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UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN SOUTHER DIVISION DETROIT In re Collins & Aikman Corporation, et al.

. , Debtors. __________________________________/ COMMENTS TO PROPOSED ORDER REGARDING MEDIATION Jaffe, Raitt, Heuer & Weiss P.C. (Jaffe) currently represents numerous defendants in the adversary proceedings filed by the Debtors. provisions on the Proposed Mediation Order: 1. Paragraphs 3 & 4: Paragraphs 3 and 4 provide that mediation will be conducted Clarification is needed of the following Chapter 11 Case No. 05-55927 (SWR) (Jointly Administered) Honorable Steven Rhodes

prior to the discovery deadline, unless both parties request otherwise. Instead, it should provide that mediation should not proceed until after the applicable discovery deadline, unless the parties agree to mediate prior to such date. For mediation to be effective, the parties should have access to the factual evidence in the case. 2. Paragraph 8: Location and Scheduling of the Mediation. Paragraph 8 of the

Proposed Order states that the Court expects that the mediations will be conducted in various cities in an attempt to accommodate the convenience of the parties while also attempting to minimize the expenses of mediation for the parties. Clarification is needed as to whether the Court intends for mediations to be conducted within or near the jurisdiction of the Defendants rather than in the Eastern District of Michigan, where the case is pending. If a venue other than the Eastern District of Michigan is to control, then the Proposed Order should indicate the circumstances in which the mediation would be heard in such differing jurisdiction.

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Paragraphs 10 and 14: Confidentiality. Paragraph 10 states that all proceedings Paragraph 14

and writings incident to the mediation shall be privileged and confidential.

prevents the disclosure of offers, promises, conduct and statements to third parties except persons associated with the participants in the process. Clarification is needed as to the meaning of persons associated with the participants in the process, in particular whether the language would prevent discussions among defendants, including pursuant to joint defense agreements. The language as written appears to permit plaintiffs and their counsel and other professionals to discuss strategy, evidence and information among themselves, but prohibit defendants and their respective counsel and other professionals from undertaking the same sharing of strategy, evidence and information. 4. Paragraph 15: Default. The Proposed Order indicates that a party that has failed

to mediate may have default entered against such party. Any such default should be entered only after notice and opportunity for hearing regarding the proposed entry of default. Respectfully submitted; Jaffe, Raitt, Heuer & Weiss P.C. By: /s/ Paige E. Barr Paige E. Barr (Ill. Bar No. 6282474) 27777 Franklin Road, Suite 2500 Southfield, MI 48034 (248) 351-3000 pbarr@jaffelaw.com Dated: October 15, 2007

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