Rosenthal second-removal remand and fee entitlement opinion — 14 May 2025 — Harris County copy 93
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observationobservation
14 May 2025 ruling; 19 May cost submission and 26 May objection dates are historical source directives, not live deadlines.
Read the anchor · page 1
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
This complete eight-page SDTX ECF 14 opinion in 4:25-cv-01689 is signed and filed by Judge Lee H. Rosenthal on 14 May 2025. The retained Har
This complete eight-page SDTX ECF 14 opinion in 4:25-cv-01689 is signed and filed by Judge Lee H. Rosenthal on 14 May 2025. The retained Harris County copy bears an Unofficial Copy watermark. It remands the second removal to the 129th Judicial District and grants fee/cost entitlement for responding to that removal; no quantified award is fixed here.
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IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
The opinion recounts a June 2023 Virginia judgment, July 2024 Texas enforcement, first removal and prior remand. It finds Cyberlux knew the
The opinion recounts a June 2023 Virginia judgment, July 2024 Texas enforcement, first removal and prior remand. It finds Cyberlux knew the alleged federal-property issue no later than 6 January 2025 and failed to remove within the relevant thirty-day period. These are this opinion’s historical procedural findings, not a current deadline calculation.
Read the anchor · page 1
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
The court says the state court did not authorise seizing federal property to satisfy Cyberlux’s judgment and notes Berleth’s and creditor co
The court says the state court did not authorise seizing federal property to satisfy Cyberlux’s judgment and notes Berleth’s and creditor counsel’s representations that they did not intend to seize/sell Government property. Those representations and the then-record underpin remand; they are not proof of all subsequent conduct.
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3
II. Analysis
Atlantic Wave’s original petition, filed in July 2024, made clear that Atlantic Wave sought
to collect money from Cyberlux or levy and sell Cyberlux’s property located in a Texas Cyberlux
facility towards satisfying the Virginia state-court judgment. (Case No. 25-cv-626, Docket Entry
No. 3-3).2
Cyberlux’s motion to quash filed on January 6, 2025, shows that Cyberlux knew at that
time that there was U.S. government property in its Texas facility. See (Case No. 25-cv-626,
Docket Entry No. 4-1 at 14). Cyberlux has used the presence of some government property to
attempt to delay and frustrate Atlantic Wave’s right to collect on its judgment. Cyberlux was
aware of the alleged federal issues raised by the presence of some federal government property in
Cyberlux’s facility by January 6, 2025, at the latest.3
Cyberlux did not remove for more than 30
days after January 6, 2025. See (Case No. 25-cv-626, Docket Entry Nos. 1, 3). That removal was
clearly untimely. See (Docket Entry No. 1-1 at 24).
On January 16, 2025, the Texas state court stated that it was going to appoint a receiver for
Cyberlux’s property and instructed Atlantic Wave to file a proposed order. (Case No. 25-cv-626,
Docket Entry No. 4-1 at 141, 152). The court did not authorize the receiver to attempt to collect
Cyberlux’s judgment debt to Atlantic Wave by seizing any of the federal government property in
the Cyberlux facility. Nor did Atlantic Wave or the receiver seek to seize federal government
property to satisfy Cyberlux’s judgment debt. As this court previously held, neither the proposed
receivership order filed by Atlantic Wave on January 20, 2025, nor the letter to the state-court
judge from the receiver, Robert Berleth, dated February 3, 2025, provided any basis, new or
2
As Cyberlux states: “On July 30, 2024, [Atlantic Wave] filed a Petition to Enforce in Texas state court,
seeking to levy and sell various Cyberlux property, including Cyberlux’s property in a Spring, Texas
facility . . . leased by Cyberlux.” (Case No. 25-cv-626, Docket Entry No. 5 at 7).
3
Atlantic Wave requested an inspection of Cyberlux’s Texas facility on January 9, 2025, (Docket Entry
No. 3-1 at 5–7), which was also more than 30 days before Cyberlux filed its first notice of removal.
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 3 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
The court rejects the April 1 proposed receivership order and April letters as new removal-triggering papers. It reads “Debtor’s non-exempt
The court rejects the April 1 proposed receivership order and April letters as new removal-triggering papers. It reads “Debtor’s non-exempt property” as the asset boundary and the disputed-custody/compliance provisions as allowing state-court recourse, not authority to sell Government property. Cyberlux removed before that proposed order was issued.
