Case No. 09-20450-WL.United States Bankruptcy Court, D. Maryland, (Greenbelt Division).
June 8, 2010
STIPULATION AND CONSENT ORDER GRANTING MOVANTS’ MOTION FOR RELIEF FROM THE AUTOMATIC STAY
WENDELIN LIPP, Bankruptcy Judge
Upon Consideration of the Stipulation and Consent Motion for Relief from the Automatic Stay (the “Motion”), and the parties having stipulated and consented to the
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entry of this Stipulation and Consent Order, and further the parties now being in agreement that:
1. Certain Creditors (Patricia Mastin-Moore, Estate of Vincent Tyrell Mastin, Sr., Vincent Mastin, Jr., Terrian Mastin, Major Linwood Scott and Francis Antwon Scott, hereinafter collectively referred to as “Creditors”) are seeking damages for personal injuries and wrongful death based on the alleged negligence of the Debtor related to an incident in which several individuals suffered gunshot wounds while allegedly on the alleged business premises operated by the Debtor and/or others on March 1st or March 2nd, 2009.
2. F.A.M.M., LLC is the Debtor in the underlying bankruptcy case.
3. That the Debtor filed a voluntary petition under Chapter 11 on June 9, 2009.
4. That on April 22, 2010 the Court converted the underlying bankruptcy case from a Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code.
5. That this Court does not have diversity jurisdiction and may not have subject matter jurisdiction with regard to the personal injury claims alleged by the named Creditors.
6. That on the date that the Creditors’ injuries arose, March 1, 2009 or March 2, 2009, the Debtor allegedly was insured by James River Insurance Company, A.I. Credit Corporation or its subsidiary AICCO, Inc. (hereinafter “AICCO”).
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7. That once the automatic stay is granted by this Court, the named Creditors will file a case for damages against the Debtor in state court or federal court.
8. That the named Creditors are not seeking any damages from the Chapter 11 bankruptcy estate, but rather are solely seeking damages from any applicable insurance policy up to any applicable policy limits.
9. That the above-noted circumstances constitute cause within the meaning of 11 U.S.C. 362(d)(1) for granting the Creditors’ request for relief from the automatic stay in order to permit such Creditors to exercise their remedies pursuant to non-bankruptcy law.
10. That cause also exist under 11 U.S.C 362(d)(2) to grant the Creditors relief from the automatic stay because any applicable insurance policy and proceeds are not necessary to an effective reorganization because the Court has converted the case to Chapter 7.
It is, by the United States Bankruptcy Court for the District of Maryland, hereby,
ORDERED, that the Stipulation and Consent Motion for Relief from the Automatic Stay is GRANTED upon the terms and conditions contained herein; and it is further
ORDERED, that the automatic stay of 11 U.S.C. 362(a) is immediately terminated pursuant to 11 U.S.C. 362(d)(1) and (d)(2) to permit the above-named Movants to exercise their non-bankruptcy rights and remedies against the Debtor in accordance with applicable non-bankruptcy law t to seekPage 4
damages against the Debtor to the extent of the applicable policy limits of any applicable insurance policy.
SO ORDERED.
Stan Brown, Esq., Law Office of Stan Derwin Brown, LLC, Largo, Maryland, Counsel for Movants.
John F.X. Costello, Esq., John F.X. Costello Associates, LLC, Largo, Maryland, Co-Counsel for Movants.
James R. Andersen, Esq., Rollins, Smalkin, Richards Mackie, LLC, Baltimore, Maryland, Attorney for Respondent DebtorF.A.M.M., LLC.
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Notice Recipients
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