Whitaker v. Annamalai (In re Hindu Temple & Community Center of Georgia, Inc.)

502 B.R. 881, 2013 WL 6571171
CourtUnited States Bankruptcy Court, N.D. Georgia
DecidedAugust 30, 2013
DocketNo. 09-82915
StatusPublished
Cited by3 cases

This text of 502 B.R. 881 (Whitaker v. Annamalai (In re Hindu Temple & Community Center of Georgia, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitaker v. Annamalai (In re Hindu Temple & Community Center of Georgia, Inc.), 502 B.R. 881, 2013 WL 6571171 (Ga. 2013).

Opinion

ORDER GRANTING MOTION TO HOLD ANNAMALAI ANNAMALAI IN CONTEMPT FOR VIOLATION OF THE BARTON DOCTRINE

JAMES E. MASSEY, Bankruptcy Judge.

On August 9, 2013, Lloyd T. Whitaker, the Chapter 11 Trustee in this case, filed a motion to hold Annamalai Annamalai in contempt and to impose other sanctions, Doc. No. 414 (the “Contempt Motion”) for an alleged willful violation of the Barton doctrine by Mr. Annamalai for filing on July 29, 2013 a complaint in the U.S. District Court for the Southern District of Ohio in Case No. 2:13CV00747 (the “Ohio Federal Action”) against a professional employed by the Trustee in this case and against wives of the Trustee and two professionals representing the Trustee.1 [883]*883The sanctions sought by the Trustee against Mr. Annamalai include injunctive relief in the form of ordering Mr. Annama-lai to dismiss with prejudice the Ohio Federal Action against the wives of the Trustee and his professionals and against the attorney employed by the Trustee, a monetary sanction for contempt measured at the rate of $1,000 per day from the date of the filing of the Ohio Federal Action to the date it is dismissed with prejudice, and an award of attorney’s fees.

The Trustee filed a separate motion for an expedited hearing on the Contempt Motion, which the Court granted in an order and notice entered on August 9, 2013. That order scheduled a hearing on the Contempt Motion for August 20, 2013. The Trustee filed a separate certificate of service of the Contempt Motion describing service on Mr. Annamalai in a manner permitted by Bankruptcy Rule 7004. A certificate of service of the order and notice of the August 20 hearing filed August 11, 2013 shows service of that order and notice on Mr. Annamalai by mail on that date.

Prior to filing the Contempt Motion, the Trustee filed two other motions seeking approval of compromises and scheduled the hearings on those motions for August 20, 2013.

On August 15, 2013, Mr. Annamalai filed in Adversary Proceeding No. 09-9080, which proceeding is a part of this Chapter 11 case, a motion for a stay of hearings to be held on August 20, 2013. In the first paragraph of his motion for a stay, Mr. Annamalai acknowledged that the hearing on the Contempt Motion and two other motions was to be held on August 20. Emergency Motion for Stay Pending Appeal, Doc. No. 467 in A.P. No. 09-9080, p. 1. He was thus aware of the scheduling of the August 20 hearing on the Contempt Motion. The Court denied his motion for a stay.

Mr. Annamalai filed a response to the Contempt Motion on August 19, 2013 in which he contends that the Barton doctrine is inapplicable to the Ohio Federal Action.

The Court held a hearing on the Contempt Motion on August 20, 2013. Mr. Annamalai did not appear at that hearing. At the hearing, the Court heard testimony of Lloyd T. Whitaker, the Chapter 11 Trustee, and his attorney, Hayden Kepner, whose statements were made in his place as an attorney and officer of the Court.

A. Prior Proceedings.2

The Hindu Temple and Community Center of Georgia, Inc. (the “Debtor”) filed on August 31, 2009 a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code under Case No. 09-82915. Respondent Mr. Annamalai An-namalai as the “Chairman” of the Debtor signed an application to employ its counsel. That attorney withdrew in the spring of 2010, and the Debtor remains unrepresented.

