Home/Sixth Circuit/Jefferson Cnty v. Voinovich

Jefferson Cnty v. Voinovich

Bankruptcy Appellate Panel of the Sixth Circuit·Decided May 1, 2003·No. 02-8051·Published

Opinion

(/(&7521,&&,7$7,21)('$SS3 WK&LU

)LOH1DPHES

%$1.5837&<$33(//$7(3$1(/2)7+(6,;7+&,5&8,7

,QUH 7+(9&203$1,(6HWDO

'HEWRUV

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB s())(5621&2817<%2$5'2)&2817< &200,66,21(56 9,5*,/(%52:175867((

3ODLQWLIIV$SSHOOHHV

Y 1R &+5,67,1($92,129,&+'(%25$+ 92,129,&+0F&$113$8/0 92,129,&+92&21'(6,*1,1&

'HIHQGDQWV$SSHOODQWV

BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $SSHDOIURPWKH8QLWHG6WDWHV%DQNUXSWF\&RXUW IRUWKH1RUWKHUQ'LVWULFWRI2KLRDW&OHYHODQG 1R$GY1R

$UJXHG0DUFK

'HFLGHGDQG)LOHG0D\

%HIRUH$8*+2:$5'DQG/$77$%DQNUXSWF\$SSHOODWH3DQHOsXGJHV

BBBBBBBBBBBBBBBBBBBB

&2816(/

$5*8('0LFKDHO'=DYHUWRQ%(1(6&+)5,('/$1'(5&23/$1 $5212)) &OHYHODQG2KLRIRU$SSHOODQWV$ODQ5/HSHQH7+203621+,1(&OHYHODQG2KLRIRU $SSHOOHHV21%5,()0LFKDHO'=DYHUWRQ%(1(6&+)5,('/$1'(5&23/$1 $5212)) &OHYHODQG 2KLR IRU $SSHOODQWV  $ODQ 5 /HSHQH 7+203621 +,1( &OHYHODQG2KLRIRU$SSHOOHHV



BBBBBBBBBBBBBBBBBBBB

23,1,21

BBBBBBBBBBBBBBBBBBBB

:,//,$06+2:$5'%DQNUXSWF\$SSHOODWH3DQHOsXGJH$SSHOODQWV&KULVWLQH $ 9RLQRYLFK 'HERUDK 9RLQRYLFK 0F&DQQ 3DXO 0 9RLQRYLFK DQG 9RFRQ 'HVLJQ ,QF DSSHDOWKHRUGHURIWKHEDQNUXSWF\FRXUWGHQ\LQJWKHLUPRWLRQWRGLVPLVVDQDGYHUVDU\ SURFHHGLQJILOHGDJDLQVWWKHPE\WKHsHIIHUVRQ&RXQW\%RDUGRI&RXQW\&RPPLVVLRQHUV mWKH%RDUGl 7KHEDQNUXSWF\FRXUWjVRUGHUDOVRVXEVWLWXWHG9LUJLO(%URZQWKH&KDSWHU 7UXVWHH mWKH7UXVWHHl DVWKHSODLQWLIILQWKHDGYHUVDU\SURFHHGLQJ)RUWKHUHDVRQVVHW RXWEHORZZH$)),50WKHEDQNUXSWF\FRXUWjVGHFLVLRQ

,,668(21$33($/

7KHLVVXHEHIRUHWKH3DQHOLVZKHWKHUWKHEDQNUXSWF\FRXUWHUUHGDVDPDWWHURIODZ LQGHWHUPLQLQJWKDWWKH%RDUGKDGGHULYDWLYHVWDQGLQJWRSXUVXHDYRLGDQFHDFWLRQVDJDLQVW WKH$SSHOODQWV,QGHFLGLQJWKDWLVVXHWKH3DQHOPXVWVSHFLILFDOO\FRQVLGHUZKHWKHUWKH 6L[WK&LUFXLWFDVHRI&DQDGLDQ3DF)RUHVW3URGV/WGYs',UYLQJ/WG ,QUH*LEVRQ *URXS,QF )G WK&LU LVHIIHFWLYHO\RYHUUXOHGE\WKH6XSUHPH&RXUW FDVHRI+DUWIRUG8QGHUZULWHUV,QV&RY8QLRQ3ODQWHUV%DQN1$866 &W   7KH $SSHOODQWV DOVR FRQWHQG WKDW WKH EDQNUXSWF\ FRXUW HUUHG LQ VXEVWLWXWLQJ WKH 7UXVWHH DV SODLQWLII LQ WKH DGYHUVDU\ SURFHHGLQJ  7KHLU SRVLWLRQ ZDV EDVHG RQ WKHLU FRQWHQWLRQWKDWWKH7UXVWHHFRXOGQRWEHVXEVWLWXWHGIRUDSDUW\ZKRVHVWDQGLQJWRVXHZDV JUDQWHGLQHUURU,QOLJKWRIRXUGHFLVLRQFRQFHUQLQJWKHLVVXHRIGHULYDWLYHVWDQGLQJZH QHHGQRWDGGUHVVWKLVLVVXH

