In re Robinson

• Decision Date: 17 April 2007
• Docket Number: No. 2:05-bk-13915M.,2:05-bk-13915M.
• Citation: 368 B.R. 805
• Parties: In re Tommy F. ROBINSON, Debtor.
• Court: U.S. Bankruptcy Court — Eastern District of Arkansas

368 B.R. 805

In re Tommy F. ROBINSON, Debtor.

No. 2:05-bk-13915M.

United States Bankruptcy Court, E.D. Arkansas, Helena Division.

April 17, 2007.

Sheila F. Campbell, Sheila Campbell, P.A., Little Rock, AR, for Debtor.

Frederick S. Wetzel, Frederick S. Wetzel, P.A., Little Rock, AR, trustee.

ORDER OF CONTEMPT

JAMES G. MIXON, Bankruptcy Judge.

The Debtor Tommy F. Robinson ("Robinson") is a resident of Brinkley, Monroe County, Arkansas. Roy C. Lewellan ("Lewellan") is an attorney duly licensed to practice in this Court and is a resident of Marianna, Lee County, Arkansas. On December 21, 2006, Wildlife Farms II, LLC a/k/a Mallard Pointe Lodge and Reserve, LLC ("Wildlife Farms"), William Thompson ("Thompson"), and Boyd Rothwell ("Rothwell") filed a motion for an order of contempt against Robinson, Carolyn Robinson, Greg Robinson, Jeff Robinson, Ag Pro Farms of Arkansas, Inc., Ag Pro Farms, II, and Lewellan for violating a restraining order that was entered by this Court on July 28, 2006. (Bankruptcy Case 2:05-bk-13915, Motion for Contempt, 12/21/06, docket entry number 235.)

Trial on the motion for order of contempt was held in Helena-West Helena, Arkansas, on February 26, 2007, and at the conclusion of the hearing the Court found Carolyn Robinson, Greg Robinson, and Jeff Robinson were not in civil contempt. (Tr. 02/26/07 at 188-189.) However, Robinson and Lewellan were found to be in civil contempt for the reasons stated in open Court. (Tr. 02/26/07 at 189-190 and Order Granting Mot. for Contempt, 2/27/07, docket entry number 266.) Robinson and Lewellan were ordered remanded to the custody of the acting United States Marshall until they purged themselves of civil contempt by complying with the Court's instructions stated in open Court. (Tr. 02/26/07 at 190.)

At the conclusion of the hearing the Court announced its intention to impose criminal contempt sanctions against Robinson and Lewellan. (Tr. 02/26/07 at 191.)

Robinson and Lewellan purged themselves of civil contempt the next day on February 27, 2007, and an order was entered releasing Robinson and Lewellan from custody. (Bankruptcy Case 2:05-bk-13915, Order that Tommy Robinson and Roy C. Lewellan have purged themselves of civil contempt by delivering the required certified document, 02/27/07, docket entry number 267.)

I. BACKGROUND

The record in this proceeding includes a letter opinion written by the Honorable Bentley E. Story, Circuit Judge, Division Three, First Judicial Circuit of Arkansas, Monroe County, which contains a thorough and well-written history of events leading up to the various bankruptcy proceedings. (Creditor's Ex. 21 A.) According to the letter, Robinson has a B.A. Degree in Criminal Justice and served in law enforcement jobs for several years. (Creditor's Ex. 21 A. at 9.) He was sheriff of Pulaski County for four years and elected as a member of the United States Congress for a period of time. (Creditor's Ex. 21 A. at 9.)

The letter opinion stated that since 1988 Robinson had farmed land in Monroe County near Brinkley, Arkansas. (Creditor's Ex. 21 A. at 9.) He leased this land through a partnership known as Ag-Pro Farms, which was owned by Robinson and his family, from an entity known as Ag-Pro Farms, Inc. of Wyoming. (Creditor's Ex. 21 A at 3.) Robinson was president of Ag-Pro Farms, Inc. of Wyoming, but not a shareholder. (Creditor's Ex. 21 A at 3.) Ag-Pro Farms, Inc. of Wyoming was owned by the Stephens family of Little Rock, Arkansas. (Creditor's Ex. 21 A at 3.)

During the time Robinson operated Ag-Pro Farms he also operated a hunting business known as Cache River Deer and Duck Hunting, Inc. (Creditor's Ex. 21 A at 4.) A small lodge was located on the land and one of his principal clients was Stephens, Inc. of Little Rock, Arkansas. (Creditor's Ex. 21 A at 4.) Robinson arranged with Stephens, Inc. for its top clients to hunt and in exchange Robinson was paid $75,000.00 a year in September, a bonus of $25,000.00 after duck season, and additional bonuses. (Creditor's Ex. 21 A. at 9.) While Robinson's duck and deer hunting business was successful, Robinson suffered farm losses of $500,000.00 per year in the past. (Creditor's Ex. 21 A. at 9.)

When Robinson announced that he intended to run for Congress against incumbent Congressman Marion Berry he was notified that his long-standing option to purchase the land, which was to run until 2008, was accelerated and Robinson was given a 30-day deadline. (Creditor's Ex. 21 A at 3 & 20.) Thereafter, Robinson, his wife, sons, and Thompson formed Ag-Pro Farms of Arkansas, Inc. (Creditor's Ex. 21 A at 3.) Thompson held 52% controlling interest in the new corporation. (Creditor's Ex. 21 A at 4.)

On March 18, 2002, Ag-Pro Farms of Arkansas, Inc. acquired title to a 2,415 acre tract of land from Ag-Pro Farms, Inc. of Wyoming for the sum of $1,890,623.00, money that was borrowed from First State Bank of Lonoke. (Creditor's Ex. 21 A at 4.)

