Buist v. Branch Banking and Trust Company, No. 6:2011cv00016 - 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 TH E U N I N TED STA TES D I STRI CO U RT CT FO R TH E W ESTERN D I STRI O F V I I A CT RG NI LYN CHBUR G D I I O N V SI Ci lA c i n N o. 11 c 0001 vi to 6: - v5 l Re: n K EN NETH L.M I TCH EM , CL S OFFI U, . ST. 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Co ny(t mpa tBB&T')1OnAprl1 2011 t Ba upc Cour de e t a la s moton, '. i , ,he nkr ty t nid he ppelnt' i c l ng t tt y c dno a dBB&T' le Asou lne i isor r t Ba l u c oncudi ha he oul t voi s i n. ti d n t de , he rkr pt y Co t s d t s c l i on isf c ua tndi t tt de or 'pr ur ba e hi onc us on t a t l i ng ha he bt s opery ca e e ug val t ni d no h ue t s c e a t r tle a a s pari ly t s c e BB& T' s c le o e ur i s i n nd l o ta l o e ur s e ond i n.O n Apr l7,2011 t i , he a la t fldatmeynoi ofa al s ntt 28U. C.j 1 a ( ) Theonl is ppelns ie i l tce ppe purua o S. 58() 1. y sue be or t co ti t i tnta ali whe he t Ba u cy Co tsf c ua tndi r ga di f e he ur n he nsa ppe s t r he nkr pt ur' a t l i ng e r ng t va ue oft de or 'pr t i c e ry e r he l he bt s opery s l a l r oneo . Fort r s t tf l ,t c t us he ea ons ha olow he our c nc ude t tt Ba u c Cour ' f c ua fnd ng i notc e r y e r o l s ha he nkz pt y ts a t l i i s l a l r oneo ,a a or ngl us nd, cc di y, t tt c tmus a tnn t or r ha he our t fi he de . BA CK G RO U ND Th d bo stldt er on Ch p e 1 p t ino Au u t9 2 0.Th d bo so ra e e t r ie h ij it a tr 3 ei o n g s , 01 t e e tr wn e l pr ry, hi h t y utlz ast i r i nce a 4404 Boo bor Roa Lync ope t w c he ii e he r esde , t ns o d, hbur V igi a g, r ni 2 0 (sr p ry'.Th p o ryi s be t oatrtinh l b Co nr ieBa k FS 45 3 t o e t ' e rpet s u j c t is le ed y u tpv d n , B, p ) whih i s c e by apr s or not a afrtde d oftus i t a c s e ur d omi s y e nd is e r t n he mountof$208, 000 (co n rwieNo e'.Th d b o s p o e t i as s be t oasc n l nh l b BB&T, t u ty d t' t ) e e t r' r p ry s lo u jc t e o d i ed y e whih i s c edby apr s or not a as o de o t s i t a c s e ur omi s y e nd ec nd ed f nlt n he mountof$50, 0 00 (C tBB&T Not' . e' ) On A ugus 26,201 t de or i tat d a a r a y pr e ng i t i ba kr t y t 0, he bt s nii e n dve s r oce di n he r n up c c e,se ngade aai fom t Ba u tyCour unde 11U. C.j506( t tt BB&T as e ki clrton r he nkr pc t r S. a) ha he Noewasuns c ed.Uli tl t de t ss tunde 11U. C.j506( t a dt t e ur tmaey,he bor ough r S. d) o voi he ' Thecou tnotst tt sopi onr pr ent adipostoni t s pa aea l fom t Ba u c r e ha hi ni e es s s ii n wo e r t ppeas r he nkr pty Co r, i h m v. a c Ba k n & Tr s Co.No 6: lc - 0 5( . Va fldJ n l , 01 ) a dBus v u tM t e Br n h n i a c u t , . 1 -v 0 01 W D. . i u e 4 2 l , n it . e Brn hBa kn & Tr sCo, . 