In re Remington Park Owners Ass'n

548 B.R. 108, 2016 Bankr. LEXIS 933, 2016 WL 1176400
CourtUnited States Bankruptcy Court, E.D. Virginia
DecidedMarch 24, 2016
DocketCase No. 14-71894-FJS
StatusPublished
Cited by5 cases

This text of 548 B.R. 108 (In re Remington Park Owners Ass'n) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Remington Park Owners Ass'n, 548 B.R. 108, 2016 Bankr. LEXIS 933, 2016 WL 1176400 (Va. 2016).

Opinion

MEMORANDUM OPINION

FRANK J. SANTORO, United States Bankruptcy Judge

This matter comes before the Court on the Motion for Relief from Order Granting Assumption and Assignment of Contract to Infrastructure Management VA, LLC (the “Motion to Reconsider”) filed on behalf of Charter Communications VI, LLC (“Charter”) on February 27, 2015. The Motion to Reconsider requests relief from the Court’s order authorizing the chapter 7 trustee to assume and assign an executory contract pursuant to 11 U.S.C. § 365(a), entered on August 28, 2014. Remington Infrastructure Management, L.L.C. (“RIM”) and Infrastructure Management VA, LLC (“IVMA”) filed a joint objection to the Motion to Reconsider on March 13, 2015 (the “Objection”). On April 14, 2015, the Court convened a hearing on the Motion to Reconsider and the Objection, at which counsel for Charter, counsel for RIM and IVMA, counsel for Remington Park Owners Association, Inc., and the chapter 7 trustee appeared. At the hearing, the Court considered the arguments and evidence presented by the litigants. In lieu of closing arguments, the Court ordered the submission of briefs, summarizing the arguments and evidence presented at the hearing. See Transcript of April 14, 2015 Hearing at 112, ECF No. 40 (hereinafter “Tr.”); see generally Post-Trial Order Setting Briefing Schedule and Making Initial Findings of Fact, ECF No. 44. Charter, RIM and IVMA, and Remington Park Owners Association, Inc., filed post-hearing briefs with the Court.1

The Court has jurisdiction over this proceeding pursuant to 28 U.S.C. §§ 157(b) and 1334(b). Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409(a). This Memorandum Opinion constitutes the findings of fact and conclusions of law of this Court pursuant to Federal Rule of Civil Procedure 52, as incorporated into the Federal Rules of Bankruptcy Procedure by Rule 7052.

I. Procedural History

Remington Park Owners Association, Inc. (the “Debtor”) filed a voluntary petition under chapter 7 of the United States Bankruptcy Code on May 22, 2014. Clara P. Swanson was appointed chapter 7 trustee (the “Chapter 7 Trustee”).

On Schedule C — Executory Contracts and Unexpired Leases, filed contemporaneously with the voluntary petition, the Debtor described an executory contract between the Debtor and RIM entitled, “Agreement to Obtain Communications Services,” and dated January 10, [112]*11220072 See generally Charter’s Ex. 2, Agreement to Obtain Communication Services (hereinafter the “Communications Agreement”).

The Communications Agreement arranged for the provision of Communication Services3 to the residents of the Remington Park development in Suffolk, Virginia (the “Homeowners”). See Communications Agreement at 1, § 2.1. At all relevant times prior to the filing of the chapter 7 petition in this case, the Debtor engaged RIM as its exclusive agent to coordinate, manage, and monitor the provision of Communication Services to the Homeowners via a third-party service provider, and to coordinate the design, installation, and operation of the telecommunications infrastructure necessary to provide such services. See id. § 2.1. RIM provided this service in exchange for compensation to be included with the price of Basic Services (together, the “Service Fees for Basic Services”) paid by the Debtor, less a per residential dwelling unit processing fee remitted by RIM to the Debtor. Id. §§ 2.1, 2.5. The Debtor collected the Service Fees for Basic Services from the Homeowners with the Homeowners’ monthly assessments, pursuant to the terms of agreements between the Debtor and each of the Homeowners (each a “Homeowners Agreement” and, collectively, the “Homeowners Agreements”). Id. §§ 2.2.1, 3.1. RIM engaged Charter to be the initial third-party service provider of Communications Services by separate agreement with an effective date of July 24, 2008, under which' Charter agreed to provide bulk internet and video services to the Homeowners in exchange for a bulk billing fee paid solely by RIM.4 See Char-[113]*113tor's Ex. 1, Nonexclusive Installation and Service Agreement (Owner Prewire), Bulk Service Cable Addendum, and Internet Services Bulk Rate Addendum (collectively, hereinafter, the “Bulk Services Agreement”) at 9.5

On July 21, 2014, the Chapter 7 Trustee moved for authorization to assume and assign the Communications Agreement to IVMA pursuant to 11 U.S.C. § 365 in exchange for payment of $16,100.00 (the “Assignment Motion”).6 The Chapter 7 Trustee provided notice of the Assignment Motion to counsel for the Debtor, counsel for RIM and IMVA, and the Office of the United States Trustee. See Assignment Motion at 1-2. No other party received notice, and the record reflects that the Court did not direct that any other party receive notice. See Fed. R. Bankr.P. 6006(c). Having received no objections to the Assignment Motion and following the expiration of the notice period, the Court granted the requested relief by order entered August 28, 2014 (the “Assignment Order”).

Approximately six months after entry of the Assignment Order, Charter filed the Motion to Reconsider pursuant to Federal Rule of Civil Procedure 60, as incorporated into the Federal Rules of Bankruptcy Procedure by Rule 9024. See Motion to Reconsider at 1. The Motion to Reconsider does not clearly specify which subsection^) of Federal Rule of Civil Procedure 60 forms the basis for the relief sought by Charter, though it recites the majority of the substance of subsections (b)(l)-(3) and (6).7 See id. ¶ 18. In support of its re[114]*114quest for relief from the Assignment Order, Charter alleges that neither Charter nor the Homeowners were served with notice of the Assignment Motion, which “materially affect[ed] their rights and interests,” see id. ¶ 6, and deprived Charter and the Homeowners of due process, see id. ¶ 19.

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Bluebook (online)
548 B.R. 108, 2016 Bankr. LEXIS 933, 2016 WL 1176400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-remington-park-owners-assn-vaeb-2016.