On June 20, 2002, Wildlife Farms was formed. (Creditor's Ex. 21 A at 4.) One-third of Wildlife Farms was owned by DBJ Investments, LLC, one-third was owned by B & L Thompson Investments, LLC, and one-third was owned by Ag-Pro Farms of Arkansas, Inc. (Creditor's Ex. 21 A, p. 4.) At that point, Ag-Pro Farms of Arkansas, Inc. was solely owned by Robinson and his family because Thompson had cancelled his interest in the entity. (Creditor's Ex. 21 A at 4.)

Wildlife Farms then borrowed $2,950,000.00 to purchase the 2,415-acre farm and an additional 120 acres. (Creditor's Ex. 21 A at 4.) The purpose of the creation of Wildlife Farms was to construct and operate an upscale hunting operation. (Creditor's Ex. 21 A at 21.)

Wildlife Farms agreed to lend Robinson's entity, Ag-Pro Farms of Arkansas, Inc., $175,000.00 secured by a security interest in Ag-Pro Farms of Arkansas, Inc.'s interest in Wildlife Farms. (Creditor's Ex. 21 A at 4-5.) Of the $175,000.00 loan proceeds to Ag-Pro Farms of Arkansas, Inc., $100,000.00 was used to pay an obligation of Robinson at Community Bank and the other $75,000.00 was used in Robinson's farming partnership. (Creditor's Ex. 21 A at 5 & 18.)

Judge Story's letter opinion recounts numerous instances of strife, threats of violence, and quarreling among the parties owning interests in Wildlife Farms. (See Creditor's Ex. 21 A.) On November 19, 2002, litigation commenced in the Circuit Court of Monroe County, Arkansas, when Robinson and his family filed the initial complaint. (Creditor's Ex. 21 A at 5.) Litigation consisted of complaints, counterclaims, and claims of setoff, all of which were resolved by Judge Story's letter opinion of November 2004, which was, in general, mostly unfavorable to Robinson and his family. (Creditor's Ex. 21 A.) The Circuit Court found, among other things, that the $175,000.00 debt owed by Ag-Pro Farms of Arkansas, Inc. was in default and ordered the entity's one-third interest in Wildlife Farms sold pursuant to Arkansas law unless the judgment was paid in ten days. (Creditor's Ex. 21 A at 23-24.)

II. BANKRUPTCY

On September 3, 2004, before any final judgment could be entered of record, Ag-Pro Farms of Arkansas, Inc. filed a voluntary petition for relief in this Court under the provisions of Chapter 11 of the United States Bankruptcy Code. (Creditor's Ex. 20; Bankruptcy Case 2:04-bk-20447, Chapter 11 Voluntary Petition, 09/03/04, docket entry number 1.)

The schedules filed in the Chapter 11 case listed a disputed debt of $175,000.00. (Bankruptcy Case 2:04-bk-20447, Deficient Schedules, 10/06/04, docket entry 23.) The assets, valued at $2,277,333.33, were described as a one-third interest in a 2,500-acre farm in Monroe County, Arkansas, the sum of $194,000.00 for services rendered to Wildlife Farms, and a claim for crop damage. (Bankruptcy Case 2:04-bk-20447, Deficient Schedules, 10/06/04, docket entry number 23.) The shareholders were listed as Tommy and Carolyn Robinson. (Bankruptcy Case 2:04-bk-20447, Deficient Schedules, 10/06/04, docket entry number 23.)

On October 28, 2004, the case was converted to Chapter 7 on motion of the Debtor, Ag Pro Farms of Arkansas, Inc. (Creditor's Ex. 20 and Bankruptcy Case 2:04-bk-20447, Order and Notice of Conversion, 10/28/04, docket entry number 34.) On December 13, 2004, the Debtor consented to an Order granting relief from the automatic stay to permit Wildlife Farms to complete its foreclosure of its security interest and the Debtor's interest in Wildlife Farms. (Creditor's Ex. 9a.; Bankruptcy Case 2:04-bk-20447, Consent Order, 12/13/04, docket entry number 50.)

The Trustee declared the case a no-asset case and the case was closed June 1, 2005. (Bankruptcy Case 2:04-bk-20447, Bankruptcy Case Closed, 06/01/04, docket entry number 65.) On February 4, 2005, Judge Story entered an order approving a commissioner's sale of Ag-Pro Farms of Arkansas, Inc.'s interest in Wildlife Farms to Wildlife Farms for a credit bid of $223,774.26. (Creditor's Ex. 9a.)

Two of Robinson's business entities, Brinkley Truck & Tractor Towing & Recovery and Brinkley Truck & Tractor, Inc., also filed voluntary petitions for relief under the provisions of Chapter 11 on September 3, 2004.¹ (Bankruptcy Case 2:04-bk-20495, Chapter 11 Voluntary Petition, 09/03/04, docket entry number 1 and Bankruptcy Case 2:04-bk-20448, Chapter 11 Voluntary Petition, 09/03/04, docket entry number 1.)

On March 25, 2005, two involuntary petitions for relief under the provisions of Chapter 7 of the United States Bankruptcy Code were filed in separate cases against Tommy and Carolyn Robinson by Wildlife Farms, Rothwell, and Thompson. (Bankruptcy Case 2:05-bk-13915, Chapter 7 Involuntary Petition, 03/25/05, docket entry number 1 and Bankruptcy Case 2:05-bk-13916, Chapter 7 Involuntary Petition, 03/25/05, docket entry number 1.) Both Tommy and Carolyn Robinson were adjudicated Chapter 7 Debtors. (Bankruptcy Case 2:05-bk-13915, Order for Relief, 10/05/05, docket entry number 79 and Bankruptcy Case 2:05-bk-13916, ...