Mitchem v. Branch Banking and Trust Company, No. 6:2011cv00015 - Document 17 (W.D. Va. 2011)

Court Description: MEMORANDUM OPINION. Signed by District Judge Glen E. Conrad on December 1, 2011. (sfc)

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I THE UN I N TED STATES DI STRI COURT CT FOR THE W ESTERN DI STRI O F V I GI I CT R N A LY NCH BURG DI I ON V SI I Re: n Ci lAc i N o.6: 1 c 0 5 vi ton 1 - v- 001 KEN N ETH L.M I TCH EM , cuERx' oyFl u. Dl counT s cE s sT. De o , bt r A RFLD vv (gt/ T oI l, vz z AE N o . KEN N ETH L. I M TCH EM , DE2 -1 2 2 JULA I Appel nt la , V. B: Y , CL P 0 CLER I I BM N CH BA N KI G AN D TRU ST COM PAN Y , N A ppe l e. le Ci lA c i N o.6- - vvi ton 11 c 0001 6 l R e: n M ERED I R .BU I TH ST, De or bt , M ERED I R . I TH BU ST, Appe lnt la , BRAN CH BAN K W G AN D TRU ST CO M PAN Y , M EM ORANDUM OPI O N NI By: Hon.G l E.Conr en ad Chi fU nied St t D i ti tJ e e t a es sr c udg A ppelee. l M ee t R. s a Ken t L. ic m (oleci y,i ppelnt'ortde or' fld rdih Buit nd neh M the c l tvel i la s' i bt s' ie a ) a m oton on A ugus 26,2010,i t Unied St esBankr cy Courtf t W est n D it i of i t n he t at upt or he er s rct Vigi aCd nk upt Cour' ,se ngt a dale hedb Brnc Ba nga Tr t r ni Ba z cy t' e ki o voi in l y a h nki nd us ) - ) . Compa (t ny $ BB&T' . OnAprl1, 1 t Ba u c Cour de edt a la t'moton, 'l ) i 201 ,he nkr pty t ni he ppelns i c udi t tt y co d nota d BB& T' le oncl ng ha he ul voi s i n.A souti d i isor r t Ba u c lne n t de , he nkr pt y Cour ba e t sc l i on isf cua fndi t tt de o s pr ry c ni d e t s d hi oncuson t a t l i ng ha he bt r ' ope t a e nough vaue l t s c e atrtle a alo pa ta l t s ur BB&T' s cond len.On Aprl7,2011 t o e ur is in nd s ri ly o ec e se i i ,he a lnt tldatmel notc ofa lptrua tt 28U. C.j1 a( ) Theonl is ppela s ie i y ie ppea ls n o S. 58()1 . y sue bef et c ti t i t nta a i whehe t Ba up c Cour' f t fndi r a di or he our n he nsa ppe l s t r he nkr t y ts acual i ng eg r ng t va ue oft de or 'pr ry i c e r y e r ous Fort r as t tf l , he c t he l he bt s ope t s l a l r one . he e ons ha olow t our c l est tt Ba upt y Cou tsf t fndi i no cea l e r ne , onc ud ha he nkr c r ' acual i ng s t l ry r o ous and,a co di y, c r ngl t tt co t us a tr t o de . ha he ur m t fi m he r r BA CK G R O UN D Thede or tldt rj ntCha e 1 peiin o Augus 9,201 Thedebor o ra bt s ie hei oi ptr 3 tto n t 0. t s wn e l pr pery,whi h t utlzea t rr sde e, t4404Boons oRoa Lync ur Vigni o t c hey ii s hei e i nc a bor d, hb g, r i a 2 5 3(p o e t' Thep o e t i s be t oafrtl nh l b Co n r d Ba k, 4 0 d r p ry), d r p ry s u j c t is i ed y u tywie n FSB, e whih i s c e by apr s or not a afr tdee oftus i t a ountof$208, c s e ur d omis y e nd is d r t n he m 000 (ç r deNoe'.Thede or'prperyi as s j c t as ondle hedbyBB&T, ç countywi t ' ) bt s o t s lo ub e t o ec in l whih i s cur d by apr is r not a as c de d oftus i t a ountof$50, c se e om s o y e nd e ond e r t n he m 000 (C C BB&T Not '. e' ) On Augus 26,201 t de o si ta e a a r a ypr e ng i t i ba u c t 0,he bt r niit d n dve s r oc edi n her nkr pt y ca e s ki adeca ain fo t