Securities and Exchange Commission v. Nadel et al

Filing 1344

NOTICE of supplemental authority by Wells Fargo Bank, N.A.. (Attachments: # 1 Supplement Authority)(Wirth, Steven)

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION
SECURITIES AND EXCHANGE
COMMISSION
Plaintiff,
v.
ARTHUR NADEL,
SCOOP CAPITAL, LLC,
SCOOP MANAGEMENT, INC.,
Defendants,

CASE NO.: 8:09-0087-T-26TBM

SCOOP REAL ESTATE, L.P.,
VALHALLA INVESTMENT PARTNERS, L.P.,
VALHALLA MANAGEMENT, INC.,
VICTORY IRA FUND, LTD.,
VICTORY FUND, LTD.,
VIKING IRA FUND, LLC.,
VIKING FUND, LLC., and
VIKING MANAGEMENT, LLC.
Relief Defendants.
WELLS FARGO BANK N.A.’S NOTICE OF SUPPLEMENTAL AUTHORITY
Wells Fargo Bank, N.A., hereby notifies the Court and all parties of a recent published
Eleventh Circuit decision, Title Max v. Northington (In re Wilber), no. 16-17467 (11th Cir.
December 11, 2017) (holding that where state property law operates automatically – i.e., with
no judicial action required – state law will continue to operate during a bankruptcy case;
consequently, estate property that is subject to automatic transfer or revocation upon default
will necessarily be removed from the bankruptcy estate upon default, divesting the Court of
jurisdiction to otherwise affect the creditor's rights to the property).

43690579;1

Wells Fargo submits this Eleventh Circuit decision because it recognizes the deference
owed by federal courts to state-law regulations of property rights, and confirms the Rents at
issue in the Bank's Motion for Order Directing Receiver to Turnover Rents from Rite Aid
Property [Doc. 1332] became the exclusive property of Wells Fargo by operation of state law
before this receivership commenced, and well before the Court entered its orders approving
the sale of the Rite Aid Property. Simply put, pursuant to the Eleventh Circuit's decision in
Title Max, following the pre-receivership default under the Rite Aid Loan Documents, Wells
Fargo did not have a mere “claim” to the Rents that could be administered in this receivership
– rather, the Rents automatically became the exclusive property of the Bank pursuant to the
Assignment of Rents and North Carolina law. Therefore, the Rents are not property of the
receivership estate and this Court does not have the authority to impair the Bank's state-law
property rights to them. See id. at *4. A copy of the decision is attached to this notice.
CERTIFICATE OF SERVICE
I hereby certify that on December 27, 2017, I electronically filed the foregoing with the
Clerk of the Court by using the CM/ECF system.
Respectfully submitted,
/s/ Steven R. Wirth
AKERMAN LLP
L. Joseph Shaheen, Jr.
Florida Bar No.: 212385
Email: [e-mail]
Steven R. Wirth
Florida Bar No.: 170380
Email: [e-mail]
401 East Jackson Street, Suite 1700
Tampa, Florida 33602
Telephone: [phone]
Facsimile: [phone]
Counsel for Wells Fargo, N.A

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