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4
otherwise, for federal jurisdiction or removal. See (Case No. 25-cv-626, Docket Entry Nos. 16,
18). That conclusion was bolstered by Mr. Berleth’s representations to the state court that he had
“no intention” of selling government property or infringing on government property interests if
appointed receiver. (Case No. 25-cv-626, Docket Entry No. 4-1 at 148, 150). Atlantic Wave’s
counsel similarly represented to this court that it had “no interest in selling assets that belong to
the federal government.” (Docket Entry No. 1-1 at 15). This court issued these findings before
remanding. (Case No. 25-cv-626, Docket Entry Nos. 16, 18).
Two weeks later, Cyberlux removed yet again. (Docket Entry No. 1). Cyberlux justified
this removal on Atlantic Wave’s filing of a new proposed receivership order in the Texas state
court on April 1, 2025. See (Docket Entry No. 1-7).4
Cyberlux characterizes the proposed order
as “excessively broad,” “extreme and improper,” and “unconscionable.” (Docket Entry No. 1 at
7–9). It is clearly none of those things. More importantly, it is not an “other paper from which it
may first be ascertained that the case is one which is or has become removable.” See 28 U.S.C.
§ 1446(b)(3).
The proposed order does not mention U.S. government property, much less give the stateappointed receiver power to seize and sell U.S. government property. To the contrary, the
proposed order defines the “Receivership assets” as “Debtor’s non-exempt property.” (Docket
Entry No. 1-7 at ¶ 14) (emphasis added); see also (id. at ¶ 25) (granting the receiver the power to
“take possession of Debtor’s non-exempt property” (emphasis added)).
Cyberlux objects to three paragraphs of the proposed order. (Docket Entry No. 9 at 7–8)
(citing Docket Entry No. 1-7 at ¶¶ 21(h), 28, 31). But these paragraphs simply give Cyberlux
4
Cyberlux removed before the Texas state court issued an order on the receivership.
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 4 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
The opinion finds no evidence on that record of a receiver attempt to seize/sell Government property or of the asserted crossed boundary. It
The opinion finds no evidence on that record of a receiver attempt to seize/sell Government property or of the asserted crossed boundary. It distinguishes a prior hearing’s hypothetical possible removal trigger from the actual facts and notes federal-officer removal might still not apply. This is not a prospective licence or a later title adjudication.
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5
recourse through the state courts if the receiver were to violate the order (which he disavowed any
intent to do) by seizing U.S. government property. See (Docket Entry No. 1-7 at ¶ 21(h)) (If
Cyberlux “believes that the Receiver’s demands are inappropriate,” it “must first comply, then
seek protection from the Court” and “must set the matter for the earliest possible hearing date.”
(emphasis added)); (id. at ¶ 28) (In disputes about “whether an asset . . . belongs to a Debtor,” the
Receiver “may take custody of the asset until the Court determines the rights of those claiming an
interest in the asset”); (id. at ¶ 31) (same). Again, both Mr. Berleth and Atlantic Wave have
repeatedly represented to this court and the state court that they do not intend to seize or sell U.S.
Government property. See, e.g., (Case No. 25-cv-626, Docket Entry No. 4-1 at 148, 150); (Docket
Entry No. 1-1 at 15); (Docket Entry No. 1-6 at 2).
There is no basis for Cyberlux’s statement that the order, “if signed by the state court judge,
would have given the receiver authority to take the Federal Government Property and sell it.”
(Docket Entry No. 9 at 15). Rather, the proposed order reiterates what has been clear since the
original petition was filed: the state court will be the ultimate determiner of which of Cyberlux’s
assets can lawfully be seized to satisfy the Virginia state-court judgment. The proposed order does
not provide a newly discovered basis for removal.
Contrary to Cyberlux’s representation, there is also no evidence that the plaintiffs “have
trampled over the line they repeatedly represented to [this court] they would not tread.” See
(Docket Entry No. 1 at 2). In a cover letter to the proposed order filed in the state court, Atlantic
Wave’s attorney expressly reiterated: “To be clear, the focus of Plaintiffs’ collection efforts is not
to seize personal property on which the United States has or claims a mortgage or other lien as
established by competent evidence, but rather to seize personal property of Judgment-Debtors as
set forth in the proposed receivership order.” (Docket Entry No. 1-6 at 2). As detailed above, the
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 5 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
Fees were denied for the first removal because it had at least a colourable basis; the second lacked an objectively reasonable basis and fee
Fees were denied for the first removal because it had at least a colourable basis; the second lacked an objectively reasonable basis and fee entitlement is granted. The opinion requires proof of actual removal-related costs and permits good-faith objections. It does not fix a monetary award.
