FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`FILED: KINGS COUNTY CLERK 01m2018 02:17 PM
`
`NYSCEF DOC. NO. 119
`NYSCEF DOC. NO. 119
`
`INDEX NO. 518372/2017
`INDEX NO~ 518372/2017
`
`
`
`
`
`RaCaIVaD VYSCEF: 01/03/2018
`RECEIVED NYSCEF: 01/03/2018
`
`
`
`
`
`EXHIBIT “”X
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`Filed
`05/04/12
`Entered
`11-00044
`Case
`Doc
`275
`05/04/12
`NYSCEF DOC. NO. 119
`nQgder
`Compliance
`Page
`Directing
`document
`below
`The
`
`WBFE
`
`is
`
`Dated:
`
`May
`
`3, 2012.
`
`INDEX NO. 518372/2017
`Main
`Desc
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`1 of 79
`
`'k
`
`':,.j,
`
`S. Martin
`
`Teel,
`
`Jr.
`
`U.S.
`
`Bankruptcy
`
`Judge
`
`UNITED
`FOR
`
`STATES
`DISTRICT
`THE
`
`COURT
`BANKRUPTCY
`OF
`COLUMBIA
`
`No.
`
`Case
`(Chapter
`Not
`for
`West's
`
`11-00044
`
`7)
`Publication
`
`Bankruptcy
`
`in
`Reporter
`
`) )
`
`)
`)
`)
`)
`
`Debtor.
`
`.
`
`In
`
`re
`
`W.A.R.
`
`LLP,
`
`AGAINST
`
`MEMORANDUM
`WADE
`
`A.
`
`DECISION
`ROBERTSON,
`
`RE
`
`IMPOSITION
`TY
`
`CLEVENGERr
`
`OF
`
`SANCTIONS
`RAY
`AND
`
`CONNOLLY
`
`This
`
`is
`
`a
`
`case
`
`in
`
`which
`
`Ty
`
`Clevenger,
`
`a member
`
`of
`
`the
`
`bar
`
`of
`
`this
`
`court,
`
`and
`
`Wade
`
`A.
`
`Robertson
`
`repeatedly
`
`advanced
`
`the
`
`frivolous
`
`argument
`
`that
`
`funds
`
`that
`
`W.A.R.
`
`LLP
`
`had
`
`lent
`
`to
`
`Robertson
`
`in
`
`exchange
`
`for
`
`promissory
`
`notes
`
`were
`
`property
`
`of
`
`the
`
`the
`
`debtor
`
`in
`
`this
`
`all
`
`estate
`
`of
`
`W.A.R.
`
`LLP,
`
`as
`
`bankruptcy
`
`case,
`
`for
`
`the
`
`purpose
`
`of
`
`causing
`
`delay
`
`and
`
`unnecessary
`
`expense
`
`for
`
`William
`
`C.
`
`Cartinhour,
`
`Robertson's
`
`adversary
`
`in
`
`a
`
`civil
`
`action
`
`in
`
`the
`
`district
`
`court.
`
`Pursuant
`
`to
`
`Fed.
`
`R.
`
`Bankr.
`
`P.
`
`9011,
`
`the
`
`court
`
`will
`
`impose
`
`a
`
`fine
`
`of
`
`$10,000
`
`each,
`
`payable
`
`to
`
`the
`
`clerk,
`
`against
`
`Clevenger
`
`and
`
`Robertson.
`
`In
`
`addition,
`
`the
`
`court
`
`will
`
`grant
`
`an
`
`award
`
`of
`
`fees
`
`utilizing
`
`Ray
`
`Connolly
`
`to
`
`as
`
`Cartinhour
`
`against
`
`Robertson
`
`for
`
`a
`
`purported
`
`creditor
`
`and
`
`party
`
`adverse
`
`to
`
`Robertson
`
`to
`
`advance
`
`arguments
`
`designed,
`
`in
`
`extreme
`
`bad
`
`faith,
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`05/04/12
`Filed
`11-00044
`Case
`Doc
`275
`05/04/12
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Page
`Document
`Compliance
`Directing
`
`INDEX NO. 518372/2017
`Main
`09:11:15
`Desc
`RECEIVED NYSCEF: 01/03/2018
`2 of 79
`
`vexatiously
`
`and
`
`wantonly
`
`to
`
`delay
`
`Cartinhour
`
`in
`
`his
`
`rights
`
`and
`
`to
`
`cause
`
`him
`
`undue
`
`litigation
`
`expense.
