In re MJS Las Croabas Properties, Inc.

530 B.R. 25, 2015 Bankr. LEXIS 793, 2015 WL 1216772
CourtUnited States Bankruptcy Court, D. Puerto Rico
DecidedMarch 13, 2015
DocketCASE NO. 12-5710 (ESL)
StatusPublished
Cited by5 cases

This text of 530 B.R. 25 (In re MJS Las Croabas Properties, Inc.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re MJS Las Croabas Properties, Inc., 530 B.R. 25, 2015 Bankr. LEXIS 793, 2015 WL 1216772 (prb 2015).

Opinion

[29]*29 OPINION AND ORDER

Enrique S. Lamoutte, United States Bankruptcy Judge

This case is before the court upon the Response to HOA’s Motion Withdrawing Document and to Vacate Hearing filed by the Federal Deposit Insurance Corp. (“FDIC”) (Docket No. 491) and the Motion Joining FDIC-R’s Response to HOA’s ‘Motion Withdrawing Document and to Vacate Hearing” and FDIC-R’s Request for Sanctions (Docket No. 497) filed by the Chapter 7 Trustee (the “Trustee”). The FDIC and the Trustee seek sanctions against the Homeowners Association of Ocean Club at Seven Seas (“HOA”) and its legal counsels for withdrawing the Motion for Relief from Automatic Stay under 11 U.S.C. § 362 (Docket No. 472) on September 8, 2014 at 4:51 p.m., that is, on the eve of the hearing scheduled for September 9, 2014. Also before the court is the Opposition to Request for Sanctions (Docket No. 508) filed by the HOA. For the reasons stated herein, the request for sanctions is hereby granted in part and denied in part.

Factual and Procedural Background

The Debtor filed a Chapter 11 voluntary petition on July 19, 2012. See Docket No. 1. On September 13, 2012, the case was converted to Chapter 7. See Docket No. 351.

On August 14, 2014, HOA filed a Motion for Relief from Automatic Stay under 11 U.S.C. § 362 (the “Motion for Relief from Stay) “in order to pursue a cause of action against the debtor for all construction defects of the development ... to be presented before the Department of Consumer Affairs of the Commonwealth of Puerto Rico. According to the law and the applicable caselaw, the Department of Consumer Affairs (DACO by its initials in Spanish) has primary jurisdiction over the aforementioned case or controversy” (Docket No. 472, p. 4). The Motion was filed by HOA’s legal counsel, Ms. Anabelle Qui-ñones Rodríguez (USDC-PR 219908) from the Castellanos Law Group Firm L.L.C.1 (“Castellanos Law Firm”), through the Case Management/Electronic Case Filing system (“CM7ECF”)2; Her email of record, as it appears on the electronic signature of said Motion, is anabelle@cglawpr. com and the telephone number of the Cas-tellanos Law Firm, as disclosed therein, is 787-641-8447. See Docket No. 472, p. 5.

On August 15, 2014, the court issued summons scheduling a hearing to consider the HOA’s Motion for Relief from Stay for September 9, 2014 at 9:00 AM. See Docket Nos. 472-3 and 474.

On August 19, 20, and 21, ,2014, the FDIC’s local counsel, Toro, Colón, Mullet, Rivera & Sifre, P.S.C., telephoned the HOA’s legal counsels’ office, to wit, the Castellanos Law Firm, at their phone number of record,. 787-641-8447, at 6:16 p.m., 2:34 p.m., and 2:02 p.m., respectively. See Docket No. 521-2, Exhibit 2, p. 3.

On August 27, 2014, the FDIC filed a Motion for Extension of Time to reply to HOA’s Motion for Relief from Automatic Stay stating as follows:

In a genuine, honest, and good faith effort to resolve concerns regarding several potential procedural and sub[30]*30stantive defects inflicting the Motion for Relief, the FDIC-R has attempted — on numerous occasions — to speak with HOA Ocean Club’s counsel. Specifically, the FDIC-R’s undersigned counsel [Mr. Manuel Fernández Bared and Mr. Brian M. Dick-Biascoechea] called HOA Ocean Club’s counsel last week, this past Monday, and Tuesday. Several emails were also sent in the course of the last two weeks. However, HOA’ Ocean Club’s counsel has not responded to any of these communications.
The FDIC-R prefers to resolve its con-, cerns without having to object to the Motion for Relief, so in view of the above, respectfully requests a very modest extension of seven (7) calendar days, through Thursday, September 4, 2014, to make a final .effort to speak with HOA Ocean Club’s counsel, or, if necessary, otherwise prepare and file its response to the Motion for Relief.
Docket No. 479, p. 1, ¶¶ 2-3.

On August 28, 2014, Trigild Incorporated (“Trigild”)3 filed a Motion for Extension of Time (Docket No. 480) joining the FDIC’s Motion for Extension of Time.

On August 29, 2014, the FDIC’s local counsel, Mr. Brian M. Dick-Biascoechea, telephoned the Castellanos Law Firm at 3:53 p.m. (Docket No. 521-2, Exhibit 2, p. 3, and Docket No. 521-3, p. 1, ¶ 7), and at 4:51 p.m. wrote an email to Ms. Anabelle Quinones Rodriguez as follows:

From: Brian M. Dick-Biascoechea
Sent: Friday, August 29, 2014 4:51 PM
To: ‘anabelle@cglawpr.com’
Cc: Manuel Fernandez Bared; Jeffrey (jsandell@FDIC.gov)
Subject: In re MJS Las CroabasMotion for Relief from Stay
Hello Ms. Quiñones-Rodríguez:
My name is Brian Dick Biascoechea, I represent the FDIC as receiver for Westernbank in the case of MJS las Croabas, developer of the residential project known as Ocean Club at Seven Seas. I would like to speak with you as soon as possible concerning your client’s request from relief from stay. I called your office but was unable to reach you. Brother counsel Manuel Fernández Bared has also tried contacting you on several occasions since you filed the motion for stay relief, to no avail.
Undeniably, all parties, as well as the Court, will benefit from a discussion of your client’s objectives and your understanding of the law in this matter. It is in all our interests to dissipate any disagreements regarding your request before the FDIC, Trigild and the Trustee contest your motion next week. Per our motion for extension of time filed on August 27, 2014, the Court is already aware that we are trying to contact you for these purposes.
Let us know what time we can speak, or, simply give me a call using the contact information below.
Best wishes,
Brian M. Dick-Biascoechea
Docket No. 521-4, Exhibit 4, p. 1.

[31]*31On August 29, 2014, the Trustee filed a Motion for Extension of Time... (Docket No. 481) requesting nine (9) days to file an opposition to HOA’s Motion for Relief from Stay.

The HOA did not reply or object to any of the aforementioned motions for extension of time by the FDIC, Trigild and the Trustee. Hence, on September 2, 2014, the court entered three (3) separate Orders granting the extensions of time sought by each party. See Docket Nos. 482, 483 and 484.

On September 3, 2014, Trigild’s legal counsel, Ms. Wilnerys Alvarez Rivera, from Mellado & Mellado-Villareal, wrote an email to HOA’s legal counsel, Ms. Ana-belle Quinones Rodriguez, as follows:

From: Wilnerys Alvarez Rivera
Sent: Wednesday, September 03, 2014 6:54 PM
To: anabelle@cglawpr.com
Ce: Jairo Mellado

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Cite This Page — Counsel Stack

Bluebook (online)
530 B.R. 25, 2015 Bankr. LEXIS 793, 2015 WL 1216772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mjs-las-croabas-properties-inc-prb-2015.