Bank u c Co 'under11U. C.j506()t tt BB&T s , ee ng lrto r m he r pty ul t S. a ha he Not wa uns urd.Uli tl t de o ss ughtunde 11U. C.j5 d)t a dt e s ec e tmaey,he btr o r S. 06( o voi he 1 Thec t t t tt so ni r pr s nt adiposii i t s part appe sfom t Ban upcy our noes ha hi pi on e e e s s ton n wo e ae al r he kr t Co r, th m v Brn hBaliz& Trs Co, . :1c 0 01 ( . Va fldJme l 2 1, n Bus v u tMi e . a c r n c k ut .No 61 -v-0 5 W D. .ie t 4, 01) a d it . Br n h Ba kia & Tr s Co.No. 1 - v 0 01 ( . Va fldJ n 1 , 01 ) Th a p l nsi te ec s s ac n n u t , 6: 1c - 0 6 W D. .i u e 4 2 1 . e p e l t n h s a e e a weejit a tr1 d bosi t b n rpc ato a d d s i fl gt spaaea p aswihti c u th v r on Ch pe 3 e tr n he a ku ty cin n , ept ii wo e rt p e l t hs o r, a e e n pr ed wih t i c esbef et sc ti acons i t f hi Fort sr as t cour w ilalo c oldae oce ed t her as or hi our n oldaed as on. hi e on,he t l s ons i t t s t o c es f rpur e oft sopi on. he e w as o pos s hi ni s ond le s c e by t BB&T No e.Bot t de t sa BB&T agr t t i t vaueo ec in e ur d he t h he b or nd ee ha , f he l f t pr ry i eq t orl s t n t a ountow e on t Countyw i N ot ,t BB& T le he ope t s ual o es ha he m d he r de e he in ma bea d ba e oniswholyu e e saus Seel r Milr 41 B. 73,76 ( y voied s d t l nscurd tt . n e lad, 4 R. -78 D. Md. 2009)(oncudi t tawholyuns c e le i notpr e edunde t a imodii ton c l ng ha l e ur d in s otct r he nt- fcai p o ii no 1 U. C. 1 2 ()2)a d t u , ybea od d , f' , 4 F. p' 8 4(t r v so f 1 S. j 3 2b ( n ,h s ma v ie ) afd 40 Ap x 0 4 h Ci. 0) Howe r t pa tesdia e ast t vaueoft pr ry- t de o sa g t t r 201 . ve ,he ri s gre o he l he ope t he btr r ue ha t pr ryi worhl st nt a towe o t Counr deNoe(nd,hus t t he ope t s t es ha he moun d n he tywi t a t ,ha BB&T' le ma bea de , ndBB&T c e t tt pr ry i worhmor t t s in y voi d) a ontnds ha he ope t s t e han he a mounto dont Countywi Not ( tus t tt i le ma no beavoi d) l wa we he r de e and,h ,ha her in y t de . t s t sve y i s t tt Bank u c Cour c r e i a De m be 1 201 hea i hi r s ue ha he r pt y t onf ont d n ce r 4, 0 rng. Att he ng, t pa te pr s ntd e de et esa ih t vaue oft pr ry.The he mi bo h ris e e e vi nc o t bls he l he ope t de t spr de t tsi bor ovi d he etmonyofDonHa v y($ 1 y' , na as reng dbyt de or' r e i ' ' a ppr ie age Have ) he bt s , W il m Co lo (co lo ' s na p asrhr db BB&T; b aDo ls($ u 1s', li a as n û as n' a p rie ie y t l De r uga t ga ' a Do ) r lorhi e by t deb or 'and Bui t o oft de or . BB& T pr e e t s i ony f om onl ea t r d he t s , s , ne he bt s es nt d e tm r y Coas Ea hoft t eevauai wines s( r ey,Coas a Dougls a e t tt lon. c he hr l ton t se Ha v lon, nd a ) gred ha he p o e t r q ie mao r n v to sa dt a s v r l ft r o h db e ' u td' ndûa e r p ry e urd j r e o ain n h t e ea o he o ms a e n i te 'a d k n g t ba kt t suds' ( ketNo.3- a 73,96 11 ) c o he t . Doc ' 4 t -97, 4. A tt he rng, a ve t tfe t tt pr ry' c r ntunr nova ed va ue w a he a i H r y es ii d ha he ope t s ur e e t l s $ 9 ,0 .