In re Raejean S. Bonham dba World Plus
Bankruptcy No. F95-00897
Unofficial Web Site
The Trustee closed the sale of the Bonham residence, settled all claims with Steve Bonham, and resolved several other issues. The Stipulation; the Application for Approval of Stipulation and the Report of Sale are posted at the Web site.
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In Re: |
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RAEJEAN BONHAM, aka JEAN BONHAM, aka |
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JEANNIE BONHAM dba WORLD PLUS |
) Bankruptcy No. F95-00897-HAR |
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Debtor. |
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_____________________________________ |
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LARRY D. COMPTON, |
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Plaintiff, |
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v. |
) Adv Proc No. 95-00897-185-HAR |
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) Bancap No. 96-4298 |
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RAEJEAN S. BONHAM, STEVE A. |
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BONHAM, ALLEN DALE CARTWRIGHT, |
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MARIA CARTWRIGHT aka MARIA |
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CAPORICCI, and JAMES T. DECKER, SR. |
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Defendants. |
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Larry D. Compton, Chapter 7 Trustee, by and through his attorneys, Guess & Rudd P.C., seeks approval of a stipulation resolving most of the outstanding issues in this adversary case. The Stipulation for Resolution of Claims and Withdrawal of Objections to Sale is attached to and filed with this Motion.
This motion is supported by a memorandum and a motion, memorandum, and affidavit for hearing on shortened time.
DATED at Fairbanks, Alaska this 25th day of June, 1998.
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GUESS & RUDD P.C. /s/James D. DeWitt |
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In Re: |
) |
|
RAEJEAN BONHAM, aka JEAN BONHAM, aka |
) |
|
JEANNIE BONHAM dba WORLD PLUS |
) Bankruptcy No. F95-00897-HAR |
|
Debtor. |
) |
|
_____________________________________ |
) |
|
LARRY D. COMPTON, |
) |
|
Plaintiff, |
) |
|
) |
|
|
v. |
) Adv Proc No. 95-00897-185-HAR |
|
) Bancap No. 96-4298 |
|
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RAEJEAN S. BONHAM, STEVE A. |
) |
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BONHAM, ALLEN DALE CARTWRIGHT, |
) |
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MARIA CARTWRIGHT aka MARIA |
) |
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CAPORICCI, and JAMES T. DECKER, SR. |
) |
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Defendants. |
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The Trustee seeks court approval of a Stipulation resolving most of the outstanding issues in this case. This memorandum addresses two issues: (1) who is entitled to notice of this proposed settlement and (2) should the settlement be approved.
1. Who Is Entitled to Notice?
The Trustee believes that only the parties to this case require notice of this proceeding. While ordinarily notice of a compromise must be given to all of the creditors, Bankruptcy Rule 2002(a)(3), that rule expressly authorizes waiver of notice to all if "the court for cause shown directs notice not be sent." Cause for modifying the notice requirement exists here:
(a) This proceeding could be resolved by the court on the merits under the deferred ruling on summary judgment;(b) The settlement reflects the court’s oral, advisory decisions made over the course of the last three hearings;
(c) In the overall context of this case, the maximum potential effect &emdash; the loss to the estate of a potential claim for about $32,100 &emdash; is not material.
(d) The settlement has the potential for being extremely helpful to the estate, in that it resolves most of the issues in an expensive, protracted and painful case that has involved at least six earlier hearings on shortened time. It is critical that the settlement be implemented at closing, which must occur by June 30. The calendar simply doesn’t permit getting notice to all of the creditors.
The trustee has incorporated in the Order for Hearing on Shortened Time specific findings excusing notice of this settlement to the entire matrix.
2. Merits of Settlement.
All issues involving Steve Bonham and the real property are resolved by this motion. Most issues involving the debtor are resolved:
(a) The Bonhams both withdraw all objections to the sale of the property and consent to the sale.(b) The Bonhams commit to cooperate in the repairs and to voluntarily vacate the premises on June 30, 1998.
(c) Steve A. Bonham agrees to accept $32,100.00 in full payment of all claims on the real property, to be paid at closing in return for the surrender of all of the keys to buildings on the real property.
(d) The Bonhams will leave certain appliances (the refrigerator, the oven, the stove, the range and the microwave) at the property, despite their earlier purchase of those items, reducing the Trustee’s closing costs by an estimated $1,800.00.
(e) The Trustee releases Steve A. Bonham from all claims relating to the real property.
(f) The Trustee agrees that the homestead exemption attaches to the proceeds, making them exempt from levy and execution by the Trustee.
(g) The Trustee waives the right to collection of unpaid fines and sanctions against the Bonhams arising in the course of this adversary action.
The court will recall vividly that these issues have proven to be contentious, difficult and expensive. The settlement here reflects a cost-effective final resolution.
The Trustee might have successfully argued Steve A. Bonham was entitled to less than $32,100, although the court strongly suggested that if the court had to rule today that sum would be the court’s order. But a successful effort would have required extensive additional legal work in an adversary case that already suffers from significant diminishing returns. And while the Trustee gives up a theoretical claim to those monies, the Trustee also has significant net recoveries, beyond the resolution of an old and difficult case. The appliances are recovered, at an estimated savings of $1,800, and the Bonhams agree to voluntarily timely vacate the premises. In fact, at this date they are in the process of packing and moving out.
The Trustee strongly recommends that this settlement be accepted. The Trustee, by separate motion, seeks to have the issue heard on shortened time.
DATED at Fairbanks, Alaska this 25th day of June, 1998.
