Adversary Proceeding No. 10-592.United States Bankruptcy Court, D. Maryland, Greenbelt Division.
November 8, 2010
FIRST STIPULATION AND CONSENT ORDER RELEASING FUNDS HELD BY PLAINTIFF
THOMAS CATLIOTA, Bankruptcy Judge
WHEREAS Plaintiff commenced this Interpleader action pursuant to Maryland Rule Civ. P. 2-221, seeking a judicial determination as to which defendant(s) may be entitled to certain funds received by Plaintiff in July of 2006;
WHEREAS, on July 30, 2010, the Trustee for the estate of Financial Mortgage, Inc. (bankruptcy case no. 08-13287-SSM), filed a Notice of Removal and the case was removed from the Circuit Court for Montgomery County, Maryland, without objection, just prior to the deposit
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of the interpled funds (defined below as the “Escrowed Funds”) by the Plaintiff into the Montgomery County Circuit Court registry;
WHEREAS Plaintiff is holding in escrow the sum of $636,000.00 (“Escrowed Funds”); and
WHEREAS the parties, as evidenced by the endorsement of their counsel hereto, have reached an agreement concerning the distribution of a portion of the Escrowed Funds, as set forth below, it is hereby ORDERED:
1. $593,949.80 of the Escrowed Funds are property of the bankruptcy estate of Financial Mortgage, Inc. and shall be released by the Plaintiff to H. Jason Gold, as Trustee for the chapter 11 bankruptcy estate of Financial Mortgage, Inc. pending in the United States Bankruptcy Court for the Eastern District of Virginia as bankruptcy case number 08-13287-SSM within five (5) business days of entry of this Order.
2. $3,225.26 of the Escrowed Funds shall be paid to Plaintiff’s counsel to cover costs and the reasonable attorneys fees incurred by the Plaintiff through September 30, 2010. The parties further agree that the Plaintiff brought the action in good faith as an impartial stakeholder.
3. Pending the parties’ continued investigation of the ownership of the Remaining Escrowed Funds, such funds shall continue to be held by the Plaintiff until released upon further order of this Court or another Court of competent jurisdiction.
4. Each Defendant shall be responsible for its own costs. Plaintiff and its counsel reserve the right to seek further costs and reasonable attorneys fees incurred after September 30, 2010 relating to this matter.
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Alexander M. Laughlin, Md. Bar No. 10216, Rebecca L. Saitta, WILEY REIN LLP, McLean, Virginia, Counsel to the Chapter 11 Trustee.
Richard B. Rosenblatt, #04678, The Law Offices of Richard B. Rosenblatt, PC, Rockville, Maryland, Counsel to SBK Settlements Corp.
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Chad King, Federal Bar No. 16888, Simcox Barclay, LLP, Annapolis, Maryland, Counsel to EMC Mortgage Corporation.
Jordan M. Spivok, Federal Bar #01253, Christine N. Johnson, Federal Bar #14944, Protas, Spivok Collins, LLC, Bethesda, Maryland, Counsel to Branch Banking Trust Company.
I HEREBY CERTIFY that the terms of the copy of the Stipulation submitted to the Court are identical to those set forth in the original Stipulation; and the signatures represented by the /s/ _______________ on this copy reference the signatures of consenting parties on the original Stipulation.
SO ORDERED