(d a 7 ) Hav ye pan dta h a i e a t i fg r b i e tf igwha h 1 75 0 L t 4. r e x lie h t e n v d t hs i u e y d niyn = te co i e ed t be compa a e pr r i i t s w u ng ar a t thad s d wihi s x m ont ns d r o r bl ope tes n he ul ndi e ha ol t n i hs ofhi vauai (d.a 74 ) Oneoft ec rbl prperi (iayma Roa pr ry' s l ton. I t -75. hes ompaa e o tes s a n d ope t ' l ) rquiedr e r enovainsa l si t smeo rl c ton'a t de or'pr ry.(d. to nd t n he a veal ondii ' s he bt s ope t L=at wa TheLa a Roa pr ry s d i isunr novaed saef $1 000. Some i elt r i ym n d ope t ol n t e t t t or 90, tm a e , t wa rn v tda d, ttetmeo Hav y' tsi n , sof rdf rs l f r$ 6 ,9 .( a s e o ae n a h i f r e s etmo y wa fee o ae o 2 00 9 1 t 76. Ha v yalotsiidt thi $1 500vauai fgur i or ae as rce a ) r e s e tfe ha s 97, l ton i e nc portd ubta td mountof $50, f r pais Ha ve s$50,00cos t c efgur c tt e a l s n 000 or e r . r y' 0 t o ur i e onsiut d ump um moun t t t ha , e e f s ver lie ied c te tm aes di notls t s c fcr pai a ount f ri vi l xc pt or e a t m z os si t , d it he pe ii e r m s o ndi dua r vatons.(d.a 81) Thefw rpar f whihHave ofee a iemi de tmae eno i l t . e e is or c r y frd n t ze si t i l d,i pe tnen pa tt kic n a ahe tpump.Ac or ng t Ha ve ar no t d home ncude n ri t r, he t he nd a c di o r y, e vae i t prce r nge o t de or 'pr r y w oul ca lf a S c w ood kic n' w ih c r y n he i a f he bt s ope t d l or t e ni t he ' t he r c bi t ,s a nl s s e la i nc , nd gr nie c a ne s t i e s t e ppla es a a t ount rops H a vey t s ii d t ts h a kic n et . r e t fe ha uc t he woul c tbewe $1 000a $20, d os t en 5, nd 000.( =a 79 ) Ha v yopi dt trplcngt he t J .t -80. r e ne ha e a i he a # pumpwoul cos a a tonal$5, (d.t86 1 ) Uponco ei oft ne esay d t n ddii 000. L=a -87, 51. mplton he c s r r pais Ha v y e tm aedt tt de o s pr ry c d te sl 'beofe ed f s e f a ound e r , r e si t ha he bt r ' ope t oul sa iy' f r or al or r $ 000t $275, (#aa 76. 260, o 000. J t ) Do a a as t c r ntvaueoft de or'pr rya $l 500.(#=a 1 ) ugls ppried he ure l he bt s ope t t 99, J .t 00. Li Have he tg ei r aedas r ceda ke r y, r i ur ncoport ubta t moun of$50, 0 f r is (d. Dougl ' t 00 or epar . l ) as $50, c tt c e tgur co prs d a l p s a nta i ude no ie i d e tma e 000 os o ur i e m ie um um mou nd ncl d t m ze si t s f i vi lr pais I a f ly r nova e s a e, ougl st s ii d t s w oul ls t de o s or ndi dua e r . n u l e t d tt D a e tfe hat he d i t he bt r ' prpe t a $249, (d.a 101. o ry t 900. I t ) Coa s t s ii d t tt c r ntunr no t d va ue oft de o s pr t w a l on e tfe ha he ur e e va e l he bt r ' opery s $260, (d. t11 ) I or ae i oCoalo svauai fgur wasac tt c ea 000. l a 6. nc portd nt s n' l ton i e os o ur moun t of$27, (- a 11 ) UnlkeHa v ya Dougls howe r Coas pr de ac tt c e 000. J. t 8. i r e nd I L a , ve , lon ovi d os o ur fg let ti l i tr ha ncuded a ie z d ls ofa lne es a yr par a t i a compa ng c t . n t mi e it 1 c s r e is nd he r c nyi oss Re e tt t sa a ,Coa s s c tt c e f g e di notm e i t he tpum p a l van o hi ppe l l on' os o ur i ur d nton he a nd 4 rc e omm e d t i t lton ofa $8, kic n wih f mia c e t a t w ssyl' nde he nsala i n 000 t he t or c ountrops nd d owe'-t e' l c bi t.