JPMorgan Chase Bank, N.A. v. Winget et al

Filing 855

MEMORANDUM FOLLOWING AUGUST 14, 2018 HEARING AND ORDER STAYING PROCEEDINGS ON CHASES FRAUDULENT TRANSFER CLAIMS Signed by District Judge Avern Cohn. (MVer)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

JPMORGAN CHASE BANK, N.A.,
Plaintiff/Counter-Defendant,

Case No. 08-13845

v.
HON. AVERN COHN
LARRY J. WINGET and the
LARRY J. WINGET LIVING TRUST,
Defendants/Counter-Plaintiffs.
__________________________________/

MEMORANDUM FOLLOWING AUGUST 14, 2018 HEARING
AND
ORDER STAYING PROCEEDINGS ON CHASE’S FRAUDULENT TRANSFER
CLAIMS
This is a follow up to the hearing on August 14, 2018 relating to several motions
regarding Chase’s efforts to collect on an Amended Final Amended against the Winget
Trust. See Docs. 790, 791-819. Specifically, the judgment against the Winget Trust is
in the amount of $425,113.115.59.1 (Doc. 568). The judgment against Winget was
limited to $50 million. (Doc. 568).
Because Winget later satisfied his portion of the judgment by paying $50 million,
Chase began collection efforts against the Winget Trust. During these collection efforts,
Chase discovered that Winget revoked the Winget Trust. With the Winget Trust
apparently empty and/or non-existent, Chase asserted fraudulent transfer claims
against Winget individually. Although Winget later reinstated the Winget Trust and

1

Upon further accounting by Chase, a Second Amended Judgment was entered
against the Winget Trust in the amount of $410,148,384.04. (Doc. 823).

purportedly returned all of its assets, Chase’s fraudulent transfer claims remain.2
At this stage of the proceedings, the law relating to collection and satisfaction of
judgments governs. See M.C.L. § 600.601, et seq. (Proceedings Supplementary to
Judgment) More particularly, because the assets in the Winget Trust are membership
interests in several limited liability companies, M.C.L. § 450.4507 (Satisfaction of
Judgment out of Member’s Membership Interests by Judgment Creditor) is involved.
Consistent with this statutory authority, the Court entered fifteen (15) orders granting
Chase a charging lien against the Winget Trust’s membership interests. See Docs.
839-853.
In light of the entry of the charging orders, and as indicated at the hearing, a stay
of proceedings on Chase’s fraudulent conveyance claims against Winget individually is
appropriate. Accordingly, proceedings on Chase’s fraudulent conveyance claims are
STAYED pending further order of the Court.
SO ORDERED.
S/Avern Cohn
AVERN COHN
UNITED STATES DISTRICT JUDGE
Dated: 9/15/2018
Detroit, Michigan

2

The Court has found in favor of Chase on its claim of constructive fraud as to
liability only. (Doc. 732). Chase’s claims for damages and actual fraud are pending.

2