Keith's Tree Farm v. Grayson National Bank et al
Filing
11
MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on 8/4/15. (eot)
D 7Dm OF GEU S DI rnlli
d
FI
BK . l
&
A FlFn V
T- lA A
I TH E UN I
N
TED STATES D I
STRI COU RT
CT
FO R TH E W ESTERN D I I O F V I I I
STR CT
RG N A
R OAN O KE D I I ON
V SI
Ak ûi 2 1
6
25
JULI C.
A
BK
'
KEI ' TREE FARM S,
TH S
DE
A ppe l nt
la ,
RK
L
Ci lAd i n N o. 1 CV vi
o
7: 5- 00015
M EM O M ND U M O PI O N
NI
GRAYSON NATI
ONAL BANK,
FI
RST COM M UNI BANK ,
TY
CHRI
STOPHER M I
CALE,Tr t ,
usee
By:
Hon. e E.Corr d
Gln
la
Chi fU nied St t sD i t i tJ
e
t
a e sr c udge
Appelee .
l s
l t sa
n hi ppea fom t Unie Stt Ba ru cy Cour f t W ese n Diti ofVigni
l r he t d aes nk pt
t or he
t r srct
r i a,
Ap eln Ket ' TreF r (h ç a m' s e r ve o t b n r pc c u tsme rn u
p l t ih s e ams t e $ r ' e ks e iw f he a k u ty o r' mo a d m
a
F )
o ni n a o de de ng c im ai ofist r a e d pl de ng l vet f rhe n e
pi o nd r r nyi onfr ton t hid m nde an, nyi ea o ' t r m nd
u
t pl a di m i sng isCha e 1 ba u c pe ii Fort f l i r as ,t c tw il
he an, nd s s i t
pt r 2 nkr pt y tton.
he olow ng e ons he our l
a fr t de s on oft ba upt y c ti f l
f im he d i
he nkr c our n ul .
Backeround
TheFa m i age a pa t r hi o r tng i W yt a Ca r lc i si Vigi a. t
r s ner l rne s p pe a i n
he nd rol ounte n r ni I
s l Chr sm a a lve nur e y tees a al o pr dest u ng s r i s bot f t ha i of
els i t s nd i
s r r , nd s ovi r cki e v ce , h or he ulng
istee a f lmesonepr e sa us r . tsKeih a hi t s nsac asge r l
t r s nd or i t
oduc r nd e s Curi
t nd s wo o
t
ne a
pa t soft Fa and Ve naKet M r Ke t swie, e vesasiss r tr a boo e r
rner he nn,
r
ih, . ih' f s r
t ec e a y nd kke pe .
On Augus 1 201 t Far tl d avo untr ba upty peii unde Cha e 1 oft
t 4, 3, he m se
l a y nkr c tton
r pt r 2 he
Bankr c Code 11U. C.jj 1 ç s q.nispeii t Fpm rpored$167 1 26i
upty
,
S.
201 1 e l t tton,he r e t , 4,48. n
scurdcli ,i l ng$1383, 68owe t Grys Nai lBank(t 'a
e e ams ncudi , 962.
d o a on tona
;
GNB' nd
)
$206, 4. o t Fis CommuniyBa (: '(ole i l çhes curdcedior* .
11 47 wed o rt
t nk $
FCB' c lctvey,ç e e r t s'
)
t
)
TheFa sl istr tpln f r ga zai n o Nove be 1 , 2013.
nn ed t s s a or eor ni to n
m r 2
The s c e
e ur d
ce io sfldo j vin t t spa la d dt eCha tr1 tu te OnDe e r4 2 3 t e
r dtr ie b e to s o hi ln, s i h
p e 2 r se .
c mbe , 01 ,h
Cha e 1 tuse alo tl am o i t dimist Fa m ' pe ii on t ba i t tt Fa m '
pt r 2 r t e s ied
ton o s s he r s tton he ss ha he r s
a lt t m a pl n pa e s w a çs c a i a be t' B n . Doc tNo.33biiy o ke a ym nt s spe ul tve t s . nkr
'
kt
1.
Theba kr c c t edconfr ai n oft Fa m ' trtpln f rr or ni ai on
n upty our deni
im to
he r s i s a o e ga z ton
M a c 1 201 The e fe ,heFa n nde ispl n a s hed e Bot s ur d c e t r
r h 3, 4. r a t r t
nn me d t a nd c uls. h ec e r dio s
o jce t t ea n e pa a dav nfr to h ai wa s h d ldf rJ n 5 201 .
b e td o h me d d ln n o imain e rng s c e u e o u e , 4 On
Aprl29,201 howe r t Fa m fl as c a e
i
4,
ve , he r ied e ond m ndedpln,a t n,a oxi a ey one
a nd he ppr m t l
we kltr at id. s c r dce i r o j ce t t t id a nd dpa , r ungt a iwa
e ae, hr The e u e r dt s be td o he hr me e ln ag i h tt s
o
no fl d i good f t t ti f l t pa t pr s ntva ue oft s ur d cl i s a t ti w as
t ie n
aih, ha t aied o y he e e
l
he ec e a m , nd ha t
no f asbl O n M a 23,201 FCB a s f l d a m oton t di m i st Fa m ' pe ii a gui
t e i e.