(d.a 11 a nes l t 9-20,1 ) 37. Fi l Bui tm e i d i hert s i ony t tt kic n ale f a ur d a r f i r t , naly, s ntone n e tm ha he t he r ady e t e e r ge a or a ove a asnk. (d.a 1 . Furhemoe,Buitc n n, nd i 2 I t 07) t r r s omme e onCoas salge ntd lon' le d al nes durng hi i pe ton oft p o ry a hi unw ilngnes t he i oof s i s ns c i he r pe t nd s li s o ed nputo f r d by he fe e r durngt cou s oft i pecin.(d. t1 -1 ) i he re he ns to 1 a 08 0. The Ba u c Cour i s d isdec s on a o de o A pr l1 201l l ta l t nkr pt y t s ue t i i nd r r n i , . nii ly, he Ba u c Cour r viwedt va yi a aiass nkr pty te e he r ng ppr s l ubmit by t t eeva uai n wine s s ted he hr l to t s e a t n obs r ed,( hier tonalzi c m pei val to i notan e s e nd he e v t l a i i ng o tng uai ns s W a y ndea r t Cour vo ,he t no est tt f c spr s nt d byt sc emakedee m i ng t a pr it va uepa tc a l t ha he a t e e e hi as tr ni he p opra e l riulry ditc t' (d. t1 ) TheBa nz c Cour f t rnotdt S ari sbllt 'of fiul. l a 66. ' nk pty t urhe e he i mposi iiyq' ne l ai prpe te , o pur esofco rbiiy,t taei asmia saeofdirpar (#=a oc tng o ris f r pos mpaa lt ha r n i lr tt se i. J .t 1 )Howeve,t Ba u c Cour i ntfe aco 67. r he nkr pty tde iid mmonvennz ngt oug e c oft i nni hr h a h he t eevaua orsas e s e s al t e oft s wine s ,a or ng t t Bank upt y Cour, hr l t ' s s m nt- l hr e he e t s es cc di o he r c t r a he t i i vi ua a ai a val sby fr te tm a i t pr r y' va ue i r nova ed a e c d he r ndi d l ppr s l ue i s s i tng he ope t s l f e t nd, t n, s rci fom t tfgur t cos t a c iht ne sar r par .(d. The he by ubta tng r ha i e he t o c ompls he ce s y e is l ) Ba nl c Cour e e t d t a nk pt y t l c e o doptt s s m e a pr c i a r vi a is own f t fndi w ih hi n p oa h n r i ng t t ac ual i ng t res pectt t pr o he opert scur val y' rent ue. l pr ee ng w ih t s f m ul t Ba nz c Cour tr tca c a ed a cos t c e n oc di t hi or a, he nk pt y t i s l ul t t o ur tg e. I f ndHa ve st tmony mor c edi ewih r pe tt t kiche r pais howe r i ur t ou r y' esi e r bl t es c o he t n e r ; ve , i r duc d Ha v y' e tm a eby $2, t $3, b e on t pr xitng pr s nceof t e e r e s si t 000 o 000 as d he ee si e e 2 I wast pr s eoft ea ince i t kiche t tpr t he e enc hes ppla s n he t n ha omptd Coas t om i e tm at f t s e lon o t si es or he e i msi hsc torp i fg r .( c e No 34a l 9) t n i ost e ar iu e Do k t . - t 1 . e a inc . (d. t168 ) He e,heBa krptyCour al aedarng of$1 000t $1 000 ppla es3 l a nc t n u c t loc t a e 2, o 8, . t t r pa rcos sas oc a e w ih t kic n. H owe r f ral oft r m a ni r no tonsa o he e i t s i t d t he t he ve , o l he e i ng e va i nd r par ,he Bankr pty Cou ta ed Coas sie ze ls ofr parie s whih a o e t e is t u c r dopt lon' t mi d it e i t m , c m unt d o at t lo $1 250,notngt t unlkeHa ve a Dougls Coalo t ovi d unc r re o a f 9, i ha , i r y nd a , s n û de pr ontove td vauesf wha i woul c tt fniht rmai ngrparie . J , TheBa u c Co t l or t t d os o i s he e ni e i tms' #'( ) nkr pty ur t nagg e tdt c i c t ( 1 000t $1 000pl $1 250 t arvea at alc tt he r gae he urng oss $ 2, o 8, us 9, ) o ri t ot os o c erng of$31250t $37, (dsa 1 )TheBa uptyCour s e tdDougl ' ur a e , o 250. L. t 69. u nkr c t elce as $249, fg e r ga di t pr ry' val i ar nova e sa ea t n s ta t d t r par 900 i ur e r ng he ope t s ue n e t d t t nd he ub r c e he e i c t fom t ttgur (d. oss r ha i e. l )Thus t Ba uptyCou tf ndt tt a oxi t c rnt ,he nkr c r ou ha he ppr mae ure vaueoft pr rywasbewee $21 650t $ 650.