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6
proposed order does not state, or even suggest, that Atlantic Wave or Mr. Berleth intend to seize
U.S. government property. And Atlantic Wave’s letter to the court on April 9, 2025, does not
provide a new or different perspective. Atlantic Wave’s actions since this case was removed,
remanded, and removed again are consistent with its representations to this court and to the state
court.
In short, Cyberlux’s second notice of removal is based on an unjustified reading of two
letters and a proposed receivership order filed by Atlantic Wave. None of these documents present
a new or valid basis for removal. There is still no reason to think that U.S. government property
will be seized and sold as a part of the state-court case. But even if there were, Cyberlux knew on
January 6, 2025, that its Texas facility contained government property. To the extent that this
raises a federal question, the notice of removal must have been filed within 30 days of January 6,
2025, at the latest, to be timely. See 28 U.S.C. § 1446. It was not. All of this was true when this
court previously remanded this case, and it remains true today.
This case is remanded, again, to the 129th Judicial District Court of Harris County, Texas.
III. Attorney’s Fees and Costs
Atlantic Wave requests “the opportunity to submit a separate motion seeking an award of
reasonable attorneys’ fees” incurred as a result of Cyberlux’s multiple removals. (Docket Entry
No. 3 at 29). Under 28 U.S.C. § 1447(c), “[a]n order remanding the case may require payment of
just costs and any actual expenses, including attorney fees, incurred as a result of the removal.”
“Absent unusual circumstances, courts may award attorney’s fees under § 1447(c) only where the
removing party lacked an objectively reasonable basis for seeking removal.” Martin v. Franklin
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 6 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
Atlantic Wave must submit cost/fee documents by 19 May 2025 and Cyberlux may object by 26 May 2025. These are source-stated historical deadl
Atlantic Wave must submit cost/fee documents by 19 May 2025 and Cyberlux may object by 26 May 2025. These are source-stated historical deadlines; compliance, amount awarded, later review and subsequent receivership acts are not supplied.
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8
IV. Conclusion
Because Cyberlux did not timely remove, Atlantic Wave’s motion to remand, (Docket
Entry No. 3), is granted. Atlantic Wave’s request for an award of the attorney’s fees and costs
incurred in responding to the second removal is granted. Atlantic Wave must submit documents
showing its costs and expenses, including attorney fees, by May 19, 2025. Cyberlux may file
objections, if any, by May 26, 2025.
SIGNED on May 14, 2025, at Houston, Texas.
________________________________
Lee H. Rosenthal
Senior United States District Judge
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 8 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
claimallegation
The opinion sets out its then-applied federal-question/federal-officer removal and thirty-day/other-paper standards. Their inclusion is sour
The opinion sets out its then-applied federal-question/federal-officer removal and thirty-day/other-paper standards. Their inclusion is source analysis for this ruling, not independent advice on present rules or another jurisdiction.
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2
Texas. Atlantic Wave’s request for attorney’s fees is granted. The reasons for these rulings are
below.
I. The Legal Standard
Under 28 U.S.C. § 1441, a defendant may remove a “civil action brought in a State court
of which the district courts of the United States have original jurisdiction.” This includes “civil
actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331.
Federal statute also allows for removal of a civil action commenced in state court involving
“[a] property holder whose title is derived from” an officer of the United States, “where such
action . . . affects the validity of any law of the United States.” 28 U.S.C. § 1442(a)(2). The
federal-officer removal statute “applies to private persons ‘who lawfully assist’ the federal officer
‘in the performance of his official duty.’” Watson v. Philip Morris Companies, Inc., 551 U.S. 142,
151 (2007) (quoting Davis v. South Carolina, 107 U.S. 597, 600 (1883)).
Regardless of the statutory basis for removal, a defendant must follow the removal
procedures in 28 U.S.C. § 1446. Generally, a notice of removal must be filed within 30 days after
the defendant receives a copy of the initial pleading or service of summons. 28 U.S.C.
§ 1446(b)(1). However,
if the case stated by the initial pleading is not removable, a notice of removal may
be filed within 30 days after receipt by the defendant, through service or otherwise,
of a copy of an amended pleading, motion, order or other paper from which it may
first be ascertained that the case is one which is or has become removable.
Id. § 1446(b)(3). The “other paper,” see id., “must result from the voluntary act of a plaintiff.”
