In re Flyboy Aviation Properties, LLC

501 B.R. 828, 2013 WL 5775143
CourtUnited States Bankruptcy Court, N.D. Georgia
DecidedOctober 24, 2013
DocketNo. 13-55775-BEM
StatusPublished
Cited by1 cases

This text of 501 B.R. 828 (In re Flyboy Aviation Properties, LLC) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Flyboy Aviation Properties, LLC, 501 B.R. 828, 2013 WL 5775143 (Ga. 2013).

Opinion

ORDER GRANTING MOTION FOR AUTHORIZATION TO SELL REAL PROPERTIES FREE AND CLEAR OF LIENS, CLAIMS, ENCUMBRANCES AND INTERESTS

BARBARA ELLIS-MONRO, Bankruptcy Judge.

This matter came before the Court for consideration of Debtor’s “Motion for Authorization to Sell Real Properties Free and Clear of Liens, Claims, Encumbrances, and Interests” (the “Motion”), [Doc. No. 46], the objections to sale by Richard Franck, Oliver Walter Propheter, Ken Franck, and Mathis Airpark Residences Association (“MARA”), and Debt- or’s responses thereto. [Doc. No. 50, 60, 71, 72, 76, 77, 81, 82, 83]. The Court held hearings on August 15 and 16, 2013, to consider the objection of Richard Franck, and on October 15, 2013 (collectively, the “Hearing”), to consider the additional objections filed by Ken Franck, Oliver Walter Propheter and MARA. A trial was also held in the related adversary proceeding on September 23, 2013, captioned Flyboy Aviation Properties, LLC v. Franck, Adv. Pro. No. 13-5111 (the “Adversary”), to determine what interest, if any, Richard Franck has in Debtor’s property.

Present at the Hearing were Plaintiffs managing member, Joe Voyles and counsel for the Debtor, Edward McCrimmon, Lisa McCrimmon, Leon Jones and Leslie Pi-neyro. Also present were objecting parties Ken Franck, Richard Franck (individually and as president of MARA), Oliver Walter Propheter, and their counsel, William Mitchell. After carefully considering the pleadings, the evidence presented and the applicable authorities, the Court enters the following findings of fact and conclusions of law in accordance with Fed. R. Bankr.P. 7052.

1. Background

Debtor proposes to sell two pieces of real property: a 14.07 acre parcel located at 3747 Mathis Airport Drive, comprised of Mathis Airport (the “Airport”), and a 1.99 acre parcel adjacent to the Airport on which there are several airplane hangars, (the “Subdivision Property” with the Airport, the “Property”). [Ex. D^4, 5].1 The proposed buyer, JEH Homes, LLC (“JEH Homes”), has offered the Debtor $90,000 per acre for the Property for a total purchase price of $1,446,147. JEH Homes proposes to turn the Property into a planned residential subdivision, razing the Airport and its facilities. The purchase price is the best offer Debtor has received in the last three and one-half years, although it is not sufficient to pay the two mortgages on the Property.2 Debtor be[832]*832lieves the offer represents the best price available for the sale of the Property and is in the best interest of the estate and its creditors.

Through the Motion, Debtor seeks entry of an order authorizing the sale of the Property free and clear of all liens, claims, encumbrances, and interests, and to disburse the sales proceeds as follows: 6% sales commission to Debtor’s Broker, customary closing costs, and then all net proceeds less a $35,000 “carve-out” for the bankruptcy estate, to Gwinnett Community Bank to the extent of its secured claim and the remainder, to the estate of Claudy Mathis. [Doc. No. 75]. Each of the individuals who have objected to the sale (the “Individual Objectors”), assert that they hold easements to use the Airport taxiways and runways and, argue that Debtor cannot sell the Property free of their interests. MARA objects to the sale to the extent that JEH Homes would use Mathis Air Park Road, the private road through the Subdivision3, without permission, burdening the residents of the Subdivision and trespassing on private property. [Doc. No. 77],

The parties agreed that all evidence submitted at each of the August 15 and 16 hearing, and the September 23 trial would be included in the record for the final hearing on the Motion held on October 15. The parties presented additional testimony and documentary evidence at the October 15 hearing.

This Court has jurisdiction to consider the Motion and the relief requested therein pursuant to 28 U.S.C. §§ 157 and 1334 and this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A) and (N). Venue is proper pursuant to 28 U.S.C. § 1409(a).

II. Facts

L.G. Mathis owned, in whole or in part, Mathis Airport until 1990 when he sold his remaining one-half interest to his brother C.J. Mathis. [Ex. F-ll, F-12]. During the early 1980’s, L.G. Mathis and Patrick McLaughlin began selling off lots in the Subdivision adjacent to the Airport. [Ex. F-16, 26; 0-8]. As more fully set forth in the Trial Order, Oliver Walter Propheter (“Propheter”) purchased property in the Subdivision in 1983, Richard Franck purchased property in the Subdivision in 2004 and 2005, Ken Franck bought property from Richard in 2005, and Debtor purchased a Subdivision lot and the Airport in 2004. [Ex. D-4; Ex. F-16, 23; FB-3, 7, 9].

In November, 2007, McLaughlin and L.G. Mathis deeded the private roads in the Subdivision to MARA. [Ex. FB-5; Ex. F-19]. MARA was incorporated approximately 21 days prior to receiving the quit claim deed (the “Quit Claim”) for the roads and was created for that purpose. See also, Trial Order at 7-8. At the time MARA accepted the Quit Claim there were two lis pendens regarding the litigation over the use of the Subdivision roads (the “Road Litigation”) of record. [Ex. D-8, 9]. MARA, through its President, Richard Franck, had actual knowledge of the Road Litigation at the time the Quit Claim was delivered. After twelve years of litigation in the Road Litigation and four days after MARA accepted the Quit Claim, a consent order was entered by the Superior Court of Forsyth County on November 28, 2007 (the “State Court Order”). [Ex. D-10; Ex. F-29] There is a county road, Mathis Airport Drive, which provides the general public access to the Airport. [833]*833Mathis Air Park Road begins on Mathis Airport Drive and ends in a cul-de-sac in the Subdivision. Mathis Air Park Road remains private. [Ex. 0-1; D-10, 12; F-29].

As discussed in the Trial Order, Richard Franck purchased property from Mus-grove and then purchased an additional half acre parcel of property from the executor of the Wilson estate. [Ex. 0-3; FB-3]. See Trial Order at 8. The half acre parcel was owned by “Pappy” Tate and then sold to Mr. Wilson, predecessor in title to Richard Franck and then, Ken Franck. [Ex. 0-2, 3], This parcel was combined with the Musgrove property and then subdivided into four lots. [Ex. FB-12], Lot # 4, which is now owned by Ken Franck, is made up of Musgrove property and the Wilson property and has a boundary on Mathis Air Park Road. [Ex 0-4; FB-7,12],

Exhibit 0-5, is a document titled “Addendum to Settlement Statement,” (the ‘Wilson Addendum”), which states:

As part of consideration of this purchase and sale, Seller agrees that Purchaser shall be allowed to join taxiways to airport taxiways of Mathis Airport and to have use of landing strip; and Purchaser agrees that they will not operate an aircraft repair service on subject property so long as an aircraft repair service is maintained at Mathis Airport.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
501 B.R. 828, 2013 WL 5775143, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-flyboy-aviation-properties-llc-ganb-2013.