(4. Theeor be a et l he opet t n 2, o 218, Lz ) rf e, c us he Ba u c Cour f undt tt r wa a e t c hi n ofbe we n $4, t $1 650,i nkr pt y to ha he e s n quiy us o t e 650 o 0, t dee m i d t tt BB&T Not r m aned pa taly s c e Fort sr as t Ba upty tr ne ha he ee i ri l e ur d. hi e on, he nkr c Cou tc l r onc uded t tt de or c d nota d BB& T' le ha he bt s oul voi s i n. The de or t n tl a tm e y notc ofa bt s he i ed i l i e ppea . Bo h pa te s e l t r i s ubs quen l s it d ty ubm te a a br e s a t c t he he r or a gum e . ppe l i f nd he our t n a d al r nt DI SCU SSI N O 1 . LegalSt andard Thec u t o s se a p laej rs ito o e t smatrp ru n t 28U. C. 1 () o r p se s s p elt u idcin v r hi te u s a t o S. j 58a . A dititc t e e aba upt y c tsf cualfndi f clr e r a islgal src our r viws nkr c our' a t i ngs or e ror nd t e co l i deno l r M ee t 527F. 372,375( hCi.2008)(ii l r Kilsh, ncusons vo. n e rdih, 3d 4t r ctng n e eic 258F.d 31 31 ( hCi.2001) I r W hie 487F. 1 20 ( h Ci. 3 5, 9 4t r ); n e t, 3d 99, 4 4t r 2007) A fcua . at l fndi i c e r y e r ous i û he r vi w i c r on t e ie e de e i l f wih t detnie i ng s l a l r one f t e e ng ou t he ntr vi nc s e t t he i t t 3 H av y e tmatdt kic a ince woul c tbewee $2, and$3, . ( c e No 3 4a 8 , d os t n 000 000 Do k t . - t 6 r e si e hat then ppla s 1 . 68) 6 a 511 c c i t am it keha be n c mit d.'Unie Stt sv. S. nd 41 onviton hat sa s e om te ' t d ae U. Gyps Co.333 um , U. 36 395( 948) I çheeaet pemisbl vi oft evi nc t f ti ers S. 4, 1 . f ç r r wo r si e ews he de e,he acfnd ' t c c bet e n t m cmm otbe c e r y e r ous ' Ande Fm v.Ciy ofBes e e Ciy, . , hoi e w e he l a l r one . ' rf t s m r t N C. 4 0U. 5 4, 7 ( 9 5 ( i n UntdS ae v Yelw Ca Co, 3 U. 3 , 4 ( 9 ). 7 S. 6 5 4 1 8 ) ct g ie tts . l i o b .3 8 S. 38 3 2 1 49) W he r viwi fndi off c ,C r ga d s l be gve t t o runiy oft ba pty n e e ng i ngs a t t e r hal i n o he ppo t t due he nknl c c u toj d et ce iii o wi e ss' Fe . Ba l . 8 3 o r t u g he r dblt f t se . d R. nc P. 01 . y n ' r lI. A nal s ysi l ge r ,t a la sr i e t e a g e t on a n ne al he ppe l nt a s hr e r um n s ppea , m e y, ha t Ba kr c l na l t t he n upt y Cour clal erdby( )mii eprtngc rane d ea f rhemor fcusngo t t e ry re 1 sntr ei e ti vienc nd,' t r e, o i n he u wr e de ei rac ngisvauai fgur ( c lultngi orecl t c tt c e ong vi nc n e hi t l ton i e,2) ac ai nc r ty he os o ur a moun,a ( af di c e biiyt t val tont tmonyofCoas Thec twil t nd 3) for ng r di lt o he uai esi lon. our l a es e c oft s a gum e sbel . ddr s a h he e r nt ow A. Bankrupt C ourtm i i erpret e denee and focus on w rong evi cy s nt ed vi ed dence l tal t a la sa g es e ilyt tt Ba u c Cour m ii er ee c ran nii ly, he ppe lnt r ue s nta l ha he nkr pt y t snt pr