1 -v 0 01 ( . Va fldJn 1 , 1.Th a p la t i teec ss a c n ic ut .No 6:1c - 0 6 W D. .i u e 4 201 ) e p elns n h s ae e weej itCh pe 1 d bo si teb n rpc a to a d d siefl gt sp rt a p aswi ti c uth v r on a tr 3 e tr n h a k u ty cin n , ept in wo e aae p e l t hs o r, a e i h pr ee d wiht rc esbef et sco ti ac oldae fs o Fort sr s t c twilas cons i t oc de t hei as or hi ur n ons i td a hin. hi ea on, he our l lo oldae t e t c s f pur esoft sopi on. hes wo a es or pos hi ni s c le s c e byt BB&T No e.Bot t d bt sa BB&T a eet t i t vaueof e ond in e ur d he t h he e or nd gr ha , f he l t pr t i e lt orl st t a o owe on t Count m i N o e, he BB& T le he opery s qua o es han he m unt d he r de t t in maybea de baedoniswholyuns c e saus Se I r M ilr 41 B. 73, voi d s t l e ur d tt . e n e lad, 4 R. 76-78( D. M d.2009)( l ngt tawholyuns c e le i no pr tce unde t a imodiiai concudi ha l e urd in s t oe td r he nt- fc ton pr sonof11U. C.j1 b)2)a t ,ma bea i d) afd,404F.App' 8 ( h ovii S. 322( ( nd,hus y vode , f' x 04 4t Ci. 0) Ho ve,t patesdiag e a t t val oft pr t t de or aguet t r 201 . we r he ri s r e s o he ue he opery- he bt s r ha t prperyi wo t l st nt a mtowedont Co r wi Not (nd,hus t t he o t s rh es ha he mot he unty de e a t ,ha BB&T' le maybea ded) a BB&T co e t tt pr ryi worhmor t nt S in voi , nd ntnds ha he ope t s t e ha he a mountowedont County deNot (nd,t ,ha t i le ma notbea ded) l was he r wi e a hus t ther in y voi . t t sve y i s t tt Ba upt Cou tc r t d i a D e e be 1 201 he i hi r s ue ha he nkr cy r onf on e n c m r 4, 0 arng. A tt he i bot pari pr s nt e de e t e t bls t va ue oft pr pe t The he arng, h tes e e ed vi nc o s a ih he l he o r y. de o sprvi dt t tmonyofDonHave (t l e ',a a as e edbyt de or' btr o de he esi r y $ ' y') n pprier ngag Ha v he bt s , W iln Coas (ç s ',a a aie hie byBB&T; br Dougl ($ 1s',a lim lon ç Coalon' n ppr s r rd ) De a as $ Douga') r alorhie by t de or ;a Bui t one oft deb or . BB& T pr s nt t tm ony fom onl e t rd he bt s nd s , he t s e e ed esi r y Coas Eac oft tr eval tonwineses( r e Coas a Dougls agee t tt lon. h he h e uai t s Ha v y, lon, nd a) r d ha he p o e t rq ie mao rno t nsa dta s v rl ftero h dbe n û utd' n da e r p ry e u rd j r e vai n h t e ea o h o ms a e ç te 'a d t k n o g t ba kt t suds. ( ke No.3- a 73,96 11 ) c o he t ' Doc t ' 4t -97, 4. Att he r ng,H a ve t s ii d t tt pr pery' cure unr nova e val w a he a i r y e tf e ha he o t s r nt e t d ue s $1 500.(d. t74. Have e anedt thea ve a t sfgur byi iyi wha he 97, 1 a ) r y xpli ha ni d thi i e dentf ng t c i r d t be c pa a e pr pe te i t s r undi a ea t tha s d w ihi s x m ont ons de e o om r bl o r i s n he ur o ng r ha d ol t n i hs ofhi val ton.(d.a 74-75. Oneoft s c s uai I t ) he e ompaa epr ris(çvyma Roa prpet ' rbl ope te ûla n d o ry' ) r quie rnovai a S i t s meovealc ton'ast de or 'pr ry.t.,a e rd e tons nd s n he a was r l ondii ' he bt s ope t Js t d 75. TheLa nRoa pr rys di isunrnovae saef $1 000.Somei lt ,i ) yma d ope t ol n t e td tt or 90, tme aer t wa rno tda d, tt etmeo Ha v y' tsi n wa o frdf rs l f r$ 6 ,9 .