y
4,
l o ie
i o s s he r s tton, r ng
t tt Fa m ' r pe t i biiy t c a ta c im a e pl n r uled i unr as bl a
ha he r s e a ed na lt o r f onfr bl a es t n e ona e nd
p eu iil ea t c e io sa dc ni un l st t ee tt .
rj d ca d ly o r dt r n o tn ig os o h sae
Theba r c c thel ahea i on c ima i oft t r a e d pln a t
nk upty our d
rng
onfr ton he hid m nde a nd he
t pe ng m o i nst dim ison J 5,201 Se Hr Tr a 4,Ba c . ke No.1 Att
wo ndi
to o s s
une
4. e g. . t
nlr Doc t
30. he
be nni oft the r ng,t Cha e 1 t s e w ihdr w hi m o i t di m i s l vi onl
gi ng ha a i he
pt r 2 nzt e t e
s ton o s s , ea ng y
FCB' moton pe ng.1 Theba upt c ta kedt pari whe he t y s ul tr t
S i
ndi d.
nkr cy our s
he tes t r he ho d i s
a d e sF Smo int ds s o teo j cin t c nfr to o t tida nd dpa 1 .
d rs CB' to o imis r h b e to s o o imain f he h r me e ln. d
a 5. a e t prm a y bas sf FCB ' m oton t di m i sw ast Fa m ' i biiy t pr
t Bec us he i r
i or
S i o s s
he r s na lt o oduc a
e
c im a e pl n,
onfr bl a eouns f FCB s
el or
ugge t d t tt co the r e de e on t c edior '
s e ha he ur a vi nc
he r t s
obe tonst t t r a nde plna t fasbiiyoft plnbeor c i rngt moi
j ci o he hid me d a nd he e i lt hat a f e onsdei he ton
hat
t di r ss. I . To t end, M r and M r Keih t tf ed ext vel i suppor oft pl l at
o sni 2 d
.
s. t es il
ensi y n
t he an. d.
l e io Frt n o Vignaas o j ce t ti pa b tltrwi rw ta o jcin.
Crdtr is Ba k f rii lo be td o hs ln, u ae t e h t beto
hd
2A tt ss a i t pr ee ngs c elf t Far not t t ban upty c tt tFCB' m oton ha
hi t ge n he oc di , ouns or he m ed o he kr c our ha
S i
d
no bee fl m or t 21da beor t hea i l N ot ngm or wass da
t n ied e han
ys f e he rng. d. hi
e
ai boutt tm elne oft m oton.
he i i ss he i
1 1 GNB t n c le Tom Ge r , aba e c i f m iirwih t Fa sac ount t
5- 22.
he a ld
nty
nk xe utve a la t he nn' c , o
t siy a i tc im ai oft pln. I a 1 1 Att cos oft he rng,t bn pty
e tf gans ontr ton he a d. t 22- 48. he l e he a i he nknz c
cour t t pe ng ma t sunde a s m e . d. a 1 Thec t ovi d t pa te wih
t ook he ndi
ter
r dvie nt l t 49.
our pr de he ris t
tmet s i a tonal itng on alou sa i is s i l ng FCB' m o i n t dimi s
i o ubm t ddii brei
l tt nd ng s ue , ncudi
S to o s s .
Se j=;s ealoJ 1 201 Or r Ba . ke No.1
e l. e s une 0, 4 de, nkr Doc t
25.
On Od obe 3, 4, he ba u c c ti s d a opi on de ng c im a i o t
r 201 t
nkr pt y our s ue n ni
nyi onfr ton f he
Fa m ' t r a e
r s hid m nded pl n.Se M em . ,Ba . Doe tN o.1 Thecour f
a
e
Op. nkr
ke
36.
t ound t tt pln
ha ht a
f l bot be us i wa no f asbl a bec us i f ld t pr det s ur d c e t swih
aied h ca e t s t e i e nd a e t aie o ovi he ec e r dior t
t f lpr s tval oft i alow e cl m s The ba upt y c tde e t Fmn l a t
he ul e en
ue he r l d ai .
nkr c our ni d he n e ve o
f t ra e ispln a trco l ngt tt Fa m f ie t s
urhe m nd t a fe ncudi ha he r al d o how ar as
e onabl lkelhood of
ei i
r or nia i I t r or g a e FCB' motont dim ist Fa m ' pe ii wihout
e ga z ton. t he ef e r nt d
S i o s s he r s tton t
p eu ie Afe t c u tsue ti d cso , h Fam fldamoi nt atro n n t e
rj dc . tr he o r is d h s e iin t e r ie
to o l r me d h
e
j d me ta srigta t b n nltyc u tsd cso t ds s isp tto c n tt tdlg lo
u g n, se t h t he a k pc o r' e iin o imis t eiin o siue e a r
n
f c uale r .Se Ba . ke N o.1 Specfc ly,t Fa m a g t tFCB' m o i t
a t ror e nkr Doc t
42.