t d e ti e de e a f rhe vi nc nd, u t nnor f us d on t wr e de ei a rvi a isvaua i fgur f e, oc e he ong vi nc n r i ng t t l ton i e or t pr pe t Fis, heappe lnt c ii z t Ba nl c Co tssae e t ti wa ne ry he o ry. rt t la s rtcie he nk pt y ur ' t tm nt ha t s a l i m pos i e't l a e S ope tesi a sm ia g r phi r gi t ta e s m ia i s z a i a ' i sbl ' o oc t l pr r i n i l r eog a c e on ha r i l r n i e nd n smia saeofdirpar't t de or prpet ( ke No. 4a 1 ,c e ngt t i lr tt se i' o he bt s' o ry Doc t 3- t 67) ontndi ha Ha v t sii d t thef r ey e tfe ha ound apr pery i aco pa a e sa eofdir par t La a Roa o t n m r bl tt se i- he ym n d p o e t.(d a 75 7 ) Th a p la t' be t nt t sfcu l idngb t Ba k u ty r p ry I . t - 6. e p eln s o jci o hi a t a fn i y he n r pc o Cour pr vesuna lng,a t cou ti notl t ih t de i t co c i t tt Ba u c t o vaii s he r s ef w t he fnie nvi ton ha he nkr pt y Courtcom m it a m i t i r ted sake n eachi t sf ndi Even Harvey acknowl ng hi i ng. edged t t hat here wer e notc a edifrnc bewee t La nRoa pr rya t de or'prpet I- ) ie bl fee es t n he yma d ope t nd he bt s o ry. J. I k Furhe m or ,t co tnot st dr tcsae o dir pa rt tc r c e i d t de o s pr pe t t r e he ur e he asi t t f se i ha ha a t rze he bt r ' o ry. (d. t7 , 6 7 11 ) W hl teBa k u tyCo r mih h v b e usiidi f c sn o t e I a 3 9 -9 , 4. ie h n r p c u t g t a e e nj tfe n o u ig n h La a Roa pr r y,t c tr og z t t i ç he e a e t o pe m i sbl vi w soft ym n d ope t he our ec ni es ha , f t r r w t r si e e he e de , he f t i r schoi e be w e n t vi nce t ac fnde ' c t e hem c nnotbe c e r y e r ous' A nde s 470 a l a l r one . ' r on, U. a 5 (iai omitd) S. t 74 ctton te . Se ond,t a la scon e t tt val oft i pr r y w oul ha bee m or c he ppe l nt t nd ha he ue he r ope t d ve n e a c a e y de e ne i t Ba t c Co tha f us o t t tm ony r r ng f i c ur t l t nni d f he nkr l y ur d oc ed n he es i pt ega di a r m a ke val ,r t rt n t s cul tve t tm ony c nc m i f u e ls i prc t t r t ue a he ha he pe a i es i o e ng ut r i tng i es ha co e pl t d t c pl ton oft nec s ar r nova i . l t s m e ve n,t a la s nt m a e he om e i he e s y e tons n he a i he ppe l nt a guet t es e i l t Ba u cy Cour m iconsr ed ce t n t tm ony a em pl d a r ha , s ntaly, he nkr pt t s tu rai es i nd oye val ton f r at t conta y t t Ba upty Cour' belef wasnote o d by alt r e uai o mul ha, r r o he nkr c ts i , mplye l he oft va ua i w ines e . Thes a g e slke i e f i. As t Ba upt y Co t t d i is he l ton t s s e r um nt i w s a l he nkr c ur no e n t or r t s ngul rc r c e oft pr pe t a t a e e ofc par bl pr ri s û a de , he i a ha a t r he o ry nd he bs nc om a e ope te i ke m dee ni t a opraevauepa tc a l difc t' ( ke No.3- a 1 ) l t tnni ng he ppr it l riulry fiul.' Doc t 4 t 66. n he exe c s ofisdic ei n,t Ban u c Cour a edt vaua i f mul t ti c i r d r ie t s r to he kr pt y t dopt he l ton or a ha t onsde e mos s t bl t t uni st ton bef ei.Tha t a la s ort scour f t tmat r t uia e o he que iuai or t t he ppe lnt , hi t or ha te , m i tdia e wih t Ba pt Co tsvauai f mul i no e gh s gr e t he nknz cy ur' l ton or