( -a s e vae n a h i f r e s e tmo y, s fee o ae o 2 00 9 J , t # 76. Ha ve as t tfedt thi $1 500val tonfgur i omort as r tda untof ) r y lo esii ha s 97, uai i e nc aed ubtace mo $50, f r par . Ha ve s$50, c tt c efg econsiut al p s a 000 or e is r y' 000 os o ur i ur tt ed um um mountt t ha, e p f s ve a ie i d c tesi t s d d no ls t s c fcr paramount f i vi ual xce t or e r l tm ze os tma e , i t it he pe ii e i s or ndi d rnovains (d.a 81)Thef rpaisfrwhihHa v yofeedanie z desi t e to . I t . ew e r o c r e fr tmie tmae i ude i pe tne par,t kic n a a he tpum p. Ac r ng t H a vey,a r nova ed ho e ncl d, n r i nt t he t he nd a co di o r e t m i t pr c r ng oft deb or 'pr pe t woul c l f a d c w ood kic ' ih c r y n he i e a e he t s o r y d a l or t e ni t hen'w t he r c bi t ,s a nl s s e a i nce ,a g a t c t rops Ha ve t tfed t ts h a kic n a ne s t i e s t el ppla s nd r nie oun e t . r y esi i ha uc t he wo dc tbewe n $15, a $20, ul os t e 000 nd 000.(d. t79 0. Have opi t trpl i t hea 1 a -8 ) r y ned ha e acng he t pumpwoul cos a a to $5, (#. t86 1 ) Upo c ein oft ne esay d t n ddiinal 000. J=a -87, 51. n omplto he c sr r pa r,Ha v y esi t d t tt de or 'pr ry c d ç sl ' ofe e f s l f ar und e is r e tma e ha he bt s ope t oul d iy'be f r d or a e or o ea $260, 0t $ 0 (d.a 76. 00 o 275,00. l t ) Douglsa aie t c rntvaueoft de or 'pr rya $1 500.(d. t1 ) a ppr s d he ure l he bt s ope t t 99, L= a 00. LieHav y h rfg r i c po ae as ta tda u t f$ 00 0f rrp is (d) Do ga ' k r e , e i u e n o rtd ubr ce mo n o 5 ,0 o e ar. L= u ls $50,00 cos t c efg ec prs d al s a 0 t o ur i ur om ie ump um mounta i l ed no ie z d esi aes nd nc ud t mi e tm t f i vi lr pa r . I a f l r nova e s a e Dougl t tfe t ts w oul ls t d t s or ndi dua e is n uly e t d tt , as es ii d ha he d i t he eb or ' pr rya $249, (d. t1 . ope t t 900. 1 a 01) Coa s t s ii t tt c r ntt r nova e val oft de or 'pr r y was l on e tfed ha he ur e m e t d ue he bt s ope t $ 000.(#=a 1 6. l oportdit Coas svauai tgur wasac tt cu ea 260, J . t 1 ) nc ae no lon' l ton i e os o r mount of$27, (d.a 118. UnlkeHa ve a Dougls howe r Coas pr vi dacos t c r 000. l t ) i r y nd a , ve, lon o de to ue fgtr t ti ude an iem i d ls ofa lne e s r r pa r a t i a c pa ng cos s i le ha ncl d t ze it l c s a y e i s nd he r c om nyi t. Rel evantt t s appeal Coalon' costt cur fgtr di notm enton t heatpum p and o hi , s s o e i ze d i he 4 rc e omm e d t i t la i ofa $8, kic wih f m iacountropsa t a s syl ' nde he nsa lton n 000 then t or c e t nd s owe'-t e' t c bi t.(d.a 11 a nes l t 9-20,1 ) 37. Fi ly,Bui tm e i ne i he t s i o t tt kic n ale y f t e a r f i a or na l s nto d n r e tm ny ha he t he r ad ea ur d e rger t , a ove a asnk. (d.at107 ) FM hemor Buitco nt onCoas salge n n, nd i 2 I r e, s mme ed lon' le d . a oof s d i hi i pe ton oft pr r y a hi unw ilngne st he d i l nes ur ng s ns c i he ope t nd s li s o e nputof e e by he frd r durngt co s oft i peci (d. t1 -1 ) i he ure he ns ton. l a 08 0. TheBa nz c Co tis d isde son a or ron Aprl1, 1 I tal t nk pty ur s ue t cii nd de i 201 . nii ly,he Ba u c Cour r e e t va yi a a s l s it d by t t z e v uaton w ines e nkr pt y t evi w d he r ng ppr i