ii a l he r r ued ha
S ton o
dim iswasuntmel a t tdim is lbas d on a moton notpr rype ngbef et c t
s s
i y, nd ha s s a e
i
ope l ndi
or he our
vi a e isdue pr ce s rght . ba upt y c t e t Fa sm o i on N ove be 1
ol t d t
o s i s The nkr c our deni d he nn' ton
m r 7,
3
nkr cke
2014. See Ba .D o tN o. 157.
3Th a p lesag eta ti c u ta k jrs ito o e ti a p a, c u eteFa ddno fl an tc o
e p ele ru h t hs o r lc s uidcin v r hs p e lbe a s h nn i t ie oie f
a p a wi i 1 d y o t b n rpc c u tsd cso o t gi ta t fl amoint atro a n tej d me t
p e l t n 4 a s fhe a ku ty o r' e iin, pi nse d o ie to o l r me d h u g n
h
n
e
i t ba upt ycour.Acc di t t a l s t sm oto a tm ptd t r -ii t t m otont dim is rt r
n he nkr c
t or ng o he ppelee , hi
in te e o e ltgae he i o s s , ahe
t nt ha t co tco r tamanies er ofl orf t Se l r M i v A ilnes l ,1 B . 1
ha o ve he ur rec
f t ror aw ac. e n e dwa ri . nc. 80 R. 009,1 2
01
t n rN. 11 1 9 )(-h fncino amoin(oatro a n li n tosrea av hcet rliaeodmatr
Ba k . D.1. 9 5 xf e u to f to t l r me d s o t ev s e il o eig t l tes
f'
e
t
o t p ee th c s u d ran w lg lh oy' . ea p le stu ag eta teFam' moint atro a n dd
r o rsn te ae n e e e a te r .lTh p ele h s ru h th r s to o l r me d i
'
e
nott lt tm e w ihi whi i nee t fl a notc ofa alt t sc t Alhough t c tuli a el di a ee
ol he i
t n ch t ded o ie
i e ppe o hi our . t
he our tm t y s gr s
wih t Fa sa g
t he nn' r umen swihr s tt dimis ofisc e, dic s he en,t c tbele t tt Fa m
t t e pec o s sal t as as s us ed r i he our ives ha he r
fldt m otont atrora e w ihagoo f t beift tt ba m z c c tha i ope l r l onSeihe a
ie he i o le
m nd t
d aih le ha he nl pty our d mpr ry ued û t r
wihdr ori ope moton, whih m i hav consiutd a e orof1w o f c a oprael a e s d i a
t awn mpr r i ' c ght e
'
tt e n n'
a r a t ppr it y ddr s e n
m o i t atroram e SeeRe yBr a 4- Doc tNo.8. cou tt fndst tt Fa m ' m oto t ale o
ton o le
nd.
pl . t 5, ke
The r hus i ha he r s in o tr r
a e t l d t tme perod w ihi whi h i ne d t fl is notce ofa l lsNov be 24,201 no i ofappe ,
m nd ole he i
i
t n c t ede o ie t i
ppea . t
em r
4 tce
al
fld wihi 1 da oft ba u cycour' de sondenyi ism oto t alerora e wa t r f r tm el fld.
ie t n 4 ys he nkr pt
ts cii
ng t
in o t
m nd, s he e o e i y ie
TheFa m tm ey a al t ba pt y c tsde ii n. m at rhasbee bref d
r i l ppe ed he nknt c our' c so The te
n ie
a t c thea d a g e o Am i 7,2015. Them ateri now rpe f r ew .
nd he our r r um nt n
l
t s
i or evi
st ndar ofRq e
a
d
viw
Th c u t sa p laej rs ito o e t sma trp ru n t 28U. C.j1 8 a .
e o r ha p elt u idcin v r hi te u s a t o
S.
5 () The
diti tco tr vi wst ba nl c co t fndi off c f cla e r . n r M e r
src ur e e he nk pt y urd i ngs a t or e r ror I e ry-Go k
s
-lound
Entprss 1 F. 1 1 ( hCi.1 ;Ba u c Rul 801 C fndi i Slal
e ie , 80 3d 49, 54 4t r 999) nkr pty e 3.t i ng s ce ry
A
e
noneous whe at h t r i e denc t s
' n, lhoug he e s vi e o uppo ti,t r viwi coul on t e iee de e
r t he e e ng
' he ntr vi nc
t
i l 4wih t de i t a tr c ci t tamit keha be n c mit d. Ande s n v.
s ef t he fnie nd im onvi ton ha
sa
s e om te '
'
ro
Beseme Ciy,47 U. 564,573( 985) A r ar s lbegi nt t o t t oft
s r t 0 S.
1 .s eg d hal
Due
ve o he pporuniy he
b n r p c c u toj g tece i lt o wi e s s'Fao k v Emiae Ba kI t Lt ,1 F.d
a k u ty o r t ud e h rdbi y f t se . r u i . rts n n' d. 4 3
i
n
'
l
244,250( h Ci.1 .Thepa t s e ngrveraloft ba upt c tsfct fndi beas
4t r 994)
ry e ki e s
he nkr cy our' a ual i ngs r
t bur n ofpr ngt tt etndi a ec e ry e r ous l r Ra ,1 B. 741,
he de
ovi ha hos i ngs r l a l rone . n e pe 04 R.
747
( . N . 1 .A bank pty c tsc usonsoflw,ont ohe ha aer vi ét
W D. C. 989)
nz c our' oncl i
a
he t r nd, r e ewed
novo.nr Haf dSa l ,372F. 63 639( hCi.
I e ror nds nc.
3d 7, 4t r 2004) l a is prs nt ami
.f n sue e e s xed
que ton of1w and f c , hecou ta i t c e ry erone sa dt t f c ua po ton oft
si
a
a tt
r pples he l a l r ous t ndar o he a t l ri
he
i r a étnovorviw t lgalc usonsdei fom t efcs Giba Bl Co.v.Fe
nquiy nd
e e o e oncl i
rved r hos a t. l ne dg.
d.
