SSanFrancis23092714050
What This Document Is
This is Arbitrator Brainerd's Order No. 7, dated September 27, 2023, denying Benworth's September 13, 2023 motion to stay the arbitration pending completion of an SBA investigation into Womply's PPP-era activities — one of three continuance/stay motions Benworth filed during the arbitration.
Factual Summary
Benworth's stay motion attached an email from Eric S. Benderson, an SBA Associate General Counsel for Litigation, concerning the agency's investigation into Womply. Womply opposed on September 14, 2023; Benworth replied September 25, 2023; the arbitrator held a hearing on September 26, 2023. The order denies the motion without prejudice, finding Benderson's email "somewhat vague and general" and insufficient to establish how much the SBA investigation overlapped with or bore on the arbitration's issues, while leaving Benworth free to renew the motion if the SBA later provided clarifying information. The order separately confirms the arbitrator advised the parties that, due to unspecified health issues, he did not anticipate issuing an Interim Award before November 1, 2023 — the Interim Award was in fact issued December 21, 2023, after that projected date.
Key Facts
- Issued September 27, 2023, denying Benworth's second of three stay/continuance motions (the others were filed March 10, 2023 and November 9, 2023, per the Cheney Declaration).
- Finds SBA counsel Eric S. Benderson's email about the SBA's Womply investigation too vague to justify a stay, denying without prejudice.
- Discloses the arbitrator's own health-related delay, projecting no Interim Award before November 1, 2023 (the actual Interim Award issued December 21, 2023).
- Confirms an active SBA investigation into Womply was underway by September 2023, independent of the House Select Subcommittee report.
Source Caveats
- This order denies a stay motion without adjudicating the merits or scope of the underlying SBA investigation; whether or how that investigation concluded is not addressed in this document.
- Date
- 2024-08-20
Full text
EXHIBIT 13 Case 4:24-cv-03975-AMO Document 41-15 Filed 08/20/24 Page 1 of 2 JAMS ARBITRATION CASE REFERENCE NO. 1210038203 Oto Analytics, Inc. dba Womply, Claimant(s), and Benworth Capital Partners, LLC, Respondent(s). ORDER RE BENWORTHS' MOTION TO STAY. ORDER NO. 7 On September 13, 2023, Benworth filed a Motion to Stay these proceedings pending the completion of an investigation being conducted by the SBA into the activities ofWomply during the PPP loan program. The motion attached an email from Eric S. Benderson, an Associate General Counsel for Litigation with the Small Business Administration, concerning the investigation. Womply filed an Opposition to the Motion on September 14, 2023. On September 25, 2023, Benworth filed a Reply to Womply's Opposition. A Hearing was conducted on September 26, 2023, at which the Parties presented oral argument in support of their respective positions. Having fully considered the positions of the Parties, the Motion is DENIED without prejudice. The information contained in Mr. Benderson's email was somewhat vague and general and did not provide sufficient information to determine the extent to which the SBA investigation overlaps or bears upon the issues raised in this Arbitration. Should the SBA provide further information or clarification concerning its investigation that would warrant a renewal of the Motion to Stay, Benworth is free to do so. This Order will also confirm that the Arbitrator advised the Parties that due to some lingering health issues he does not anticipate issuing an Interim Award before November 1, 2023. IT IS SO ORDERED. Dated: September 27, 2023 Alexander L. Brainerd Arbitrator Case 4:24-cv-03975-AMO Document 41-15 Filed 08/20/24 Page 2 of 2
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