a s ubm te he h e al i t ss a t n obs r d,çW hier tonai i c nd he e ve ' l a i lzng ompe i vaua i i no a ea y e a ,he Co t tng l tons s t n s nde vor t ur no e t tt f c spr en edby t sc s ma d t r ni t a opraevaue pa tc a l t s ha he a t es t hi a e ke e e mi ng he ppr i t l riulry ditc t' (d.a 1 ) TheBa uptyCou tf t rnoe t E a i sbglt 'of fi ul.' 1 t 66. nkr c r urhe td he i r mposi iiyl' ne l ai pr tes f pur esofc oc tng operi ,or pos ompa a lt t taei asmia sat ofdirpar (#=a r biiy,ha r n i lr t e se i. J . t 1 ) Ho ve,t Ba upty Cour i nii dac 67. we r he nkr c tde tte ommo vei nmni tr ug e c oft n n ng h o h a h he t e val t ' a s s m e s a lt e oft s wine s ,a cor ng t t Ba upt Co t hr e ua or s s e s nt- l hr e he e t s es c di o he nkr cy ur , r a he t i i vi e c d he r ndi duala ai a val sby fr tes i a i t pr r y' va ue i r nova e a ppr s l ue i s tm tng he ope t s l f e t d nd, t n,bys r ci fo t tfgzet c tt ac ompls t ne esayrpar .(#. The he ubta tng r m ha ilr he os o c ih he c s r e is J ) Bankr c Cour e e t d t a ptt ss m e a o h i a i a is own f t lfndi wih upt y t l c e o do hi a ppr ac n niv ng t t ac ua i ng t r pe tt t pr ry' c r ntva ue es c o he ope t s ur e l . I pr e ng wih t s f m ul ,t Ba u cy Co tfr tc c a e a c tt c e n oce di t hi or a he nkr pt ur is al ul t d os o ur fgur l f i e. t ound H a ve st s i ony m or c e bl w ih r s c t t kic n r pa r ' w e r r y' e tm e r di e t e pe t o he t he e i s ho ve , , i r d e Ha ve se tm ae by $ 000t $3, 0 ba e on t pr xitngpr s nc of t e uc d r y' si t 2, o 00 s d he ee si ee e 2 I wast pr s nce oft e a i nce i t kic n t tpr t he e e hes ppla s n he t he ha ompt d Coa s n t omi es i a esf t s e l o o t tm t or he e i msi hsc s t rp ifg r .( c e No 34a 1 9) t n i o to e ar iu e Do k t . - t 1 . e a pl n e . (d. t168 ) He c ,heBa l u tyCo r alc tdar n eo $l ,0 t $1 ,0 p i c s3 I a a n e t nc pc u t lo ae a g f 20 0 o 80 0 r . t t r pa rc t a s a e w ih t kic n. H ow e r f ral oft r m a ni r nova i nsa o he e i os s s oci t d t he t he ve , o l he e i ng e to nd r pais t Ba upt y Cour ad e Coa s sie i d ls ofr pa rie s w hi h am oun e t e r , he nkr c t opt d l on' t m ze i t e i t m , c td o at alof$1 250, i t t unlke Ha v a Dougls Coas ç ovi d unc r re ot 9, notng ha , i r ey nd a , lon i de pr ontove td v l e f rwha i wo l c s t fn s termann rp i i ms' J. Th Ba krp c Co r au s o tt ud o t o iih h e iig e ar t . # ) e n u ty u t e '( t a r gae t c i c t ( 2, t $1 000pl $1 250)t arvea at a c tt hen gg e td he urng oss $1 000 o 8, us 9, o ri t otl os o c er of$31250t $37, (--a 1 ) TheBa upc Cour s lce Dougl ' ur ange , o 250. J . t 69. 4 nkr ty t ee td as $ 900 fgur r a di t pr ry' vauei ar vatd sa ea t n s r c e t r par 249, i e eg r ng he ope t s l n eno e tt nd he ubta t d he e i c ssfo t tfg r .