In Re: CWS Enterprises, Inc.

Filing 52

STIPULATION and ORDER signed by District Judge Kimberly J. Mueller on 11/09/17 ORDERING that the Blocked Account Order is AMENDED to allow disbursement by Hank M. Spacone, Plan Administrator, on behalf of CWS of the $3 million being held in the Blocked Account, plus interest if any, into the Escrow Account to facilitate payment of amounts due to Spiller McProud. Hank M. Spacone, Plan Administrator, shall thereafter close the Blocked Account. (Benson, A.)

Download PDF
1 2 3 BENBROOK LAW GROUP BRADLEY A. BENBROOK (SBN 177786) 400 Capitol Mall, Suite 2530 Sacramento, CA 95814 Telephone: (916) 447-4900 Facsimile: (916) 447-4904 4 5 6 7 8 9 DLA PIPER LLP (US) DAVID A. CHEIT (SBN 121379) 400 Capitol Mall, Suite 2400 Sacramento, CA 95814 Telephone: (916) 930-3200 Facsimile: (916) 930-3201 Special Counsel for Appellee and Cross-Appellant David Flemmer, Chapter 11 Trustee 10 UNITED STATES DISTRICT COURT 11 EASTERN DISTRICT OF CALIFORNIA 12 13 In Re CWS Enterprises, Inc., a California Corporation, 14 Case No.: CIV S-12-0142 KJM Bankr. Court Case No. 09-26849-C-11 15 Debtor, ______________________________________ 16 Spiller McProud, 17 Adv. Proc. Case No. 10-02226-C STIPULATION AND ORDER FOR DISBURSEMENT FROM AND CLOSING OF BLOCKED ACCOUNT Appellant, v. 18 19 CWS Enterprises, Inc., a California Corporation, David D. Flemmer, Chapter 11 Trustee, and Charles W. Siller, 20 21 Appellees. ______________________________________ 22 And consolidated appeals and cross-appeals 23 Hank M. Spacone, Plan Administrator (“Spacone”) as successor to David D. Flemmer 24 25 (“Flemmer”), and Spiller McProud, Attorneys at Law (“Spiller McProud”), by and between 26 their respective attorneys, stipulate and agree as follows: 27 /// 28 1727314.2 STIPULATION AND ORDER FOR PAYMENT FROM BLOCKED ACCOUNT Case No. CIV S-12-0142 KJM 1 RECITALS 2 1. This Court entered an order on September 17, 2014, and a judgment on September 3 30, 2014 (the “Order and Judgment”), in the above-referenced appeal from the bankruptcy court 4 (the “Bankruptcy Case”). Flemmer, as Chapter 11 Trustee initially and subsequently as Plan 5 Administrator, appealed on behalf of CWS Enterprises, Inc. (“CWS”) the Order and Judgment to 6 the Ninth Circuit Court of Appeals. 7 2. As authorized by the parties’ stipulation and an order entered by this Court on 8 December 19, 2014 [Docket Item No. 48], Flemmer on behalf of CWS ultimately established a 9 blocked account holding $3 million as security (the “Blocked Account”) in lieu of posting a 10 supersedeas bond pending the appeal (the “Blocked Account Order”). 11 12 3. On September 13, 2017, the Ninth Circuit Court of Appeals affirmed the Order and Judgment. The mandate issued on October 6, 2017. 13 4. Spacone and Spiller McProud now desire to access the $3 million in the Blocked 14 Account for payment by Spacone on behalf of CWS to Spiller McProud toward the total amount 15 due to Spiller McProud under the Third Amended Plan of Reorganization (the “Plan”) confirmed 16 in the Bankruptcy Case. 17 18 5. Spiller McProud is establishing an escrow account at First American Title to accommodate payment of the amount due to it (the “Escrow Account”). 19 6. The parties have agreed to stipulate as set forth below. 20 STIPULATION 21 The Blocked Account Order should be amended to allow disbursement by Spacone, on 22 behalf of CWS, of the $3 million being held in the Blocked Account, plus interest if any, into the 23 Escrow Account to facilitate payment of amounts due to Spiller McProud, and Spacone shall 24 thereafter close the Blocked Account. 25 26 27 28 1727314.2 -1STIPULATION AND ORDER FOR PAYMENT FROM BLOCKED ACCOUNT Case No. CIV S-12-0142 KJM 1 Dated: November 9, 2017 BENBROOK LAW GROUP, PC 2 By /s/ Bradley A. Benbrook BRADLEY A. BENBROOK brad@benbrooklawgroup.com Attorney for Hank M. Spacone, Plan Administrator 3 4 5 6 Dated: November 9, 2017 DAHL LAW, ATTORNEYS AT LAW 7 By /s/ Walter R. Dahl WALTER R. DAHL wdahl@dahllaw.net Attorneys for Spiller McProud, Attorneys At Law 8 9 10 11 12 13 ORDER 14 1. 15 The Blocked Account Order is hereby amended to allow disbursement by Hank M. 16 Spacone, Plan Administrator, on behalf of CWS of the $3 million being held in the Blocked 17 Account, plus interest if any, into the Escrow Account to facilitate payment of amounts due to 18 Spiller McProud. 19 2. Hank M. Spacone, Plan Administrator, shall thereafter close the Blocked Account. 20 21 DATED: November 9, 2017. 22 23 UNITED STATES DISTRICT JUDGE 24 25 26 27 28 1727314.2 -2- STIPULATION AND ORDER FOR PAYMENT FROM BLOCKED ACCOUNT Case No. CIV S-12-0142 KJM

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.


Why Is My Information Online?