In re Raejean S. Bonham dba World Plus
Bankruptcy No. F95-00897
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MOTION FOR APPROVAL OF
PROPOSED STIPULATED SETTLEMENT AGREEMENT

The Trustee and Plaintiff, LARRY D. COMPTON, by and through his attorneys, Guess & Rudd, moves for approval of a proposed Stipulated Settlement Agreement between the trustee and plaintiff and defendants Maria Caporicci and Allen Dale Cartwright.

This motion is supported by a memorandum of even date. The Stipulated Settlement Agreement is filed with this motion.

DATED at Fairbanks, Alaska this ___ day of March, 1997.

GUESS & RUDD
Attorneys for Larry Compton

James D. DeWitt
ABA No. 760523


MEMORANDUM IN SUPPORT OF MOTION FOR APPROVAL OF
PROPOSED STIPULATED SETTLEMENT AGREEMENT

Larry D. Compton has reached a settlement with defendants Allen Dale Cartwright and Maria Caporicci (formerly Maria Cartwright) in this proceeding, and seeks court approval of that settlement.

Settlement Terms.

As set out in the Stipulated Settlement Agreement filed with this memorandum, Allen Dale Cartwright ("Cartwright") is the Lessor under the Lease with Option to Purchase dated May 16, 1989 ("the Lease"). Maria Caporicci ("Caporicci") owns an undivided half interest in the real property that is the subject of the Lease, but did not sign the Lease. By the terms of the proposed settlement, Caporicci will convey her interest to Cartwright by quitclaim deed, and Cartwright will then convey his interest to the Trustee when the Trustee is prepared to sell the property. In return, Caporicci will be paid $1,000 at sale of the property, and Cartwright will be paid $1,000 and his attorneys' fees to a maximum of $1,750. The monies will be paid from the proceeds of sale of the property. Any sale will be required to release Cartwright from liability on the existing, underlying deed of trust note and lien presently held by Alaska USA Federal Credit Union. Sale of the property must occur within two years of final approval of a court order for the sale of the property, or title to the property will revert to Cartwright and Caporicci.

Discussion.

The proposed settlement is in the best interests of the creditors and the estate. The amounts to be paid to Cartwright and Caporicci are less than the costs and attorneys' fees which would be incurred in resolving their claims by litigation. It is not unreasonable for the trustee to pay the reasonable attorneys' fees incurred by Cartwright in obtaining legal advice regarding the settlement.

The settlement, if approved, will on entry of an order for sale of the property, resolve the existing title defects to the property. The settlement will leave as real parties in interest only the Bonhams, the lessees under the Lease.

Conclusion.

The Trustee recommends the settlement to the court and to the creditors, and requests that it be approved.

DATED at Fairbanks, Alaska this ___ day of March, 1997.

GUESS & RUDD
Attorneys for Larry Compton

James D. DeWitt
ABA No. 760523

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