Par. of Plaquemines v. Chevron USA, Inc., 7 F.4th 362, 373 (5th Cir. 2021) (quoting reference
omitted).
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 2 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
entityobservation
Atlantic Wave Holdings LLC
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IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
entityobservation
Secure Community LLC
Read the anchor · page 1
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
entityobservation
Cyberlux Corporation
Read the anchor · page 1
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
entityobservation
Mark D. Schmidt
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IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
entityobservation
Lee H. Rosenthal
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8
IV. Conclusion
Because Cyberlux did not timely remove, Atlantic Wave’s motion to remand, (Docket
Entry No. 3), is granted. Atlantic Wave’s request for an award of the attorney’s fees and costs
incurred in responding to the second removal is granted. Atlantic Wave must submit documents
showing its costs and expenses, including attorney fees, by May 19, 2025. Cyberlux may file
objections, if any, by May 26, 2025.
SIGNED on May 14, 2025, at Houston, Texas.
________________________________
Lee H. Rosenthal
Senior United States District Judge
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UnofficialCopyOfficeofMarilynBurgessDistrictClerk
entityobservation
Robert Berleth
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3
II. Analysis
Atlantic Wave’s original petition, filed in July 2024, made clear that Atlantic Wave sought
to collect money from Cyberlux or levy and sell Cyberlux’s property located in a Texas Cyberlux
facility towards satisfying the Virginia state-court judgment. (Case No. 25-cv-626, Docket Entry
No. 3-3).2
Cyberlux’s motion to quash filed on January 6, 2025, shows that Cyberlux knew at that
time that there was U.S. government property in its Texas facility. See (Case No. 25-cv-626,
Docket Entry No. 4-1 at 14). Cyberlux has used the presence of some government property to
attempt to delay and frustrate Atlantic Wave’s right to collect on its judgment. Cyberlux was
aware of the alleged federal issues raised by the presence of some federal government property in
Cyberlux’s facility by January 6, 2025, at the latest.3
Cyberlux did not remove for more than 30
days after January 6, 2025. See (Case No. 25-cv-626, Docket Entry Nos. 1, 3). That removal was
clearly untimely. See (Docket Entry No. 1-1 at 24).
On January 16, 2025, the Texas state court stated that it was going to appoint a receiver for
Cyberlux’s property and instructed Atlantic Wave to file a proposed order. (Case No. 25-cv-626,
Docket Entry No. 4-1 at 141, 152). The court did not authorize the receiver to attempt to collect
Cyberlux’s judgment debt to Atlantic Wave by seizing any of the federal government property in
the Cyberlux facility. Nor did Atlantic Wave or the receiver seek to seize federal government
property to satisfy Cyberlux’s judgment debt. As this court previously held, neither the proposed
receivership order filed by Atlantic Wave on January 20, 2025, nor the letter to the state-court
judge from the receiver, Robert Berleth, dated February 3, 2025, provided any basis, new or
2
As Cyberlux states: “On July 30, 2024, [Atlantic Wave] filed a Petition to Enforce in Texas state court,
seeking to levy and sell various Cyberlux property, including Cyberlux’s property in a Spring, Texas
facility . . . leased by Cyberlux.” (Case No. 25-cv-626, Docket Entry No. 5 at 7).
3
Atlantic Wave requested an inspection of Cyberlux’s Texas facility on January 9, 2025, (Docket Entry
No. 3-1 at 5–7), which was also more than 30 days before Cyberlux filed its first notice of removal.
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 3 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
eventattribution
Rosenthal signed and filed this remand/fee-entitlement opinion.
Read the anchor · page 1
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
inferenceinference
Remand and fee entitlement cannot be converted into approval of every receiver act. The opinion expressly relies on the debtor-property boun
Remand and fee entitlement cannot be converted into approval of every receiver act. The opinion expressly relies on the debtor-property boundary, representations and lack of contrary evidence in its historical record.
inferenceinference
Entitlement to second-removal costs is adjudicated here, but a recoverable dollar award is not: submissions, objections and later dispositio
Entitlement to second-removal costs is adjudicated here, but a recoverable dollar award is not: submissions, objections and later disposition remain necessary.
otherattribution
Complete supplied 8-page source reviewed at SHA-256 8392ccaea99d1ff84b9544a2401ed49614a4a6f52f8ffcf60b37d9db5682816c. Source assertions, ori
Complete supplied 8-page source reviewed at SHA-256 8392ccaea99d1ff84b9544a2401ed49614a4a6f52f8ffcf60b37d9db5682816c. Source assertions, original visual features, filing/communication context and identified missing attachments are retained. No unexamined later court outcome is inferred.
