcy Code"). No trustee has been appointed, and
2 Westcliff continues to manage its financial affairs as debtor in possession pursuant to Sections
3 1107 and 1108 of the Bankruptcy Code.
4 B. ACE provided auto insurance to Westcliffunder policy H08049610 (the "Policy")
5 from October 1,2009 until June 17,2010, at 12:01 a.m.
6 C. During the period when the Policy was in effect, an accident (the "Accident")
7 took place which involved Miguel Reza, then an employee of Westcliff insured under the Policy,
8 and Turville, a third party insured by Wawanesa.
9 D. An inter-company arbitration between ACE and Wawanesa resulted in an
10 arbitration award in the amount of $3,008.03 in favor ofWawanesa (hereinafter, the "Award").
11 E. The Policy is the property of the Estate. Therefore, ACE advised Westcliff and
12 Wawanesa that ACE cannot satisfy the Award unless it is granted a relief from automatic stay
13 (the "Stay") under Section 362 of the Bankruptcy Code.
14 F. Payment of the Award by ACE is in the best interests of the Estate since it
15 preserves the assets of the Estate.
16 BASED UPON THE FOREGOING, IT IS HEREBY STIPULATED, CONSENTED
17 AND AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:
18 STIPULATION
19 WHEREFORE, based on the foregoing recitals of fact, the parties hereto hereby
20 stipulate as follows:
21
22
1.
2.
The Stay shall be lifted to allow ACE to satisfy the Award.
Wawanesa and Turville shall be deemed to have waived all claims against the
23 Debtors and any right to receive any distributions or payments from the Debtors or their
24 bankruptcy estates.
25 3. Nothing in this Stipulation shall be construed as an acknowledgment that the
26 Policy, or any other insurance policy issued by ACE to the Debtors, covers or otherwise applies
27 to any claims, losses, or damages on account of any claims or otherwise, other than the claim that
28 gave rise to the Award, of that any such claims or causes of action, other than the claim that gave
2 EXHIBIT A
WG
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Exhibit A to Heifets Declaration Page 3 of 4
1 rise to the Award, are eligible for payment. ACE reserves all of its rights to object to any claim
2 for coverage under any of the ACE policies issued to the Debtors andlor any claims for coverage
3 under any settlement agreements, other than the claim that gave rise to the Award.
4 4.
ACE expressly reserves and does not waive any of its rights, defenses, limitations
5 andlor exclusions under the policies issued by ACE to the Debtor, including but not limited to
6 the Policy, and the applicable law. ACE further reserves all rights to assert any and all such
7 rights, defenses, limitations andlor exclusions in any appropriate manner or forum whatsoever
8 (including without limitation arbitration, United States District Court, or any State Court).
9 5. Nothing in this Stipulation shall be construed as a waiver of any claims the
10 Debtors may have against ACE or any defenses to such claims.
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6. This Stipulation may be executed in counterparts, originals, facsimiles or e-mail,
each of which taken together shall constitute one and the same instrument. .
SO STIPULATED.
Dated: June _, 2011
LEVENE,NEALE,BENDER,YOO
& BRILL L.L.P.
By:, __________________ --____ __
RON BENDER
TODD M. ARNOLD
Attorneys for Chapter 11
Debtors and Debtors in Possession
Dated: June _, 2011
BAZELON LESS & FELDMAN, P.C.
//

HELEN HEIFETS
Attorneys for ACE American Insurance
Company, ACE Property and Casualty
Insurance Company, andlor possibly other
affiliated members of the ACE group of
companies
3
By:
t'WAWANESA 'NSURAN E
'010 FRIARS ROAD
,$AN oaEGO .. CA 92108:) .66

Wawanesa"cr'erieral Insurance Company
Dated: JunepO, 2011

HARLES TURVILLE
EXHIBit A
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Exhibit A to Heifets Declaration Page 4 of 4