In re Weinhold
In re Weinhold
Opinion of the Court
THIS CASE came on for hearing on July 11, 2019, at 10:30 a.m., on Carolina *514Preservation Partners, Inc. and Douglas Smith's Motion for Contempt.
Even so, the Debtor sued the chapter 7 trustee, along with Carolina Preservation Partners and Douglas Smith, in North Carolina seeking a declaration that he is the sole owner of the 80% limited partnership interest and the 20% general partnership interest in Wolf's Lair.
Because those two allegations were untrue, Carolina Preservation Partners and Douglas Smith asked this Court to reopen this bankruptcy case and find that Carolina Preservation Partners acquired the 80% limited partnership interest in Wolf's Lair; the chapter 7 trustee became the owner of the 20% general partnership interest in Wolf's Lair; and that WLAE, LLC acquired 100% of Wolf's Lair under a settlement agreement with the chapter 7 trustee.
• as of the petition date, the Debtor owned an 80% limited partnership interest in Wolf's Lair and that the limited partnership interest became part of the bankruptcy estate
• the Debtor also owned a 20% general partnership interest in Wolf's Lair and that the general partnership interest became part of the bankruptcy estate.
• the chapter 7 trustee administered the Debtor's 80% limited partnership interest
• the chapter 7 trustee administered the Debtor's 20% general partnership interest
• the 1,400 acres of land (along with associated timber rights) belonged to Wolf's Lair or its successor
• The Debtor signed a written satisfaction of all obligations the Trustee owed to him.7
*515In response, the Debtor asked the Court to find that Wolf's Lair continued to own the 1,400 acres (and the timber rights) or, in the alternative, to grant him leave under the Barton doctrine to sue the chapter 7 trustee to quiet title.
So what was the state of affairs after the ruling on appeal? The Debtor had a lawsuit pending in North Carolina that was predicated on allegations that he, at all times, owned both the 80% limited partnership interest and the 20% general partnership interest in Wolf's Lair. But the district court had just affirmed Judge Glenn's order finding that the Debtor's 80% limited partnership interest and 20% general partnership interest became property of the estate; that the chapter 7 trustee sold the 80% limited partnership interest and 20% general partnership interest in Wolf's Lair; and that the 1,400 acres of land and any timber rights belonged to Wolf's Lair or its successor.
There's no question, then, that the district court order affirming Judge Glenn's six findings negated the central allegations of the Debtor's North Carolina action. Not to mention the district court affirmed Judge Glenn's refusal to grant the Debtor leave under the Barton doctrine to sue the chapter 7 trustee. Given that, Carolina Preservation Partners and Smith requested that the Debtor dismiss the North Carolina action.
This Court has the inherent power to hold a party in contempt if necessary to enforce compliance with its orders.
Here, Judge Glenn expressly declined to grant the Debtor permission to sue the chapter 7 trustee and expressly found that the Debtor's 80% limited partnership interest and 20% general partnership interest in Wolf's Lair became part of the bankruptcy estate and were later administered by the chapter 7 trustee. Once Judge Glenn's rulings were affirmed on appeal, the Debtor had one obligation: dismiss his North Carolina action. The Debtor obviously had the ability to do so. But, despite Judge Glenn's unambiguous rulings, the Debtor refused to dismiss his North Carolina action.
Accordingly, it is
ORDERED :
1. The Motion is GRANTED.
2. The Debtor is hereby in contempt of this Court's prior orders.
3. To purge his contempt, the Debtor must dismiss the North Carolina action styled Wolf Arbin Weinhold, et al. v. Douglas A. Smith, et al. , Case No. 17-CVS-958, pending in the General Court of *516Justice, Superior Court Division, Henderson County, North Carolina, with prejudice.
4. The Debtor must also dismiss with prejudice the claims he filed in the lawsuit pending in Sarasota County, Florida, styled Douglas A. Smith v. Wolf Arbin Weinhold , Case No. 2012-CA-003187-NC.
5. The North Carolina action and the claims in the Sarasota action must be dismissed within 30 days of this Order. If the Debtor fails to dismiss the North Carolina action and his claims in the Sarasota action with prejudice within 30 days of this Order, he will be fined $1,000 per day until he complies with this Ordere. If the $1,000 per day fine is not sufficient to promptly ensure compliance with this Order, the Court will issue a bench warrant for the Debtor's arrest.
6. The Court retains jurisdiction to enforce this Order.
Doc. No. 470 ("Motion").
Carolina Preservation Partners acquired the 80% limited partnership interest in Wolf's Lair; WLAE, LLC acquired the 20% general partnership interest in Wolf's Lair.
Doc. 422, Ex. A.
Id.
Id. ; Doc. 429.
Doc. No. 430.
Doc. No. 406.
Doc. 434.
Doc. 469.
Doc. 470, Ex. B.
Doc. 470, Ex. C.
In re Ocean Warrior, Inc. ,
SEC v. Kirkland ,
Reference
- Full Case Name
- IN RE: Wolf Arbin WEINHOLD, Debtor.
- Status
- Published