(d) Th s t eBa k u tyCo r f u dt a t ea pr xmaec re t o t r m ha iu e 1 . u ,h n rp c u t o n h t h p o i t u rn val oft pr rywasbewe n$21 650t $21 65 (d Theef e be us t ue he ope t t e 2, o 8, 0. L=) r or, ca e he Ba u cy Co tf nkr pt ur ound t tt r wasa e t c hi ofbe we n $4, t $1 65 i ha he e n quiy us on t e 650 o 0, 0,t de e m i d t tt BB& T N ot r m ai d pa ta l s c ed. Fort sr s t Ba t r ne ha he e e ne r i ly e ur hi ea on, he nknl cy pt Cour c l d t tt de or c d nota d BB& T' le t onc ude ha he bt s oul voi s i n. The de o st n fl d a tm el no i ofa pe l Bot pa te s bs ue l s it bt r he ie i y tce p a . h r i s u eq nty ubm ted a albref a t c t he hea d or la g e t ppe i s nd he our t n r a r um n . D I USSIO N SC 1. LegalSt andard Th c u t se s sa p lae u idcino e ti matrp rua t o2 U. C. 1 8 a. e o r po s s e p elt j rs ito v r hs te u s n t 8 S. j 5 () A dititco tr vi aba r pt y c tsf c ua fndi f cea e r a isl al src ur e ews nk u c our' a t l i ngs or l r ror nd t eg c l i denovo.I r M e e t 5 F. 372,375( hCi. oncusons n e r dih, 27 3d 4t r 2008)(ii I r Ki ic ctng n e elsh, 258F. 31 319( hCi. );I r W hie, 7F.d 1 204( hCi.2007) A fcua 3d 5, 4t r 2001) n e t 48 3 99, 4t r . at l f ndi i c ea l e r i ng s l ry r oneous i d her vi w i c ton t e tr e de e i l f w ih t de i t f ' e e ng our t he n ie vi nc s e t t he fnie 3 Ha v y C tmaedt tkiche a inc woul c tbewe n $2y a $3, . ( c e No. - a 8 , r e Si t ha t n ppla es d os t e 000 nd 000 Do k t 34 t 6 l 8) 6. 6 and fr c c i t ta mit ha be n c im onviton ha sake s e omm it d. Unie St esv. S.Gyps Co. 333 te ' ' t d at U. um , U. 364,395( 48 .l Cheeaet pemisbl viwsoft e de ,t fcfnde' S. 19 ) f t r r wo r si e e t he vi nce he a ti rs choi e be w e n t c t e hem ca nnotbe cl a l e r ous' A nde s v.Ciy ofBes e e Ciy. . , e r y r one . ' r on t s m r t N C. 470U. 5 574( 98 ( tngUnie Stt v. low Ca Co.338U. 338,342( 949). S. 64, 1 5) cii td aes Yel b , S. 1 ) W he r vi w i fndi off c , t r ga d s l be g ve t t o r uniy oft ba n e e ng i ngs a t 4due e r ha l i n o he ppo t t he nknl c pt y c u toj d et ece iii o wi e s s' Fe . Ba k . 8 3 o r t u g h r dblt f t se . d R. n r P. 01 . y n ' l1. A nal i ys s I ge r ,t a pe l nt r i e t e a g e t on a n ne al he p la s a s hr e r um n s ppea ,na e y, ha t Ba u t y l m l t t he nkr p c Co tce ryerdby( )mii eprtngceti e de ea f rhennor f usngo t ur la l re 1 sntr ei ran vi nc nd, u t e, oc i n he wr evi ncei rac ngisvauai fg e,2)c c ai i re tyt c tt c e ong de n e hi t l ton iur ( alultng ncor cl he os o ur a mounta ( af di ce biiyt t val to tsi nyofCoas Thec t l , nd 3) for ng rdi lt o he uain etmo lon. our wil ad es e ch oft s a g e sbel . dr s a he e r um nt ow A. Bankrupt C ourtm i i erpret e dence and focus on w rong evi cy s nt ed vi ed dence l tal t a la sa g es e i lyt tt Ba u c Cour m ii e r t d c ti nii ly, he ppel nt r ue s ntal ha he nkr pt y t sntm e e eran evi nc and,f t r or ,f us d on t w r e de e i a vi a is va ua i tgur f de e ur he m e oc e he ong vi nc n ni ng t t l ton i e or t pr pery. Fis ,t ap la sc ii z t Ba nl c Cour ' sat m e t ti w a ne ry he o t r t he pe l nt r tci e he nk pt y ts t e nt ha t s a l i mpos i e' o l a ed ope tesi a smia ge r phi r gi n t ta esm ia i sz a i a ' i sbl't oc t l pr ri n i l r og a c e o ha r i lr n i e nd n smia saeofdirpar'ot de or'pr ry( c tNo.3- a 1 ,co e ngt t i lr tt se i't he bt s opet Do ke 4 t 67) ntndi ha H a ve t s ii d t the f r y e tte ha ound a pr ry i a c pa a e s a e ofdi r pa r t La m a Roa ope t n om r bl t t s e i- he y n d p o ry.