,,s85,6',&7,21$1'67$1'$5'2)5(9,(:

7KH%DQNUXSWF\$SSHOODWH3DQHORIWKH6L[WK&LUFXLWKDVMXULVGLFWLRQWRGHFLGHWKLV DSSHDO7KH8QLWHG6WDWHV'LVWULFW&RXUWIRUWKH1RUWKHUQ'LVWULFWRI2KLRKDVDXWKRUL]HG DSSHDOVWRWKH%$37KHmILQDORUGHUlRIDEDQNUXSWF\FRXUWPD\EHDSSHDOHGE\ULJKW XQGHU  86& †  D    )RU SXUSRVHV RI DSSHDO DQ RUGHU LV ILQDO LI LW mHQGV WKH 

OLWLJDWLRQRQWKHPHULWVDQGOHDYHVQRWKLQJIRUWKHFRXUWVWRGREXWH[HFXWHWKHMXGJPHQWl 0LGODQG$VSKDOW&RUSY8QLWHG6WDWHV866&W 

LQWHUQDOTXRWDWLRQVDQGFLWDWLRQVRPLWWHG 7KHGHQLDORIDPRWLRQWRGLVPLVVLVQRWDILQDO RUGHU$UFKLHY/DQLHU)G WK&LU .HOO\+RZH 6FRWWY*LJXHUH ,QUH*LJXHUH %5 '5, +RZHYHUWKHSDQHOPD\JUDQWOHDYHWR DSSHDODEVHQWDPRWLRQIRUOHDYHWRDSSHDOLIDQRWLFHRIDSSHDOLVWLPHO\ILOHG6HH8QLWHG 6WDWHVY(JJOHVWRQ:RUNV/RXGVSHDNHU&R ,QUH(JJOHVWRQ:RUNV/RXGVSHDNHU&R   %5   %$3 WK &LU    7KH 3DQHO JUDQWHG OHDYH WR DSSHDO RQ 'HFHPEHU &RQFOXVLRQV RI ODZ DUH UHYLHZHG GH QRYR  6HH 1LFKROVRQ Y ,VDDFPDQ ,Q UH ,VDDFPDQ )G WK&LU m'HQRYRUHYLHZUHTXLUHVWKH3DQHOWRUHYLHZ TXHVWLRQV RI ODZ LQGHSHQGHQW RI WKH EDQNUXSWF\ FRXUWjV GHWHUPLQDWLRQl  )LUVW 8QLRQ 0RUWJDJH&RUSY(XEDQNV ,QUH(XEDQNV %5 %$3WK&LU