Resr eBa 8 F. 895,905( h Ci.1 .slle sonsmadei t e rieofaba u cy
e v nk, 0 3d
4t r 996) tgl cii
l
n he xecs
nkrpt
c tsdic ei wilnotbe s ta i unls t r i pli e r ora ab e ofdic e i 'I r
our' s r ton l
e sde e s he e s a n ror n us
s r ton. n e
'
Lawls ,79B. 850,852( . M o.1 )
es
R.
W D.
987 .
Di si
scus on
The Far a a ss ve a f e soft ba u c co tsOc obe 3,201 de ii The
m ppe l e r l ac t he nkr pt y ur' t r
4 c son.
c twila fr t ba z cy c tsde son i ise iey f t r as outi dbeow.
our l fim he nk upt our' cii n t ntr t or he e ons lne l
4
Z
De a o a Co fr t n
nil fpl n n mai
o
The Fa m a gue t t ba ru c c te r d i notc i m i t Fa m ' t r a e d
r r s hat he nk pt y our r e n
onf r ng he r s hid m nde
pl n. cour i eo t a ned t di a r e.
a The
t s nsr i
o sge
Thes c edce t sobecedt c imai oft Fa st r n nde plnona
e ur rdior j t o ontr ton he nn' hid me d a
num be ofg o
r r unds i l ng t tt pl n pr
, nc udi ha he a opos d an unr as bl 1 i e e tr t t ti w a
e
e ona y ow nt r s a e; ha t s
no pr
t opos d i g
e n ood f ih;t ti pr
a t ha t opos d t a ori e t pl pa e s ove a perod t tw a
e o m tz he an ym nt
r
i ha s
notcom m er i ly r a ona e a t ti unf il di c i i t d a ong c edio s Se Bnnkr M e .
c a l e s bl ; nd ha t a ry s rm na e m
r tr . e
. m
Op. t1 - 3; e as 1 U.. j1 2 ( u l i c i rawihwh c aplnmu tc n o i o d r
a 2 1 s e lo 1 SC. 2 5 o ti ng rt i t ih a s o f nn n r e
n
e
t bec ime .l ac e t c lnge a ee n rquie f c imaton,hede orbe r
o onfr d) f r dior hale s ny lme t e rd or onfr i t bt a s
t bur nofpr ngisc inc t rwih.Se l r Br 244B. 603,607( nkr W .
he de
ovi t ompla e hee t e n e own,
R.
Bn . D.
Va.2000)
.
Theba upt c t e us d t co im t Fa st r pr e a e
nkr cy our r f e o nfr he nn' hid opos d m ndedpln i pa t
a n r
be us t c tf
ca e he our ound t tt pl n wa no f asbl W he decdi whe he t c in a
ha he a
s t e i e.
n i ng
t r o onfln
pr e Cha e 1 pl n,aba pt y c tmus c i rwhe he û hede orwilbea et
opos d
pt r 2 a
nknl c our
t onsde
t rs
t
bt
l
bl o
ma eal a me t u d rteplna t c mpl wi t ep a . 1 U. C. 1 2 ()6 .
k 1p y n s n e h a nd o o y t h ln' 1 S. j 2 5 a( )
h
'
Fea i lt i Sunda nt l afctquesim.'nr Rape 1 B. a 74#(ii l r Cr e
sbiiy s t me aly a
f
tt 'I e
, 04 R. t
ctng n e owly,
8 B. 7 , - 9( . W i.1 8 ). fndt a apa i fa il,s ec u t s b pes a e
5 R. 6 787 W D. s 9 8 ) To i h t ln s e sb e lh o r mu t e ru d d
t
t t1ti pr bl,notm e el pos i eorhopef ,t tt De or c n a t ly pa t
ha i s oba e
r y sbl
ul ha he bt s a cual y he
r sr ct e deb a peror al oblga i oft pln.' l r Hug , 0 80 1 200 W L
e tu ur d t nd f m 1 i tons he a '' n e
hes No. 6- 2 9, 6
2620438 a * t nk-M . N. Se .11 2006)(ii l r Ra 1 4B. 7 ,749
, t 3 Ba 4. D. C. pt ,
ctng n e pe, 0 R. 41
( . N. 1
W D. C. 989:;seI r Hone
e ne
yman,201B. 533,537t nkr D. D.1 (ttngt ta
R.
Ba . N. 996) sai ha
plnmus bet s donr lsi a obe i fcsa o edt vii yorovel optmitc
a
t i e
ba
eaitc nd jctve a t s ppos o sonar
ry i si
prj ci '
oe tons).
i hie t de orbe r t uli ae b de ofpr a t t f asbiiy oft pln, t
d l he bt a s he tm t ur n
W
oof s o he e i lt
he a he
c ts ul gi t Cha e 1 de ort be ftoft doub r a di t is off asbiiy
our ho d ve he pt r 2 bt he ne i he
t eg r ng he sue e i lt
whe t ed b o ' p a p oe o u era o a l d t i lg to t ec re te o o cci t.
n h e t rs ln r jdins s e s n be aa n ih f h u rn c n mi l e'
ma '
l r Hug s 2006 W L 2620438,a *3.t' c tmus as c i rt f r ' ea ni powe ,
n e
he ,
t Clhe our
t lo onsde he a m s r ng
r
ca t lsm c ur m a gerale fcenc pa tpe f r nce a whehe t s mem a ge nt
pia t t e, na i fi i y, s r o ma , nd
t r he n
na me
w ilco i t ope a e t f r . 1 ç sbiiy i ne rc r a n, r i ul r y i f r s t tons
l ntnue o r t he a m ' d. ç i lt s ve e t i pa tc a l n a m iua i .