(d a 7 -7 . Th a p l ns o j cint t i fcu li d n b t eBa krpc rpet I . t 5 6) e p el t' b e to o hs a ta tn i g y h n u ty a Cour pr ve una ii ast c ti notl f wih t de i t c c i t tt Ba upty t o s valng, he our s e t t he fnie onviton ha he nkr c Cour c m it d a m it ke i r a ng t s fndi Eve H a ve ac t om te s a n e chi hi i ng. n r y know l dged t tt r w e e e ha he e r noiea edif rnc bewe nt La nRoa prpet a t de or 'pr ry.(d tc bl fee es t e he yma d o ry nd he bt s ope t L=) 7 Furhe r , hec tnot t dr si saeofdir part tc r c e i d t de or 'pr ry. t nno e t our es he a tc t t se i ha ha a t rze he bt s ope t (d a 7 , 6 7 1 4. W hl teBa k p c Co r mih h v be nj tie i f c sn o t e l . t 3 9 -9 , 1 ) ie h n nlty u t g t a e e usi d n o u ig n h La a Roa pr r y,t c tr cog z t t i t he e a e t o pe m i s bl vi w soft ym n d ope t he our e ni es ha , f t r r w t r si e e he evi nc t f c fnde ' c c bewe n t m c nnotbe ce ry e r ous' Ande s 470 de e, he a ti r s hoie t e he a la l rone . ' r on, U. a 574(iai omitd) S. t ctton te . Se ond,t a la scontnd t tt val oft i pr ry wo d ha bee mor c he ppe lnt e ha he ue her ope t ul ve n e ac ur t y de e m i d i t Ba u cy Cour had f e on t t tm ony r a di f i c a el t r ne f he nkr pt t ocus d he esi eg r ng a r m a ke val ,r t rt t s cul tve t tm on c nc r ng f ur ls i prc t t r t ue a he han he pe a i esi y o e ni ut e i tng i es ha c t m pl t t c pl ton oft nec s r r nova i . l t s m e ve n,t a l nt on e a ed he om e i he es a y e tons n he n i he ppela s a g t t es e ily,t Bankr c Cour mico tue c ti t tmony a e pl d a r ue ha , s nta l he upty t s nsr d era n esi nd m oye vaua i f l ton onnul t t co r r t t Bal u t y Cour' belef wasnote oye by alt r a ha , nta y o he rkr p c ts i , mpl d l h ee oft vaua i wines e . Thes a g e slke s f i. Ast Ba nz c Cour n e i is he l ton t s s e r um nt i wie a l he nk pty t ot d n t or r t s ngul rc a t roft pr pery a t a e ofc pa a e pr pe te tm a de , he i a har c e he o t nd he bs nce om r bl o ri s t ke d tr ni t a opraevauepa tc al dfi ul. ( ke No.3- a 1 ) I t eemi ng he ppr it l riulry itc t' Doc t ' 4 t 66. n he e r i e ofisdi c e i t Ba u c Cour a ed t va ua i f m ul t ti c i r d xe c s t s r ton, he nkr pt y t dopt he l ton or a ha t ons de e m os s t bl t t u que s t i bef e i .Tha t a la s ort scour f t tm a t r t uia e o he ni iuaton or t t he ppe l nt , hi t or ha te , m i di a e w ih t Ba ght s gr e t he nknz c Co tsva ua i f m ul i no e pt y ur ' l ton or a s t nough t c e rt hi o l a he gh hur e e t bls u rt c e re r s a r dl s a ihed nde he l a r or t nda d. B. Bankrupt C ourti cy ncorrecty cal at costt cure am ount l cul ed o Next t a la sc lenget Ba upty Cour' c c ai oft c t