FLWDWLRQRPLWWHG 

,,,)$&76

7KH $SSHOODQWV &KULVWLQH $ 9RLQRYLFK 'HERUDK 9RLQRYLFK 0F&DQQ 3DXO 0 9RLQRYLFKDQG9RFRQ'HVLJQ,QFDUHDOORIILFHUVGLUHFWRUVLQVLGHUVRI7KH9&RPSDQLHV ,QFDQG96$UFKLWHFWV,QFWKH'HEWRUVLQWKLVFDVHDQGDUHVRPHRIWKHGHIHQGDQWVLQ WKHDERYHUHIHUHQFHGDGYHUVDU\SURFHHGLQJ7KH'HEWRUVZHUHLQYROYHGLQFRQVWUXFWLRQ DQGSURMHFWPDQDJHPHQWEXVLQHVVHV,QDSULRURSLQLRQDSSURYLQJWKHFRQYHUVLRQRIWKH 'HEWRUVjFDVHVWRFDVHVXQGHUFKDSWHUWKHEDQNUXSWF\FRXUWJDYHDQLQGHSWKGHVFULSWLRQ RIWKHUHODWLRQVKLSVEHWZHHQWKH'HEWRUVDQGWKHLUYDULRXVDIILOLDWHVRIILFHUVGLUHFWRUVDQG VKDUHKROGHUVLQFOXGLQJWKH$SSHOODQWV6HH,QUH9&RPSDQLHV%5 %DQNU1' 2KLR    7KH 'HEWRUV DUH FRQWUROOHG E\ 3DXO 9 9RLQRYLFK ZKR LV WKH VSRXVH RI $SSHOODQW&KULVWLQH$9RLQRYLFKDQGWKHIDWKHURI$SSHOODQWV'HERUDK9RLQRYLFK0F&DQQ DQG3DXO09RLQRYLFK)XUWKHU&KULVWLQH$9RLQRYLFKLVWKHVROHVKDUHKROGHURI$SSHOODQW 9RFRQ'HVLJQ,QFZKLFKLVRSHUDWHGE\KHUFKLOGUHQ'HERUDK9RLQRYLFK0F&DQQDQG 3DXO09RLQRYLFK,GDW



7KHEDQNUXSWF\FDVHV MRLQWO\DGPLQLVWHUHG ZHUHRULJLQDOO\ILOHGXQGHU&KDSWHU RQsDQXDU\7KH'HEWRUVRSHUDWHGWKHFRPSDQLHVDVGHEWRUVLQSRVVHVVLRQIRU RYHUWZR\HDUV2Q0D\WKH867UXVWHHILOHGDPRWLRQWRFRQYHUWWR&KDSWHU :KLOH WKH PRWLRQ ZDV SHQGLQJ WKH %RDUG VRXJKW OHDYH RI FRXUW WR SXUVXH DYRLGDQFH DFWLRQVIRUWKHEHQHILWRIWKH'HEWRUVjHVWDWHV'XULQJWKHFRXUVHRIWKHFDVHWKH%RDUG UHTXHVWHGWKDWWKH'HEWRUVILOHDGYHUVDU\DFWLRQVDJDLQVWVHYHUDOLQGLYLGXDOVDQGHQWLWLHV WRUHFRYHUDOOHJHGO\IUDXGXOHQWDQGSUHIHUHQWLDOWUDQVIHUV7KH%RDUGDVVHUWHGWKDWYDULRXV RIILFHUVGLUHFWRUVVKDUHKROGHUVDQGLQVLGHUVRIWKH'HEWRUVLQFOXGLQJWKH$SSHOODQWVKDG HQJDJHGLQSUDFWLFHVWKDWUHVXOWHGLQWKH'HEWRUVjLQVROYHQF\DQGEDQNUXSWF\ 7KHVHDOOHJHGSUDFWLFHVLQFOXGHRUJDQL]LQJDQGRSHUDWLQJFRPSHWLQJFRPSDQLHV GLYHUWLQJ'HEWRUVjDVVHWVWRRWKHUDIILOLDWHVVHOOLQJSURSHUW\LQZKLFKWKH'HEWRUVKDGDQ LQWHUHVWZLWKRXWDFFRXQWLQJIRUWKH'HEWRUVjLQWHUHVWVDQGRWKHUXQODZIXOSUDFWLFHVWRWKH GHWULPHQWRIWKH'HEWRUVjHVWDWHV7KH'HEWRUVUHIXVHGWRILOHDQ\DYRLGDQFHDFWLRQV$IWHU D KHDULQJ RQ sDQXDU\   WKH EDQNUXSWF\ FRXUW JUDQWHG WKH %RDUG OHDYH WR ILOH D FRPSODLQWDJDLQVWWKH$SSHOODQWVDQGRWKHUVZLWKLQWKHWZR\HDUOLPLWDWLRQVSHULRGVHWRXW LQ86&†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



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

Jefferson Cnty v. Voinovich, (bap6 2003).

Jefferson Cnty v. Voinovich (Jefferson Cnty v. Voinovich) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.