a s t nough t ce t hi o lar he gh hur e e t bls d t dl s a i he mdert c ea e ors a r he l r n' t nda d. B. Bankrupt C ourti cy ncorrecty cal at costt cure am ount l cul ed o N e ,t appe l nt c l e t Ba ru c Cour ' c l ul ton oft c t a s a ed xt he la s haleng he nk pt y ts a c a i he os s s oci t w ih r paii t pr t Fis , hey a g t tt Ba up c Cour c e l e r d w he i t e r ng he opery. r t t r ue ha he nkr t y t l ary r e nt a sg ar nge of$1 000t $1 000t Ha v sesi aedcos t czet kic n.Thi s ined a 2, o 8, o r ey' tm t t o lr he t he s a gum e lke i e fndsno t a ton. A lhoug Ha v y' t s i ony c r nt i w s i rci t h r e s e tm once ni t kic n r ng he t he 8 r isc d be it r ee a s epar oul n e pr t d s uppori ahi e fndi of$1 000, heco tno est thi tng gh- nd i ng 8, t ur t ha s t tm ony c d a s be i e pr t d a s esi oul l o nt r e e s uppori a r ng bas f ndi tng a e- ed i ng- l a ve t s ii t t l r y e tfed ha t kic nrpar c dt 1 20t anddolas' I a 80. l a eve t t sa g n he the e is oul t 5, hous be lr. d. t ) n ny n ,hi r ume t '( pr vesir e nt Eve gi ng t de or t be ftofs r ci t hi rfg e fom t o relva . n vi he bt s he ne i ubta tng he ghe i ur r he pr r y' val ,t pr ry i s ilw orh m or ,ac or ng t t B a upt Cour ' f ndi , ope t s ue he ope t s tl t e c di o he nkr cy ts i ngs t n t a ountow e on t Countyw i N o e. ha he m d he r de t Se ond,t a l nt c e tt Bank u c Cou tsdec s on t i e t s i o f om c he ppela s ont s he r pt y r' i i o gnor e tm ny r bohHa v a Do lsrga dngne de rpaist t he tpu t r ey nd uga e r i e d e r o he a mp.(d.a 86 99,1 . l t -87, 51) Ahera ce tng Ha v y' cos t c eesi t r ga di t kic c pi r e s t o ur tma e e r ng he t hen, heBank u c Cour t r pt y t a pt d Coa s sr pa re tm a e o a loft r m ani ie ;howe r Coas sc tt do e lon' e i si t s n 1 he e i ng t ms ve , lon' os o c e fgur m a no alow a e f rt he tpum p a ur i e de l nc o he a boutwhi h H a v y a Dougl st s ii d. c r e nd a e tf e W hiet c t t st tt Ba u c Cour' d cii t e udet c tofr paii t l he our no e ha he nkr pt y ts e son o xcl he os e rng he he tpump e re adipostvei c on t o c a xe td s ii mpa t he ut omeoft sc e,4t e cour c hi as h t onco ia l m tnty r ogni est tt Ba upt y Cour e ec ed t a tCoa s ses i a e r ga di t c tt ec z ha he nkr c t l t o dop l on' tm t s e r ng he os o r pa rt no kic ie s. The Ba upt y Cour ba e is de i i o t f ctt tCoa s e i he n- t hen t m nkr c t s d t c s on n he a ha l on, unlke H a v y a D ougl s E ovi d unc r ve t d va uesf wha i w oul c tt fnih t i r e nd a ,l pr de ont o r e l or tt d os o i s he r i n rparie . (d.a 1 ) Asdsus e beow,hi ce biiydeemi to mus be emanig e i tms' I t 68. ' ic s d l t s rdi lt tr nain t af o de d r ga d by t s c t Fe R.Ba .P.8 3. f r d ue e r hi our . d. nkr 01 4 Ha ve esi t t tt cos t r pai t hea pump woul r a r y tmaed ha he t o e r he t d un bout$5000. ( c e No. - a 8 8 ) Do k t 34 t * 7. Addi t s$5, fg et t r i ngrparesi t ,whieusngt hih-nd $1 000fgur f t kic ng hi 000 iur o he emani e i tmaes l i he g e 8, i e or he then r is woul r et vaueoft pr ryt $207, - si ty l st nt $208, vale oft epar, d educ he l he ope t o 650 1gh l