'
Fea
l i a e e ntofc im a i t ti d f ul t pr equal dife tt decde. l r W ie,
t s n l me
onfr ton ha s ilc t o ove,
ly fi ul o i ' n e s
'
No.1 07535,201 W L 2421 a *3( S. M a 31 201 .
23
984, t D. C. y , 3)
l t sca e t ba upt y c tc i r d M r Ket st tmony r r ng t sae of
n hi s , he nkr c our onsde e
. ih' esi
ega di he t t
t Fa sope a i a t vaueoft te on ispr pe t M r .Keih' t si o a t t
he nn'
r tons nd he l
he r es t o ry, s
t s e tm ny s o he
Fam' c hfo prj ci ,a t pa nt madebyt Fam t t Cha e 1 tuseepror
r s as lw o e tons nd he yme s
he r o he ptr 2 r t i
t co i i Uli ael t cour decde t tt se de ewasi ufi intt pr t tt
o nfnnaton. tm t y, he
t i d ha hi vi nc
ns fce o ove ha he
t r a
hid mende pl n wa f asbl Spe ii ly,heba u c c tf
d a
s e i e. c fcal t
nkr pt y our ound t tt Fa s
ha he nn'
prj tons pr pae byMr . ih,c ai ds verlsg fc ter s trndei gha d a)
oeci , e rd
s Ket ont ne e a ini an ror,te rng t t at
i u fce tt p nnit e(o rlt c n ld ta tef n il rj cin ..r mo elk l tu
ns fiin o e t h c u t o o cu e h t h i ca p o e to s .ae r iey r e
na
t nnot'M e .Op. 15. e m pl ,t ba
ha
. m
'
at For xa e he nknl c c tf
pty our ound t t alho h t Fa m had
ha , t ug he r
p o e tdap stv n tc s baa c o $ 92 0f rt y a ,th d ia v re tyo te $ 4,0
rj ce o iie e a h ln e f 3 ,4 o he e r i a n d e tn l mitd 5 0 0
wo t o s lr p y n sfo isp oe t ns I a 1 - 6. o e v r t p o e to slc e
rh f aay a me t r m t rj ci .d.t 5 1 M r o e,he rj ci n a k d
o
c i t ,f e mpl ,t m ont ofM a endswih ac h baa of$3, 0, t m o h of
ontnuiy' or xa e he
h
y
t as lnce
58 but he nt
J beg nswih aca h baa eof$ 98 Consde i t s dic e nc e a omi so ,t
une i t
s lnc
24, 0.
i rng he e s r pa i s nd s i ns he
ba tuptyco tc ude t tie ntki gheFam')prj ci i t lg mos fvorbl
nlr c ur oncl d ha,çve a ng t r s o e tons n he iht t a a e
t ispos ton, he pl n i notf a i e ' I a 1 The ba
ot
ii t
a s
e s bl .' d. t 6.
nknz c c tal o c i r M r
pt y our s ons de ed .
K e t st s i ony t tpr r y owned by t Fa m c a ned m ilonsofdola s' or h oft e
ih' e tm
ha ope t
he r ont i
li
lr w t
r es
t ei l i lghtofconta cor evi nc Se j sThec tutmael de de t tt Fam
mrlabe n i
rdit y de e. e .
d
our li t y ci d ha he r
ha f ie t me tisbur n wih r pec t f a i lt , gi n t t a e i de e t 'i t Fa m '
d a ld o e t
de t es t o e sbiiy ve he i t ral f c s' n he r s
m
i om e a e
nc
nd xpens pr di t o a M r K e t s l e ona y optm i tc ' esi ony. 1 at 17.
e e c i ns nd . ih' ç as bl
unr
i s i ' t tm
d.
Ona
ppea , he Fa m poi s outt ti m ade pa ent t t Cha e 1 t us e i
lt
r
nt
ha t
ym s o he
pt r 2 r t e n
a or ncewih t tr soft pr ed pln prort e i ma i Thec ta e t t
cc da
t he e m
he opos
a i o ontr ton.
our gr es ha
vol a y pa e sunde apr e pln ma we g i f voroff a i lt , butt te de e i
untr ym nt
r opos d a
y ih n a
e sbiiy
ha vi nc s
c ra nl notc l i The Fa m a s a g st tt s c e c edior f iedt pr s nta
e ti y
oncusve.