asocit , he ppe lnt hal he nkr c ts alulton he oss s aed w ih r paii t pr ry. Fis ,t y a gue t tt Ba upt y Cour c ea l e r whe i t e rng he ope t r t he r ha he nkr c t l ry r ed nt a sgne ar ngeof$1 000t $1 000t Havey' esi t cos t c et kic n.Thi si d a 2, o 8, o r s tmaed t o ur he t he s a gum e lke i e fndsno t a ton. Alhough Ha v y' t s i ony c r nt i w s i rci t r e s e tm once ni t kic r ng he t hen 8 r paisc d be i e pr t d ass e r oul nt r e e uppori ahi h-nd fndi of$18, 0,hec tno est thi tng g e i ng 00 t our t ha s t s i ony c d a s be i e pr t d ass ppo tng a r nge ba e ûndi - l a v t s ii d t t e tm oul l o nt r e e u ri a - sd ng - r ey e tte ha l t ekthe rp isc ul l e 1 , 0t o sn d las' I a 8 . l a ye e t ti a g me t h i n e ar o d t 5 2 h u a d o lr. d. t 0) n n v n,h s r u n c b '( pr sir l va .Eve gi ng t de or t be ttofs r c i t hi hertgur fom t ove re e nt n vi he bt s he nei ubta tng he g i e r he pr ry' va ue t pr t i s ilw o t m or ,a c di t t Ba u c Cour ' fndi , ope t s l , he opery s tl r h e c or ng o he nkr pt y ts i ngs t n t a ot owed on t Co r w i e N ot . ha he m mt he unt y d e Se ond,t a la sco e tt Ba upt Cour ' de s on t i no e t tm ony f o c he ppe l nt nt s he nkr cy ts ci i o g r es i rm bot Have a Dougl r r ngne drpar t t hea pump.(d. 8 ,99,1 . h r y nd as egadi ede e is o he t 1 at 6-87 51) A fe a e i H a ve s c tt c e e tm a e r r ng t kic n, he Ba u cy Cou t t r cc ptng r y' os o ur s i t ega di he t he t nkr pt r ado e Coa s s r pa r e tm a eson a loft r m a ni ie s how e r Coa s n' cos t pt d l on' e i s i t l he e i ng t m ' , ve , l o s t o c e fgtr m a no a l ur i ze de lowanc f t he tpum p abou whi h Ha ve a D ougl t tfe e or he a t c r y nd as es ii d. W hie t c tnot st tt Ba u c Co tsde s o t e l t c tofr pa r ng t l he our e ha he nkr pt y ur ' ci i n o xc ude he os e i i he he tpum p e r e a di postve i pa ton t out m e oft s c s ,4t e cour c om ia l a xe t d s ii m c he co hi a e h t onc t nty r cogni e t tt Ban upt y Cour e e t d t a e z s ha he kr c t l c e o doptCoalon' e tm a e r ga di t cos t s s s i t s e r ng he t o r pai t non- t he ie s The Ba upt y Cour ba e isdec s on on t f c t tCo s e r he kic n t m . nkr c t sd t ii he a t ha alon, unlke H a ve a D ougl , s o de unc r r e val s f r wha i w oul c tt fni h t i r y nd as ' vi d ontove t d ue o pr tt d os o i s he rmani rparie . (d. t1 ) Asdic s bel t scrdi lt deenni i mus be e i ng e i tms' I a 68. ' s used ow,hi e biiy t naton t a f de due r r by t scou t Fed. .Ba . 801 f or d ega d hi r. R nkr P. 3. 4 Ha v y esi tdt tt c tt r i t he pump woul r a $5,0 0 ( c e No. - a 8 - 7) r e tmae ha he os o epar he at d un bout 0 . Do k t 34 t 6 8 . Addi t s$5, fg et t r i ngr pai esi ts whieusngt hi e $1 000 fgur f t kic n ng hi 000 iur o he emani e r tmae , l i he gh-nd 8, i e or he the r is woul r cet vaueoft pr pet t $ 650- si ty l st nt $208000val oft epar, d edu he l he o ry o 207, lghl es ha he , ue he Countywi N o e Thi fndi woul r s ti t dee mi to t t de or c dhavea