es ha he 000 u he Countyw i Not Thi fndi w oul r ul i t dee m i tont tt de or c d ha avoi BB& T' r de e. s i ng d es t n he tr nai ha he bt s oul ve ded s cam ,whih,unde t sr s ng,woul ber nde e wholy uns c e li c r hi ea oni d e rd l e ur d. C. B a upt y Cour i pr r y l nt c e biiy t Coal on' t s i ony nkr c t m ope l e r di lt o s s e tm Fi l t a la sur t s c tt co ude t tt Ba u c Cour c ea l e r d naly, he ppe l nt ge hi our o ncl ha he nkr pt y t l ry r e whe i dimis d a i e bl Coa s sesi t sr ar ngt cos t c et kic n, n t s s e s ncr di e lon' tma e eg di he t o ur he t he but t n pr e d t adop Coal o sesi a esr a d ng t c tt efec t non- t he r pais he oce de o t s n' tm t eg r i he os o f t he kic n e r . Thea la sar ue: ppelnt g A r as bl m a c d no t ke t es i a e ofM r Coa s s r o l w hen t s e ona e n oul t a he tm t s . l on e i us y hi a a s rbe i s t tf m i a c t rops a Low e syl ca ne s w oul be i ppr i e leve ha or c oun e t nd s t e bi t d n lne wih a hous oft s na ur . M r Coa s n' appr c fom hi a l i oft i t e hi t e . lo s oa h r s na ys s he kic n and isr quie e s c e ry s t thi i a ofsa i bac t t rt t he t e r m nt, l a l how ha s de lp t k oge he he c pes w a pos i e i t a o h t the t t a d t c t ob a ne on hea t y s bl s he ppr ac ha ook ow r he os s t i d t shous hi e. ( ke No.1 a 8 ) Doc t 3 t -9. Wh l t Ba k u tyCo r mih ra o a l h v d tr n dt rj c a1 fCo lo ' ie he n r pc u t g t e s n by a e eemi e o ee t l o as n s t tm on t f c t ti c e nott do s doe nota oun t cl a er or The c ur no e t t esi y, he a t ha t hos o o s m to er r . o t t s ha , es i ly r ga di f c ua tndi o w ine sc e biiy, l ue r ga d s lbe gi n t t pec a l e r ng a t l i ngs n t s r di lt td e r hal ve o he o p ru i o teba k u ty c u t oj d et ece iii o win se . F d R. n r P. p o tnt f h n r pc o r t u g h rdb ly f t e s s' e . Ba k . y t ' 801 l sm pl wa no unr s bl f t Ba upty Cour t c l t tt ho ec d 3. t i y s t ea ona e or he nkr c t o onc ude ha he us oul be r nde e m a ke abl w ih l st n t p oft lne m a e i l . A se a ned a e r d r t e t es ha o he i t ras xpl i bove t m e e , he r f tt tt a la s ort sc ur f rt tm at , i dia e i sm pl nots fce t ac ha he ppel nt, hi o t o ha ter m ght s gr e s i y ufi int o i pugn t B m he pt y Cour ' c edi lt de e m i tons c ts r biiy t r na i . CO N CL USI N O Fort f e ng r s , he c tc ude t tt Bankr cy Cour di notco m i he or goi ea ons t our oncl s ha he upt t d m t r ve sbl c ea e r i isf c ua fndi c e ni t va ue oft deb or 'pr pery. e r i e l r r or n t a t l i ng onc r ng he l he t s o t A ccor ngl t Bankr cy Cour ' deci i and or t t BB& T N ot i pari l secur di y, he upt ts son der hat he e s taly ed 10 a t , ha t de o sm a nota d BB& T' c a m ,m us be a fnne nd, hus t t he bt r y voi s li t f i d. The Cl r i die t d t s nd ce tf e c esoft sm e or ndum opi on a t ek s rce o e rii d opi hi m a ni nd he a c pa ng or rt a 1c c om nyi de o 1 ouns lofr cor e e d. $to p ENTER:'hs ti d yo j -'- y , r i . a f uz s ttv . j ' e i 2) 1 ,(1 . j l Chi Unied St t Diti tJ ef t aes src udge 11

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