r lo r ue ha he e ur d r t s a l o e e ny
e de ec r ci t Fam' prj to orval tons howe r t yweenotr quiedt
vi nc ontaditng he r s oecins
uai ;
ve ,he r
e r o
dos Se l r Hug ,2006Ba .LEXI 228,a *7( i t tt bur nofpr wih
o. e n e hes
nkr
S
t notng ha he de
oof t
rs c t fasbiiyi ont de or.Fi ly,t Fam e
e pe t o e i lt s he bt ) nal he r mpha iest tba upc co t ofe
sz ha nkr ty urs tn
ç ve f m iy f r de or t be s oft doubto t i s off s biiy, a f nni c n be
i
gi a l a m bt s he nett he
n he s ue ea i lt ' s a ng a
'
a unce t n ve ur .l r W ie 201 W L 2 984,a *3. ti tuet t whenwei ng
n
rai nt e n e s , 3
421
t l s r ha ,
ghi
e de eoff a i lt ti i noter rf ag nk upty)c toc i ,aongwiht had
vi nc e sbiiy,kt s ro or ba z c our t onsder l
t he r
numbes t huma fcor'J , t tdoe no gi t bank pty c tlc ns t inor t
r,he
n a t . #-But ha s t ve he
'
nl c our ie e o g e he
ha dnum be sat t r Atbotom,t ba u cy c tm us de e mi ,bas d on t e de e
r
r logehe .
t
he nkr pt our
t t r ne e
he vi nc
pr e e t t rt t ngswhih a et bedoneafe confr ai c n be do a apr tc l
es nt d, s he he hi
whe
c r o
tr
im ton a
ne s aci a
matrunde t fcs'l r Ra 1 B. a 748- (ii I r Clr on,767F. 41 420
te
r he a t.'n e pe, 04 R. t 49 ctng n e aks
2d 7,
( h Ci.1 5).Hee,heba uptyco tc r uly c i r t r or a c l t ti
8t r 98 ) r t nkr c ur aef l onsdeed he ec d nd oncuded ha t
wa unlkel t tt Fa m coul c r outt r quie nt ofispr e pl n.Thi de son
s i y ha he r
d ary
he e r me s t opos d a
s cii
w a notcl a l e
s
e r y none .4
ous
I
L
De alo av t Ame
ni fLe e o
nd
The Far al o a guest ,e i t ba u cy c tdi note ri de ng c im a i n
m s r
hat ven f he nkr pt our d
r n nyi onfr to
4On a l t Fa m alo a s rst tt ba upty c tc m it ero w h ide e c imaton ba ed
ppea, hv r s s e t ha he nkr c our om ted r r en t nid onfr i
s
ont te t e ofs r d c e t sundert t r a e d pl Specii ly,heFa m a gue t tt ba pty
he r am nt ecu e r dior
he hid m nde an.
fcal t
r r s ha he nknl c
c u t re i d cdigt a t ep a sp o os di tr s r t a d a ria inpe id d dn tc mp r wi l U. C.
o r e r d n e i n h t h ln' r p e n ee t a e n mo t to ro i o o o t t 1 S. j
z
h
125a()B) S eAp . .t1 -4 Do k t . .Me Op. t1 - l Be a s tec ut fimsteb n nlty
2 ()5( . e p Br a 0 1 , c e No 5 m. a 7 2 . c ue h o r afr h a k pc
,
c tsde son t de co i tonoft pln o f i lt g ounds t c t ednota es t atr tve
our' cii o ny nfnnai
he a n easbiiy r
, he our ne
ddr s he lenai
g oundson whih t ba upt cou tde e c ima i
r
c ht nkr cy r nid onfr ton.
ofist r a e d pl i e r d i de ngt Fa la t f t n e ispln. The c ti
t hid m nde an, t re n nyi he nn e ve o urher m nd t a
our s
a n c tai t di ag ee.
gai onsr ned o s r
Theba t c co tsde alofl a t a nd i r vi wed f a eofdi c ei onl .
nkupt y ur ' ni
e ve o me s e e
or bus
s r ton y
Se l r Ro d 42 B. 5 8 5 7( Md. 1 ) Ac o dn l th g itit o r mus a fn
e n e o , 6 R. 3 , 5 D. 20 0 . c r igy,û e dsrc c u j t fi n
t
l
u d rt ea us o ds rto sa d r u ls i ûeemie s t t h (a k u ty c u t a ma ea
n e h b e f icein tn a d ne s t d tr n ll ha t e b n r p c q o r h s d
cl rer ofj
ea ror udgme orha a idani orec lga sa r ''Patm a & Fi s P. v.
nt s pple
nc r t e l tndadv' se k di. C.
W is No.1 013 201 W L 48261 a *5( Md.Se .23,201 (ii Pur elv.
lon,
4- 08, 4
09, t D.
pt
4) ctng c l
Ba kAt nt Fn. p.8 F.d 1 0 ,1 3( 1h Ci.1 9 :. i me n ta i n e tea s o
n l i i Co , 5 3 5 8 51 1 t r 9 6 Th s a s h tl d r h bu e f
a c
u
dicrtonsa r t r wilbeoc asonsi whih Ehedititc t afi t g nkr pty)
s ei tndad hee l
c i n c t src ourj fnns he ba u c
c u t v nt o g g )wo dh v g n teoh rwa ha ibe n ( s c 1. I ( iigM a ki v.
o r e e h u h i ul a e o e h t e y d t e i ) a1'd.ctn c ln
t
t
'
Si lt 24F.d 13 1 1( 1hCi.1994
ncerv, 3 07, 31 1 t r
:.