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GUESS & RUDD P.C. /s/James D. DeWitt |
|
In Re: |
) |
|
RAEJEAN BONHAM, aka JEAN BONHAM, aka |
) |
|
JEANNIE BONHAM dba WORLD PLUS |
) Bankruptcy No. F95-00897-HAR |
|
Debtor. |
) |
|
_____________________________________ |
) |
|
LARRY D. COMPTON, |
) |
|
Plaintiff, |
) |
|
) |
|
|
v. |
) Adv Proc No. 95-00897-185-HAR |
|
) Bancap No. 96-4298 |
|
|
RAEJEAN S. BONHAM, STEVE A. |
) |
|
BONHAM, ALLEN DALE CARTWRIGHT, |
) |
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MARIA CARTWRIGHT aka MARIA |
) |
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CAPORICCI, and JAMES T. DECKER, SR. |
) |
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Defendants. |
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RE: RESOLUTION OF CLAIMS AND WITHDRAWAL OF
OBJECTIONS TO SALE
STATE OF ALASKA
FOURTH JUDICIAL DISTRICT
JAMES D. DeWITT, being first duly sworn, states that:
1. I am attorney for the Larry D. Compton, the duly authorized and acting Chapter 7 Trustee in this matter. Nothing contained in this Affidavit is an express or implied waiver of the attorney-client privilege.
2. As described in the Memorandum in Support of the underlying motion, the Trustee has reached a stipulated settlement with the debtor and Steven A. Bonham.
3. By the terms of the stipulated settlement, Steven A. Bonham is to receive proceeds from the sale of the real property at issue in this case at closing. The closing is scheduled for June 30, 1998, in return for the conveyance of certain appliances, the release of all claims of those persons against the real property at issue in this case. More specifically:
(a) The Bonhams both withdraw all objections to the sale of the property and consent to the sale.(b) The Bonhams commit to cooperate in the repairs and to voluntarily vacate the premises on June 30, 1998.
(c) Steve A. Bonham agrees to accept $32,100.00 in full payment of all claims on the real property, to be paid at closing in return for the surrender of all of the keys to buildings on the real property.
(d) The Bonhams will leave certain appliances (the refrigerator, the oven, the stove, the range and the microwave) at the property, despite their earlier purchase of those items, reducing the Trustee’s closing costs by an estimated $1,800.00.
(e) The Trustee releases Steve A. Bonham from all claims relating to the real property.
(f) The Trustee agrees that the homestead exemption attaches to the proceeds, making them exempt from levy and execution by the Trustee.
(g) The Trustee waives the right to collection of unpaid fines and sanctions against the Bonhams arising in the course of this adversary action.
4. The settlement is mutually beneficial, and was the subject of extensive negotiations. It is intended to be implemented at and is important to the closing scheduled for June 30, 1998. It was signed by the debtor and Steve A. Bonham on June 23, 1998, acknowledged by them on June 24, 1998, and delivered to this office at about 10:30 AM on June 24, 1998.
5. The Trustee urges the court hear issues involving the settlement of this case on shortened time.
DATED at Fairbanks, Alaska this 25th day of June, 1998.
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/s/James D. DeWitt |
|
In Re: |
) |
|
RAEJEAN BONHAM, aka JEAN BONHAM, aka |
) |
|
JEANNIE BONHAM dba WORLD PLUS |
) Bankruptcy No. F95-00897-HAR |
|
Debtor. |
) |
|
_____________________________________ |
) |
|
LARRY D. COMPTON, |
) |
|
Plaintiff, |
) |
|
) |
|
|
v. |
) Adv Proc No. 95-00897-185-HAR |
|
) Bancap No. 96-4298 |
|
|
RAEJEAN S. BONHAM, STEVE A. |
) |
|
BONHAM, ALLEN DALE CARTWRIGHT, |
) |
|
MARIA CARTWRIGHT aka MARIA |
) |
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CAPORICCI, and JAMES T. DECKER, SR. |
) |
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Defendants. |
) |
RE: MOTION FOR APPROVAL OF STIPULATION FOR RESOLUTION OF CLAIMS AND WITHDRAWAL OF OBJECTIONS TO SALE AND SERVICE ON LIMITED PARTIES
Larry D. Compton, the Chapter 7 Trustee, under authority of Bankruptcy Rule 9006(c) and Local Bankruptcy Rule 9013-2(a), moves for a hearing on shortened time on his MOTION FOR APPROVAL OF STIPULATION FOR RESOLUTION OF CLAIMS AND WITHDRAWAL OF OBJECTIONS TO SALE.
As is described in the Affidavit of James D. DeWitt, the Stipulation resolves all outstanding issue between Steve A. Bonham and the Trustee, and most of the remaining issues in the case. The Stipulation contemplates:
The court is aware of the protracted, painful and expensive efforts to resolve this matter; the Trustee believes that is in the interest of everyone, including the creditors and the estate, to get the stipulation approved as quickly as possible.
The Trustee does not believe that there are extensive notice requirements required here beyond those persons who are parties to the case. The settlement mirrors in large measure the statements of the court on the record through the last three hearings, an order this court could have entered on pleadings already filed, in a case that has been pending for more than two years. The release of Steve Bonham under this Stipulation extends only to real property issues. There is a settlement agreement as to global issues with Steve Bonham, but it will be noticed out to all creditors prior to any hearing on approval.
The motion for hearing on shortened time should be granted.
DATED at Fairbanks, Alaska this 25th day of June, 1998.
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GUESS & RUDD P.C. /s/James D. DeWitt |
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