In Re Interstate Distribution Center Associates (A), Ltd.

137 B.R. 826
CourtUnited States Bankruptcy Court, D. Colorado
DecidedApril 15, 1992
Docket19-10762
StatusPublished
Cited by8 cases

This text of 137 B.R. 826 (In Re Interstate Distribution Center Associates (A), Ltd.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Interstate Distribution Center Associates (A), Ltd., 137 B.R. 826 (Colo. 1992).

Opinion

MEMORANDUM OPINION AND ORDER

SIDNEY B. BROOKS, Bankruptcy Judge.

THIS MATTER came before the Court on numerous related pleadings. 1

*827 The Court, having reviewed the file, conducted a hearing, considered the supplemental documentation presented, and being advised in the premises, makes the following findings of fact, conclusions of law, and order.

Briefly, this Court has reviewed the pending motions and applications, as well as the supplemental disclosures of the numerous and pervasive relationships between and among the Debtor, entities related to the Debtor, Debtor’s predecessor secured creditor, and Brownstein Hyatt Far-ber & Madden (now Brownstein Hyatt Far-ber & Strickland, herein “Brownstein Hyatt”). This Court concludes that Brown-stein Hyatt is precluded from being employed under 11 U.S.C. § 362(e) for several reasons set forth hereinbelow.

I. BACKGROUND.

Although the discussion of background material and the relationships among counsel and numerous entities is complex and circular, this Court will synthesize and state the elaborate factual setting as follows.

A. The Debtor.

Interstate Distribution Center Associates (A), Ltd. (“IDCA(A)” or the “Debtor”) is one of several thousand partnerships across the country that do business under the name Trammell Crow Company (the “Trammell Crow Company Entities”). Approximately 120 Trammell Crow Company Entities either own property or do business in the State of Colorado. Although the Trammell Crow Company Entities have been permitted to conduct business throughout the United States and abroad for some 40 years, only in 1990 was a Texas close corporation formed with the name Trammell Crow Company. 2

The Debtor has one limited partner, Lowell M. McKanna (Trustee), and one general partner, Crow-Watson # 9, Ltd., a Texas limited partnership formed in 1982. Crow-Watson # 9, Ltd., in turn, has several limited partners 3 and five general partners, J. McDonald Williams, Trammell Crow Foundation, Ltd., Joel C. Peterson, J. McDonald Williams (as nominee), and Gary D. Shafer 4 J. McDonald Williams, Joel C. Peterson, Gary D. Shafer, Robert J. Watson, 5 Norman L. Bledsoe, 6 and Harlan R. Crow 7 jointly and severally guarantee 50% of a 1984 loan secured by the Debtor’s real property (the “1984 Loan”). 8 The 1984 Loan was, initially, an obligation of Inter *828 state Distribution Associates, Ltd., 9 which was, by amendment, assumed by the Debt- or IDCA(A).

B. The Representation.

Brownstein Hyatt’s previous and current relationship 10 with the Debtor and parties related to the Debtor may be summarized as follows:

1. The Debtor.
a. Brownstein Hyatt formed the Debtor IDCA(A) on behalf of the Tram-mell Crow Company Entities; 11
b. Lynda A. McNeive of Brownstein, Hyatt serves as chief business counsel for the Debtor IDCA(A); and
c. Robert Nichols of Brownstein Hyatt currently represents the Debtor IDCA(A) in communications with the Environmental Protection Agency regarding contamination on neighboring parcels of real property.
2. The Sole Limited Partner of the Debtor.
Brownstein Hyatt has not represented the sole limited partner of the Debtor IDCA(A), Lowell M. McKanna.
3. The Sole General Partner of the Debtor, Crow-Watson #9, Ltd.
Brownstein Hyatt maintains that the firm has represented Crow-Watson # 9 as follows:
a. Formation of IDCA and the Debtor IDCA(A);
b. Purchase of the properties owned by IDCA 12 and the Debtor IDCA(A);
c. Acquisition, development and/or permanent financing for the properties owned by IDCA 13 and the Debtor IDCA(A);
d. Modifications or workouts of these loans; 14
e. Advice concerning lease provisions and other tenant issues;
f. Investigations and advice concerning potential Superfund liability and negotiations with the Environmental Protection Agency and adjacent landowners regarding environmental cléanup; and
g. Filing of the Debtor’s bankruptcy Petition.
4. General and Limited Partners of Crow-Watson #9, Ltd.
Brownstein Hyatt has represented the general and limited partners of Crow-Watson # 9, Ltd. on matters relating to Trammell Crow Company Entities, only, and not on any separate matters, and only under the direction of the Denver Area Office. 15
5. Guarantors of the 1984 Loan.
Brownstein Hyatt’s representation of Mr. Watson and Mr. Bledsoe (in addition to Messrs. Williams, Peterson, and Shafer who also fall into the category above) is as described below.
6. Trammell Crow Entities, In General.
a. On certain occasions, such as with IDCA 16 and the Debtor IDCA(A), Brownstein Hyatt has formed Colorado limited partnerships or corporations at the direction of the Denver Area Office on behalf of Trammell Crow Company Entities;
b. On behalf of individual partners in Trammell Crow Company Entities, Brownstein Hyatt has occasionally filed pleadings at the request of the Denver Area Office in cases where the partner was named in a suit by reason of his/her *829 relationship with a Trammell Crow Company Entity;
c. Additionally, Brownstein Hyatt has sometimes prepared or reviewed documents for individual partners on personal matters unrelated to their association with a Trammell Crow Company Entity, such as home purchase contracts or wills; and
d.

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Cite This Page — Counsel Stack

Bluebook (online)
137 B.R. 826, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-interstate-distribution-center-associates-a-ltd-cob-1992.