In re John Richards Homes Bldg. Co.
| Decision Date | 27 October 2011 |
| Docket Number | No. 02–54689–R.,02–54689–R. |
| Citation | 461 B.R. 1,55 Bankr.Ct.Dec. 207 |
| Parties | In re JOHN RICHARDS HOMES BUILDING CO., L.L.C., Debtor. |
| Court | U.S. Bankruptcy Court — Eastern District of Michigan |
OPINION TEXT STARTS HERE
Arthur O'Reilly, Detroit, MI, Judy B. Calton, Honigman, Miller, Schwartz & Cohn, LLP, Detroit, MI, Martha J. Olijnyk, Rochester, MI, Norman C. Ankers, Detroit, MI, Robert B. Weiss, Detroit, MI, Scott A. Wolfson, Wolfson Bolton, PLLC, Troy, MI, for Debtor.
Upon remand from the district court, this matter is again before the Court on the “Application of Honigman Miller Schwartz and Cohn for Second Award of Attorney Fees and Expenses.” The Honigman firm represented the alleged debtor, John Richards Homes Bldg. Co., L.L.C., (“JRH”) throughout this failed involuntary bankruptcy proceeding that the petitioning creditor, Kevin Adell, filed. The dismissal of the petition ultimately resulted in a judgment under 11 U.S.C. § 303(i) against Adell and in favor of JRH in the amount of $6.4 million. See In re John Richards Homes Bldg. Co., L.L.C., 291 B.R. 727 (Bankr.E.D.Mich.2003). The Honigman firm also represented JRH in Adell's several appeals from the judgment, as well as in attempting to collect on the judgment and in Adell's own failed bankruptcy in Florida.
The fee application seeks an award against Adell for fees of $1,500,919.75 and expenses of $212,054.29. Initially, the Court denied the application on the grounds that 11 U.S.C. § 303(i)(1) does not allow an award of attorney fees for services provided after the judgment awarding damages under § 303(i), such as the application sought. See In re John Richards Homes Bldg. Co. L.L.C., 2006 WL 3228523 (Bankr.E.D.Mich.2006).
The district court vacated that order and remanded the matter. See Honigman Miller Schwartz & Cohn. L.L.P. v. Adell (In re John Richards Homes Bldg. Co., L.L.C.), 405 B.R. 192 (E.D.Mich.2009).
Following the remand, the Honigman firm filed a supplement to the application seeking additional fees of $279,465.21, plus $39,273.91 in expenses.
Accordingly, the total now sought is $2,031,713.16.
For the reasons stated herein the applicant is allowed attorney fees and costs in the reduced amount of $1,854,192.73.
Also before the Court on remand is JRH's “Motion for Assessment of Additional Punitive Damages Based on Post–Award Conduct.” This Court had denied this motion on the grounds that the § 303(i) judgment was not a court order and that therefore Adell's actions in avoiding the judgment were not sanctionable as violations of a court order. In re John Richards Homes Bldg. Co., L.L.C., 2006 WL 3230009 (Bankr.E.D.Mich.2006).
The district court also vacated that order and remanded the matter. John Richards Homes Bldg. Co., L.L.C. v. Adell (In re John Richards Homes Bldg. Co., L.L.C.), 404 B.R. 220 (E.D.Mich.2009).
Upon remand, the Court conducted an evidentiary hearing. For the reasons stated herein, the Court now concludes that the motion should be granted and that a sanction of $2,800,000.00 should be awarded against Adell in favor of JRH.
The procedural history of this case is overwhelming. Fortunately, it is unnecessary to review it in detail here. That history is well reviewed in the following thirty-one published and unpublished decisions from the bankruptcy courts, district courts and courts of appeals serving Michigan and Florida, as well as the United States Supreme Court:
1. In re John Richards Homes Bldg. Co., L.L.C., 291 B.R. 727 (Bankr.E.D.Mich.2003) ().
2. In re John Richards Homes Bldg. Co., L.L.C., 298 B.R. 591 (Bankr.E.D.Mich.2003) ().
3. In re Adell, 2004 WL 1243396 (Bankr.M.D.Fla. March 9, 2004) ().
4. In re Adell, 310 B.R. 460 ().
7. In re Adell, 2004 WL 2931393 (Bankr.M.D.Fla. October 1, 2004) ().
8. In re Adell, 2004 WL 2931390 (Bankr.M.D.Fla. October 15, 2004) ().
10. In re Adell, 321 B.R. 562 (Bankr.M.D.Fla.2005) ().
11. In re Adell, 321 B.R. 573 (Bankr.M.D.Fla.2005) ().
12. In re Adell, 325 B.R. 883 (Bankr.M.D.Fla.2005) ().
13. In re Adell, 328 B.R. 845 (Bankr.M.D.Fla.2005) ().
14. In re Adell, 328 B.R. 850 (Bankr.M.D.Fla. 2005) ().
15. In re Adell, 332 B.R. 844 (Bankr.M.D.Fla. October 4, 2005) ().
16. In re Adell, 343 B.R. 717 (Bankr.M.D.Fla.2006) ().
18. In re John Richards Homes Bldg. Co., LLC, 346 B.R. 762 (Bankr.E.D.Mich.2006) ().
19. In re John Richards Homes Bldg. Co., L.L.C., 2006 WL 3230009 (Bankr.E.D.Mich. September 21, 2006) ().
20. In re John Richards Homes Bldg. Co., L.L.C., 2006 WL 3228523 (Bankr.E.D.Mich. September 21, 2006) ().
21. Adell v. John Richards Homes Bldg. Co., L.L.C, 549 U.S. 818, 127 S.Ct. 85, 166 L.Ed.2d 31 (2006) ().
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