[884]*884On the oral motion of the United States Trustee at a hearing on November 2, 2009, the Court ordered the appointment of a trustee in this case. The United States Trustee appointed Lloyd T. Whitaker as the Chapter 11 Trustee on November 4, 2009, and Mr. Whitaker has served continuously in that capacity since that date. With court approval, Mr. Whitaker employed as his primary counsel the firm of Scroggins and Williamson, P.C. in which Hayden Kepner is a member. Mr. Kepner has served as the lead attorney for the Trustee in this case.

On November 9, 2009, the Trustee filed a complaint commencing Adversary Proceeding No. 09-9080 against Mr. Annama-lai, a number of individuals associated with him, and one corporate entity controlled by Mr. Annamalai. The complaint was subsequently amended to drop certain defendants and to add new defendants, including several other corporate entities controlled by Mr. Annamalai, one of which is Paru Selvam, LLC. The complaint as amended contained several counts against various defendants, including counts for avoidance and recovery of fraudulent transfers made by the Debtor to Mr. An-namalai and a count based on the alter ego doctrine. In the alter ego count, the Trustee alleged that Mr. Annamalai was the alter ego of the Debtor and that two other corporate defendants, including Paru Sel-vam, LLC, were his alter egos, making all of them liable for the debts of the Debtor. After more than two years of litigation, the Court conducted a trial in the Adversary Proceeding in July 2012.

A few weeks later, in late August of 2012, Mr. Annamalai and others filed a complaint in the United States District Court for the Northern District of Georgia in Civil Action File No. 1:12-CV-2941 (the “Georgia Federal Action”) against approximately twenty-five individuals, including the Trustee, the Trustee’s financial advis- or, an auctioneer employed by the Trustee and Mr. Kepner. The complaint alleges that the defendants were part of a criminal conspiracy to deny Mr. Annamalai rights under the U.S. Constitution in violation of state and federal RICO statutes. The bulk of the allegations against the Trustee and his professionals involved acts authorized by orders of this Court that were final and not subject to appeal, such as an order lifting the automatic stay to permit a secured lender to foreclose on real property owned by the Debtor.

Also in August of 2012, Mr. Annamalai filed in the Common Pleas Court of Montgomery County, Ohio, Civil Division, in Case No. 2012 CV 02619 (the “Ohio State Court Action”) an amended complaint, entitled “Plaintiff Annamalai Annamalai’s Amended Complaint,” adding as defendants Mr. Kepner and Robert Williamson, also a member of Scroggins and Williamson, P.C. In this action Mr. Annamalai sought judgments against Messrs. Kepner and Williamson on the theory that they, along with other defendants, had defamed Mr. Annamalai, had engaged in fraudulent conduct and were part of a civil conspiracy to injure Mr. Annamalai.

On September 6, 2012, the Trustee filed an emergency motion in this Chapter 11 case asking the Court to hold Mr. Annam-alai and others in contempt and to impose sanctions on those respondents for violating the Barton doctrine by filing the complaints in the Georgia Federal Action and the Ohio State Court Action. On September 12, 2012, this Court entered an order grating that motion for contempt, holding that the filing of those complaints against the Trustee, Mr. Kepner and the Trustee’s other court-approved professionals violated the Barton doctrine and directing Mr. An-namalai and other plaintiffs to dismiss [885]*885those complaints against the Trustee, Mr. Kepner, and the Trustee’s other professionals. The Court reserved a ruling on sanctions. Mr. Annamalai partially complied with the Court’s order by dismissing or attempting to dismiss those complaints as to the Trustee and his professionals.

Later in September 2012, this Court entered in the Adversary Proceeding a partial judgment against Mr.

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Related

Whitaker v. Paru Selvam, L.L.C.
2014 Ohio 3263 (Ohio Court of Appeals, 2014)

Cite This Page — Counsel Stack

Bluebook (online)
502 B.R. 881, 2013 WL 6571171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitaker-v-annamalai-in-re-hindu-temple-community-center-of-georgia-ganb-2013.