l de ngt Fa m f t rl vet a nd ispl n,t ba nl cy c te
n nyi he r urhe ea o me t a he nk pt our mphasze t
i d hat
t Fa m ha ar a tld f truns ce sulpl . c tf
he r
d le dy le o l uc s f ans The our oundt ts c sulco ima i of
ha uc es f nfr ton
a ypa a p ae u lk l ,ço sd rn tec n itn o j ci n t c n imain lo o e ie c
n ln p e rd n iey ç n ie ig h o sse t be to s o o fr to ,a k f v d n e
c
s fiin t o e c meteo j cins a dt ei blt o te (II' a isce i r t r a h a
u fce t o v r o h b e to , n h na ii f h F a' nd t r dt s o e c n
y
I
n
o
agr e e on a as c oft pl n. M e . p. t22.Acc di l t ba kr cy c t i
e m nt
ny pe t he a ' m O a
'
or ng y, he n upt our dec ded
t tdgj horzngla t a ndwoul bef ils .'d.a 23.t3 nkr ptyco t aegi na
ha taut ii e ve o me
d nlte s'1 t < a u c urs r ve
l
gr tde lofdicr ton t s y whe enough i e
ea a
s ei o a
n
s nough' whe i co est g a i orde ng t
' n t m o r ntng
nyi he
o runiyt a ndr r ni tonplns M atrofW ood r kAs oc . 1 F. 31 322 ( h
ppo t t o me eoga zai a . te
- eo s s, 9 3d 2, 7t
b
Ci.1 . c ti noa eofdicei i t ba pty c tsde sont den la
r 994) The our fnds bus
srton n he nknl c our' cii o y e ve
t mnend i t s cas
o
n hi e.
HL
Dimisalo hePeii
s s ft
tton
Fi ly,t Far a guest tt ba u c c te r d i gr ntng FCB ' m otc t
na l he m r
ha he nkr pt y our r e n a i
S im o
di m i s ispe ii The c t s o e a i c t a ned t di a ee
s s t tton.
our i nc ga n onsr i
o s gr .
8
The Ba upty Codepr de t t
nkr c
ovi s ha
( nr es ofapa t i i ees,a a trnotcea ahe rng,t c tma dimisa
oq equ t
ry n ntr t nd fe i nd a i he our y s s
c s unde g ptr1 f c us i l ng- ( )unras edely, gr s
a e r cha e 2J or a e,ncudi
1 e onabl a or os
mima g me tb t d b o ta i p eu ca t ce io s ..5 d nil fc n main
s na e n , y he e t r h t s rj diil o rdt r; .( ) e a o o sr to
ofapl n..nd de a o ar ques m a f ra tona tm ef flng a t rpl o a
a .a
nil f e t de o ddii l i or i no he an r
mo iiaino ap a ;..rn j( )c n iun l s t o d miu ino teett a d
dfc to f ln . a d 8 o tn ig o s o r i n to f h sae n
a enc ofa r as bl lkelhood ofr ha lt ton..
bs e
e ona e i i
e biia i .
11U. C.j 1 c . de sont dimisaCha tr1 ba uptypeii i wihi t s und
S.
208() The cii o s s
pe 2 nkr c tton s t n he o
di c e i oft ba u c co t Se l r Br n, 8 F. 801 806( h Ci.1
s r ton he nkr pt y ur . e n e ow
2 3d ,
8t r 996) Hee t
. r,he
ba u c c tgrnt FCB' moi t dimisba e onisc l i t tûll i cc ae
nkr pty our a ed
S ton o s s s d t oncuson ha kthe na urt
fna iln o main g o ie b t Fam)a dt Fam')ia iiyt fl ac nima l plng
i nca if r to pr v d d y he r n he r s n b l o ie o fr be a )
t
a u tt a u r a o a l d lyt ti p eu i l oee io s'M e Op. t2 Th c u t îds
mo n o n n e s n b e ea ha s rj dda t rdt r . m. a 4. e o r fn
'
no a eofdic e i i t sconcuson, ort r as dic s d a
bus
s r ton n hi
l i f he e ons s us e bove.
The Fa m a guest tt ba upt y c tsdec son w asnone he e si e r showe r
r r
ha he nkr c our '
ii
t l s n r or
ve ,
bec us FCB' moton t dim iswasnotfl 21da o mor be or t ba upt y c tsJ
a e
S i o s s
ied
ys r e f e he nkr c our' une
5,201 he r ng.The Fede a Rul ofBa upt y Pr ed e pr de t tû tl as 21 da 'no i '
4 ai
r l es
nkz c oc ur ovi ha k e t
a
ys tce '
s ul bepr de t t de orbe or t hehe rng o t dim is oft c e. Fe R.Ba .
ho d
ovi d o he bt
f ef
t
a i n he s s al he as ' d.
'
nkr P.
2002()4) FCB fldismoint dimisonM a 23,201 - onl t ree da beor t
a( .
ie t to o s s
y
4
y hit n ys f e he
ba upt c tshea i Att c os oft the rng, we r t c t ook a lpe ngm a tr
nkr cy our'
rng. he l e ha a i ho ve , he our t
l ndi
te s
u ra s m e a pr de t pa te wih a tonaltmet fl brefng on alouttndi
nde dvie nt nd ovi d he ri s t ddii
i o ie i i
1 sa ng
is .Se J 1 201 Or ,Ba . ketNo.1 Spe ii a l t c t o de t Far
s ues e une 0, 4 der nkr Doc
25. c fc ly, he our pr vi d he m
wih2lda t s tShi bre i s r ofc imai oft t r ame
t
ys o ubmi ç s if n uppo t ontr ton he hid ndedg ha e 1 pln
cj ptr 2 a
a a a hort i opposton t t m o i t dim is' l Theb
nd ny ut iy n
ii o he tons o s s . d.