Read the anchor · page 1
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
ATLANTIC WAVE HOLDINGS, LLC, et
al.,
Plaintiffs,
v.
CYBERLUX CORPORATION, et al.,
Defendants.
§
§
§
§
§
§
§
§
§
§
CIVIL ACTION NO. 25-1689
MEMORANDUM AND OPINION
This dispute has a long and winding history across multiple state and federal courts. The
plaintiffs, Atlantic Wave Holdings LLC and Secure Community LLC, obtained a judgment in June
2023 in a Virginia state court against the defendants, Cyberlux Corporation and Mark D. Schmidt.1
Since then, Atlantic Wave has been trying to enforce that judgment. Atlantic Wave sued Cyberlux
in July 2024 in the 129th Judicial District Court of Harris County, Texas, trying to collect on the
judgment. Cyberlux has resisted. Three months ago, Cyberlux removed the case to federal court.
This court remanded because, among other problems, the removal was untimely. (Case No. 25-
cv-626, Docket Entry Nos. 15, 16, 18).
Approximately two weeks after this court’s remand order, Cyberlux removed again, and
Atlantic Wave moved to remand. (Docket Entry No. 3). Based on the briefing, record, and
applicable law, this case is again remanded to the 129th Judicial District Court of Harris County,
1
The plaintiffs are referred to collectively as “Atlantic Wave.” The defendants are referred to collectively
as “Cyberlux.”
United States District Court
Southern District of Texas
ENTERED
May 14, 2025
Nathan Ochsner, Clerk
Case 4:25-cv-01689 Document 14 Filed on 05/14/25 in TXSD Page 1 of 8
UnofficialCopyOfficeofMarilynBurgessDistrictClerk
questionquestion
What later fee submissions, objections and quantified order implement this fee-entitlement ruling?
questionquestion
Did later actual custody, disposition or receiver conduct differ from the representations and record on which this remand rested?
distillateobservation
CONNECT
Reviewed relationships
The canvas follows the database: source to DISTIL record, DISTIL record to knowledge object, then reviewed relationship. Position alone means nothing.
This complete eight-page SDTX ECF 14 opinion in 4:25-cv-01689 is signed and filed by Judge Lee H. Rosenthal on 14 May 2025. The retained Harris County copy bears an Unofficial Copy watermark. It remands the second removal to the 129th Judicial District and grants fee/cost entitlement for responding to that removal; no quantified award is fixed here.referencesThis complete eight-page SDTX ECF 14 opinion in 4:25-cv-01689 is signed and filed by Judge Lee H. Rosenthal on 14 May 2025. The retained Harris County copy bears an Unofficial Copy watermark. It remands the second removal to the 129th Judicial District and grants fee/cost entitlement for responding to that removal; no quantified award is fixed here.
Same complete eight-page opinion in different file hashes, not separate judgments.
The opinion finds no evidence on that record of a receiver attempt to seize/sell Government property or of the asserted crossed boundary. It distinguishes a prior hearing’s hypothetical possible removal trigger from the actual facts and notes federal-officer removal might still not apply. This is not a prospective licence or a later title adjudication.supportsRemand and fee entitlement cannot be converted into approval of every receiver act. The opinion expressly relies on the debtor-property boundary, representations and lack of contrary evidence in its historical record.
Specifically named source propositions support the bounded distinction or question.
The court rejects the April 1 proposed receivership order and April letters as new removal-triggering papers. It reads “Debtor’s non-exempt property” as the asset boundary and the disputed-custody/compliance provisions as allowing state-court recourse, not authority to sell Government property. Cyberlux removed before that proposed order was issued.supportsRemand and fee entitlement cannot be converted into approval of every receiver act. The opinion expressly relies on the debtor-property boundary, representations and lack of contrary evidence in its historical record.
Specifically named source propositions support the bounded distinction or question.
Atlantic Wave must submit cost/fee documents by 19 May 2025 and Cyberlux may object by 26 May 2025. These are source-stated historical deadlines; compliance, amount awarded, later review and subsequent receivership acts are not supplied.supportsWhat later fee submissions, objections and quantified order implement this fee-entitlement ruling?
Specifically named source propositions support the bounded distinction or question.
