Unaatuq, LLC v. Green (In re Catholic Bishop)

509 B.R. 229
CourtUnited States Bankruptcy Court, D. Alaska
DecidedMarch 31, 2014
DocketBankruptcy No. F08-00110-GS; Adversary No. F11-90002-GS
StatusPublished
Cited by1 cases

This text of 509 B.R. 229 (Unaatuq, LLC v. Green (In re Catholic Bishop)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unaatuq, LLC v. Green (In re Catholic Bishop), 509 B.R. 229 (Alaska 2014).

Opinion

[233]*233 MEMORANDUM ON MOTION TO ENFORCE JUDGMENT and MOTION FOR RULE 60(b) RELIEF

GARY SPRAKER, Bankruptcy Judge.

Plaintiff Unaatuq, LLC, has filed a Motion to Enforce Judgment and Related Orders (“Motion”). It seeks an order against the named defendants, Louis H. Green, Sr. and Nancy E. Green (“the Greens”), as well as the Greens’ two adult sons, Louis (Louie) Green, Jr. and Dewey (Stacey) Green, and Stacey’s wife, Mary Reader, compelling them to vacate real property it purchased within the main bankruptcy case.1 These individuals assert that they have acquired title, by adverse possession, in some or all of the Pilgrim Hot Springs property that Unaa-tuq purchased from the debtor in a free and clear sale by auction held in March 2010 in In re Catholic Bishop of Northern Alaska, Main Case No. F08-00110-GS (“the Main Case”). Louie Jr., Stacey, and Mary oppose Unaatuq’s Motion. Stacey and Mary have also filed a Request for Rule 60(b) Relief For the reasons stated below, Unaatuq’s Motion will be GRANTED, and the Request for Rule 60(b) Relief will be DENIED.

Background2

The debtor, Catholic Bishop of Northern Alaska (“CBNA”), filed a chapter 11 petition on March 1, 2008. At the time of filing, CBNA owned 320 acres of real property located on the Seward Peninsula, north of Nome, Alaska, known as Kruz-gamepa Hot Springs, Pilgrim Hot Springs, or the Pilgrim Springs Property (“the Property”). The Property was subject to a 99 year lease in favor of Pilgrim Springs, Ltd. (“PSL”). CBNA and PSL had entered the lease on November 1, 1969. Under the terms of the lease, CBNA granted PSL the exclusive right to possess and develop the Property. PSL was to pay a nominal amount of monthly rent to CBNA, but was to also pay CBNA a percentage of any gross revenues it received from certain development activities it planned to conduct on the Property.

During PSL’s tenancy, Louis Green, Sr. (“Louis Sr.”), and his family, lived on the Property for at least a portion of the time. Louis Sr. wrote to CBNA in September 1992, to “clarify the situation” regarding his family’s presence on the Property, and explain that PSL had asked him “and his family” to serve as caretakers of the Property from 1975 to the late 1980’s.3 The next month, CBNA wrote to its lessee, PSL, to express concern about the Greens’ presence on the Property and confirm that they were not squatters.4 CBNA indicated that, if the Greens were squatters, “it would be [PSL’s] responsibility as lease holder to procure the order [of eviction], [234]*234especially since you are the ones who invited them on in the first place.”5

PSL responded to CBNA in November 1992, expressly recognizing its status as a leasehold tenant. Regarding the Green family, it wrote that “they were our first caretakers,” the family had since broken up, but one of PSL’s former directors had given Annie Green permission to stay in a small house on the Property.6 PSL indicated that, if Annie’s presence on the Property “constitutes a squatter,” it would “effect a suit based upon trespass,” although it acknowledged having encouraged the farming operations.7 As to the rest of the Green family, PSL promised to “look into this further.”8

In December 1992, CBNA responded to PSL, writing:

As to the Green family, if one of your directors invited Annie Green to live on and help watch over the property after the Greens were no longer employed as caretakers, it seems to me that she and any others who visit her are guests of [PSL]. If she was not invited to remain on the property, or if that invitation has been ended, then she is a squatter and appropriate action should be taken. I will consider her your guest until you inform me that another decision has been taken.9

Sometime after this exchange of correspondence, Louis Sr. again became PSL’s caretaker. He signed receipts from sharecropper farming operations for 1998 and 1999 which reference “Sharecropper/Caretaker Agreement — Louie Green, Sr., and Pilgrim Springs, Ltd.”10 In correspondence dated September 29, 2006, to CBNA, PSL referred to “Louie Green” as its “man in the field.”11 CBNA filed its bankruptcy petition roughly 18 months later.

After filing its chapter 11 petition, CBNA moved to terminate the PSL lease and recover possession of the Property.12 From the time that this motion was filed, and throughout the versions of the plan and disclosure statement that it submitted, CBNA made clear its intention to sell the Property free and clear of liens and interests under 11 U.S.C. § 363(f). Louis Sr. was sent notice of CBNA’s motion to terminate the lease as PSL’s registered agent.13 The motion was granted on December 5, 2008.14 Three days before this order was entered, the Greens filed Proof of Claim No. 23 in the Main Case, as a general unsecured claim for $263,143.00. The claim was based upon “labor, equip[235]*235ment, operating and transportation cost in connection with carrying-out duties as care-takers and agents at Pilgrim Hot Springs” for PSL.15 The claim covered the time period from 1995 through 2008. Louis Sr. described his position as “caretaker, farmer, on-site Nome Agent for Pilgrim Spring Ltd.”16

After the PSL lease was terminated, the Greens sent an email to CBNA’s business manager, Thomas Buzek, with a proposal that Louis Sr. be permitted to stay on as a caretaker for the Property.17 Louis Sr. noted that he had been PSL’s caretaker from 1975 to 1985, and again from 1994 to the present, and offered to stay on for CBNA under the same terms he had with PSL — a non-salaried caretaker position. CBNA declined this proposal.18 When Mr. Buzek, visited the Property in mid-June of 2009, he asked Louis Sr. to remove any items that belonged to him from the Property.19 According to Stacey and Mary Green, Mr. Buzek also inquired whether they would consider paying rent to CBNA. Stacey and Mary “politely declined.” Shortly after Mr. Buzek’s visit, the Greens withdrew their proof of claim.

Roughly five months later, on November 30, 2009, the Greens filed an Opposition to the Sale of Pilgrim Hot Springs on Auction Block,20 When this document was filed, there was no pending motion to sell the Property, but a hearing to consider the adequacy of a Second Amended Disclosure Statement had been noticed to the matrix, which included Louis Sr. and Nancy Green, but did not include Louie Jr., Stacey, or Mary.21 The Disclosure Statement discussed CBNA’s plans to sell the Property, and its intention to wholly disallow any claims associated with the Property, including the Greens’ claim.22 In their Opposition, the Greens stated that CBNA’s representatives, in open meetings in Nome, had represented that the Property would not be sold. The Greens also said the proposed auction would hurt the local community.

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Bluebook (online)
509 B.R. 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unaatuq-llc-v-green-in-re-catholic-bishop-akb-2014.