'
pt y co te iil
c ur xplcty
s a ed t ti w oul Sde e r i on al r m a ni pe ng m a t r t tlafe de e m i ton oft
t t ha t
d s f r ulng
l e i ng ndi
te s m i t r t r na i
he
obe tonst confr ton a t motonst dimist ca e'1 I tt ,t r fr ,t Fam wa
j ci o imai nd he i o s s he s .'d.n oal he eo e he r s
a f de 34 dayst r s
f or d
o e pond t FCB' m oto A lhough t Fa m fl d a pos - a i br e i
o
S i n. t
he r ie
the rng i f n
a cor ncewih t ba u c c tso de ,s eBa .Doc tNo.1 i di nota es FCB'
c da
t he nkr pt y our' r r e nkr
ke
27, t d
ddr s
S
m oton t di m i si t tbre .
i o s s n ha i f
TheFa m a tmpt t ove c
r te s o r omet somison by i itng t tFCB' motonw a t i y,
hi
si
nssi ha
S i
s mtmel
be aus FCB S d notf l d a m oton t s t n tm e f hea i ' D oc tN o.5 a 8.
c e
t
ha
i e ny
i o hor e i or rng.
' ke
t The
Ba upt Rul pr de how e r t tlf c us s n,' ba nl c c t s a i is
nkr cy es ovi ,
ve , ha ûor a e how ' a nk pt y our t y n t
m
dicei wih o wihoutmoto o noi or rg pei ge f t i t l ls rduc 'Fe R.
s rton t r t
in r tce de a) rod st orh n he ' ej e ed. d.
u
'
Ba k . 9 0 ()1 (mp a i a d d . v rl usiiainss p o theb n nztyc u ts
n r P. 0 6 c () e h ss d e ) Se ea j tfc to u p r t a k p c o r'
de ii t do s wih r pec t FCB' moton. one FCB' lt flng wa pr di a e o t
c son o
o t es t o
S i For ,
S a e ii
s e c t d n he
Far ' own l t - ie t r a ende pl M or ove , he i s spr s nt d i t m o i w e e
m s
a e fl d hi d m
d an.
e r t s ue e e e n he ton r
f m iirt t c t t pa te ,c i i t tt Cha e 1 t u t smoton t dimi s
a la o he our and he ris onsderng ha he
pt r 2 r see'
i o s s,
pr m ie on t s ar
e s d he ame gume s ha be n pe ng f s ver lm on hs Gi n t tt Fa m '
nt, d e ndi or e a
t . ve ha he r s
pe ii ha be pe ng f ne r y a ye , he bankr c cour c d ha r a ona y c l d
tton d en ndi or a l
ar t
upt y
t oul ve e s bl onc ude
t tde e r ng cons de a i oft sm oton untla tr a t rhe r ng c d be s dul d woul
ha f r i
i r ton hi
i
i fe no he a i oul
che e
d
h v ule s n b yp eu ie tes c rdce tr . e I r St l we Ra i a n .2 B. 6 ,
a e r a o a l rj dc d h e u e rdi s S e n e mto r cng l c, 26 R. 65
r
o
6 - 2( Ka l 9 )(id n 7d y n t eo c nv rinh a ign t n a u eo d srto u d r
717 D. n. 9 8 fn i g a s oi f o eso e rn o a b s f icein n e
c
Rul 9006whe ras e se j tf ngt ba u c c tsdecsont e t t he i .
e
n e ons xitd usiyi he nkr pty our' ii o xpedie he arng)
TheFa m a s as e t t tt ba r pt y c tdi notcea l saet ti plnne t de i FCB'
r lo s rs ha he nk u c our d
l ry tt ha t a d o c de
S
moton t dim isa trt J 5hea i Thi a gume i be id by bot t ba upty c ts
i o s s fe he une
rng. s r
nt s le
h he nkr c our'
doc ta is J 1 201 Or ,bot ofw hi r fec t tt c ti e d t r e on FCB '
ke nd t une 0, 4 der h
ch e l t ha he our nt nde o ul
S
pe ngm o i n f l ngt s
ndi
to olowi he ubmison oft pa te pos- arng bre s SeeBa . ke
si
he ris' the i
if.
nkr Doc t
N os.121,125.
l s ,t c t
n um he our conc udest tt Fa r ei d a pl no i a o runiy t be he d
l
ha he nn ec ve m e tce nd ppo t t o
ar
be or t ba u c cour gr nt d FCB' m o i t di m i s Be us t ba u c c t d not
f e he nkr pt y
t a e
S t on o s s . ca e he nkr pt y our di
a e isdi c e i i s doi t c twila tr is de s on.
bus t s r ton n o ng, he our l fi m t ci i
C oncl i
us on
Fo t r s nssatd, hecou twila fr t bankr pty cour' de son i 11.
r he ea o t e t
r l fim he
u c
ts cii n 1 The
Clr i die t d t s nd c rii c e oft sme or ndum opi o and t a c pa ng or r
e k s r c e o e e tfed opi s hi m a
ni n
he c om nyi
de
t al co elofr co d.
o l uns
e r
EN TER : Thi
s
da ofAug t 201
y
us , 5.
Chi fUnied St t sDititJ
e
t
a e src udge
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?