The opinion finds no evidence on that record of a receiver attempt to seize/sell Government property or of the asserted crossed boundary. It distinguishes a prior hearing’s hypothetical possible removal trigger from the actual facts and notes federal-officer removal might still not apply. This is not a prospective licence or a later title adjudication.supportsDid this opinion authorise seizure or sale of Government property?
Specifically named source propositions support the bounded distinction or question.
The court says the state court did not authorise seizing federal property to satisfy Cyberlux’s judgment and notes Berleth’s and creditor counsel’s representations that they did not intend to seize/sell Government property. Those representations and the then-record underpin remand; they are not proof of all subsequent conduct.supportsDid later actual custody, disposition or receiver conduct differ from the representations and record on which this remand rested?
Specifically named source propositions support the bounded distinction or question.
Atlantic Wave must submit cost/fee documents by 19 May 2025 and Cyberlux may object by 26 May 2025. These are source-stated historical deadlines; compliance, amount awarded, later review and subsequent receivership acts are not supplied.supportsEntitlement to second-removal costs is adjudicated here, but a recoverable dollar award is not: submissions, objections and later disposition remain necessary.
Specifically named source propositions support the bounded distinction or question.
The opinion finds no evidence on that record of a receiver attempt to seize/sell Government property or of the asserted crossed boundary. It distinguishes a prior hearing’s hypothetical possible removal trigger from the actual facts and notes federal-officer removal might still not apply. This is not a prospective licence or a later title adjudication.supportsDid later actual custody, disposition or receiver conduct differ from the representations and record on which this remand rested?
Specifically named source propositions support the bounded distinction or question.
The court rejects the April 1 proposed receivership order and April letters as new removal-triggering papers. It reads “Debtor’s non-exempt property” as the asset boundary and the disputed-custody/compliance provisions as allowing state-court recourse, not authority to sell Government property. Cyberlux removed before that proposed order was issued.supportsDid this opinion authorise seizure or sale of Government property?
Specifically named source propositions support the bounded distinction or question.
Fees were denied for the first removal because it had at least a colourable basis; the second lacked an objectively reasonable basis and fee entitlement is granted. The opinion requires proof of actual removal-related costs and permits good-faith objections. It does not fix a monetary award.supportsRemand and fee entitlement cannot be converted into approval of every receiver act. The opinion expressly relies on the debtor-property boundary, representations and lack of contrary evidence in its historical record.
Specifically named source propositions support the bounded distinction or question.
The court says the state court did not authorise seizing federal property to satisfy Cyberlux’s judgment and notes Berleth’s and creditor counsel’s representations that they did not intend to seize/sell Government property. Those representations and the then-record underpin remand; they are not proof of all subsequent conduct.supportsDid this opinion authorise seizure or sale of Government property?
Specifically named source propositions support the bounded distinction or question.
The court says the state court did not authorise seizing federal property to satisfy Cyberlux’s judgment and notes Berleth’s and creditor counsel’s representations that they did not intend to seize/sell Government property. Those representations and the then-record underpin remand; they are not proof of all subsequent conduct.supportsRemand and fee entitlement cannot be converted into approval of every receiver act. The opinion expressly relies on the debtor-property boundary, representations and lack of contrary evidence in its historical record.
Specifically named source propositions support the bounded distinction or question.
Fees were denied for the first removal because it had at least a colourable basis; the second lacked an objectively reasonable basis and fee entitlement is granted. The opinion requires proof of actual removal-related costs and permits good-faith objections. It does not fix a monetary award.supportsWhat later fee submissions, objections and quantified order implement this fee-entitlement ruling?
Specifically named source propositions support the bounded distinction or question.
The court rejects the April 1 proposed receivership order and April letters as new removal-triggering papers. It reads “Debtor’s non-exempt property” as the asset boundary and the disputed-custody/compliance provisions as allowing state-court recourse, not authority to sell Government property. Cyberlux removed before that proposed order was issued.supportsDid later actual custody, disposition or receiver conduct differ from the representations and record on which this remand rested?
Specifically named source propositions support the bounded distinction or question.
Fees were denied for the first removal because it had at least a colourable basis; the second lacked an objectively reasonable basis and fee entitlement is granted. The opinion requires proof of actual removal-related costs and permits good-faith objections. It does not fix a monetary award.supportsEntitlement to second-removal costs is adjudicated here, but a recoverable dollar award is not: submissions, objections and later disposition remain necessary.
Specifically named source propositions support the bounded distinction or question.
WEIGH
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