611 B.R. 619 (8th Cir. BAP. 2020), 19-6029, In re Paczkowski

Docket Nº:19-6029
Citation:611 B.R. 619
Opinion Judge:NAIL, Bankruptcy Judge.
Party Name:IN RE: Michael M. PACZKOWSKI, as surety for P & L Concrete Stamping, as surety for DRMP Concrete, LLC, as surety for Complete Exteriors, LLC, as surety for RRGMP Concrete, LLC, as surety for Stamped Concrete, Ltd., Debtor Michael M. Paczkowski, Debtor-Appellant v. Casey Garven; Gina Garven; DRMP Concrete, LLC, Movants-Appellees
Attorney:Counsel who represented the appellant was Nathan Myrum Hansen of Saint Paul, MN. Counsel who represented the appellee were Jeffrey D. Klobucar, of Saint Paul, MN. And Daniel R. Olson of Minneapolis, MN.
Judge Panel:Before SCHERMER, NAIL, and DOW, Bankruptcy Judges.
Case Date:February 13, 2020
Court:United States Bankruptcy Courts, Eighth Circuit

Page 619

611 B.R. 619 (8th Cir. BAP. 2020)

IN RE: Michael M. PACZKOWSKI, as surety for P & L Concrete Stamping, as surety for DRMP Concrete, LLC, as surety for Complete Exteriors, LLC, as surety for RRGMP Concrete, LLC, as surety for Stamped Concrete, Ltd., Debtor Michael M. Paczkowski, Debtor-Appellant

v.

Casey Garven; Gina Garven; DRMP Concrete, LLC, Movants-Appellees

No. 19-6029

United States Bankruptcy Appellate Panel of the Eighth Circuit

February 13, 2020

Submitted: January 31, 2020

Page 620

Appeal from United States Bankruptcy Court for the District of Minnesota - Minneapolis

Counsel who represented the appellant was Nathan Myrum Hansen of Saint Paul, MN.

Counsel who represented the appellee were Jeffrey D. Klobucar, of Saint Paul, MN. And Daniel R. Olson of Minneapolis, MN.

Before SCHERMER, NAIL, and DOW, Bankruptcy Judges.

OPINION

NAIL, Bankruptcy Judge.

Michael M. Paczkowski ("Debtor") appeals the September 19, 2019 order of the bankruptcy court granting Casey Garven, Gina Garven, and DRMP Concrete, LLC ("DRMP") relief from the automatic stay. For the reasons discussed below, we must dismiss this appeal.

BACKGROUND

The Garvens contracted with Debtor and DRMP for certain home repairs and improvements. Unhappy with the results, the Garvens sued Debtor and DRMP in state court and obtained a default judgment against them.

At the Garvens’ request, the sheriff levied a writ of execution on Debtor’s ownership interest in DRMP and scheduled an execution sale. At the execution sale, the Garvens purchased Debtor’s ownership interest and became the sole owners of DRMP.

Page 621

Upon learning of the execution sale, Debtor allegedly began withdrawing assets from DRMP and transferring them to a different entity. Debtor then filed a petition for relief under chapter 7 of the bankruptcy code.

On the Garvens and DRMP’s motion, and over Debtor’s objection, the bankruptcy court lifted the automatic stay to allow the Garvens and DRMP to commence a state court action against Debtor and related third parties to avoid the allegedly fraudulent transfers. Debtor timely appealed.

DIS...

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