de BB& T' r de t . s i ng d e ul n he tr nain hat he bt s oul voi d s cl i whih,u a m, c ndert sr as ng, oul be r r wholy uns ur hi e oni w d ende ed l ec ed. 9 C. Bankr c C our i pr upt y t m oper y I c edi lt t C oal on' t s i ony l ent r biiy o s s e tm Fi ly, he a la s ur t scou tt c l t tt Bn u cy Cour c e ry e r na l t ppe l nt ge hi r o onc ude ha he nkr pt t l a l r ed w he i dim i s a i r di e Coal o se tm a esr ga di t c tt c e t kic n, t n t s s ed s nc e bl s n' s i t e r ng he os o ur he t he bu t n pr e ed t a he oc ed o doptCoa s s e tm a e r ga di t cos t e f c t no kic n r pa r . l on' s i t s e r ng he t o f e t he n- t he e i s The a la s a gue: ppe l nt r A r s bl ma coul nott ket e tmaesofM r Coas s rousy whe t s ea ona e n d a he si t . lon e i l n hi a a s r be i ves t t f c co e t a Lowes syl c bi t woul be i ppr i e le ha onni a unt rops nd t e a ne s d n lne wih ahous oft snaur M r Coas sa oa h fom hi a yssoft i t e hi t e. . lon' ppr c r s nal i he kic n a is r quie e s cl a l s t he nd t e r m nt , e r y how t thi i a of sa i ba k t t rt ha s de l p t c oge he he c a t w a pos i e i t a oa h t t he t k t a d t cos s obt ne on he pes y sbl s he ppr c ha oo ow r he t ai d t shous . hi e ( c tNo.1 a 8 ) Do ke 3 t -9. W hl teBa ku tyCo r mih r ao a l h ved tr n dt rj c alo Co lo s ie h n rp c u t g t e s n by a eemie o ee t 1 f as n' t tm ony, he f tt ti c e nott do s doe no a ountt cl are r . The c tnot t t es i t ac ha t hos o o s tm o e r or our es ha , es ci ly r ga di f t fndi on w ine scr di lt i r r s l be gi t t pe a l e r ng ac ual i ngs t s e biiy, t due ega d ha l ven o he o p ru iyo t eb n r p c c u toj d etec e iii o win s e . Fe R. n r P. p o tnt f h a k u ty o r t u g h rdblt f te s s' d. Ba k . y ' 8 3. l s m pl w asnotunr a ona e f rt Ba r pt y Co tt co ude t tt hous c d 01 t i y e s bl o he nk u c ur o ncl ha he e oul ber nde e ma ke a ewih ls t n t oft lnema e il .Asexpl ne a e r d r t bl t e s ha op he i t ra s ai d bove, heme e t r f c t tt a l nt , t s c t ort tm a t r m i htdiag ee i s m pl nots tc e t a t ha he ppela s or hi our f ha te , g s r si y ufi i nt o i mpugn t Ba u c Cour ' cr di lt de e mi tons he nkr pty ts e biiy t r nai . C O N CLUSI N O Fort f egoi r as ,t c r c l he or ng e ons he ou t onc udest tt Ba upt y Cour di no c m i ha he nkr c t d t om t r ve s bl c e e r i is f c ua fndi g conc r ng t va ue oft de or ' ope t e r i e l ar r or n t a t l i n e ni he l he bt s pr ry. A ccor ngl t Bankr cy Courtsdeci on and or t t BB& T N ot i partaly s ed di y, he upt ' si der hat he e s i l ecur a t us t tt deb or ma nota d BB&T' cai mus be a fr nd, h ,ha he t s y voi s l m, t fimed. The Cl r i diec e t s nd c r i e co e oft sm e or ndum opi on a t e k s r t d o e e tt d pi s hi m a i ni nd he a om pa ng or rt a lc cc nyi de o 1 ouns lofr or e ec d. $' sENTER:Thi t' d yo o zt o o sx s . a f . . ) . . f r al , t11 . . l Chi fUnie St t s Di t i tJ e e t d a e s rc udg 11

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