`
`I
`
`SUMMARY
`
`On
`
`November
`
`15,
`
`2010,
`
`Douglas
`
`Sims
`
`commenced
`
`the
`
`above-
`
`captioned
`
`bankruptcy
`
`case
`
`by
`
`the
`
`filing
`
`of
`
`an
`
`involuntary
`
`petition
`
`against
`
`Bankruptcy
`
`Court
`
`the
`
`for
`
`debtor,
`
`W.A.R.
`
`LLP,
`
`in
`
`the
`
`United
`
`States
`
`the
`
`Western
`
`District
`
`Tennessee.1
`
`of
`
`The
`
`case
`
`was
`
`transferred
`
`to
`
`this
`
`court
`
`on
`
`January
`
`4,
`
`2011.
`
`At
`
`the
`
`time
`
`the
`
`petition
`
`was
`
`filed,
`
`the
`
`relationship
`
`between
`
`W.A.R.
`
`LLP's
`
`two
`
`sole
`
`partners,
`
`Cartinhour
`
`and
`
`Robertson,
`
`had
`
`already
`
`in
`
`their
`
`contentious
`
`deteriorated,
`
`and
`
`the
`
`two
`
`were
`
`embroiled
`
`litigation
`
`in
`
`the
`
`United
`
`States
`
`District
`
`Court
`
`for
`
`the
`
`District
`
`question
`of
`this
`the
`There
`although
`longer
`responsible
`would-be
`that
`Response
`Court
`Ought
`Why
`Judicial
`Notice
`Robertson
`states
`been
`promised
`and
`
`was
`
`notes
`his
`
`to
`
`The
`purpose
`into
`
`sole
`wrench
`Robertson.
`that
`creditor
`Robertson
`most
`court
`Exhibit
`Show
`Request
`No.
`166),
`nor
`have
`preparation
`this
`bankruptcy
`instrumental
`
`finding,
`
`is
`
`prolific
`also
`A
`Cause
`
`for
`
`I
`
`petition,
`appears
`wonders
`compensation
`
`or
`
`to
`
`why
`
`any
`the
`
`of
`
`filing
`case."
`
`Aff.
`preparation
`the
`in
`instrumental
`not
`been
`have
`a
`Robertson
`for
`
`"friendly"
`
`attests
`work.
`
`such
`
`has
`
`been
`
`bankruptcy
`litigation
`enough
`court
`
`not
`
`the
`involved
`
`pending
`is
`
`no
`
`this
`for
`
`in
`
`raised
`case
`
`in
`was
`between
`evidence
`notes
`these
`
`in
`
`whether
`to
`and
`to
`
`the
`throw
`
`support
`
`a
`
`record
`
`petitioning
`
`and
`
`in
`
`drafting
`in
`
`for
`creditor
`Robertson's
`to
`Court's
`Not
`Impose
`& Affidavit
`that
`"I
`
`court
`Robertson
`Cartinhour
`the
`the
`that
`proceedings,
`the
`papers
`
`this
`
`have
`
`Ray
`
`Directing
`
`case,
`affidavit,
`Order
`Sanctions
`Wade
`of
`received
`with
`Chapter
`Robertson
`
`compensation,
`involuntary
`3.
`
`If
`
`3
`
`by
`
`the
`
`filed
`Connolly.
`attached
`
`as
`Robertson
`Him;
`
`Against
`(Dkt.
`Robertson
`no
`compensation,
`respect
`to
`7
`
`petition
`not
`
`was
`
`The
`
`to
`
`in
`
`the
`
`and
`
`filing
`effort
`any
`creditor
`fact
`the
`
`in
`
`to
`
`of
`
`to
`
`to
`that
`
`the
`involuntary
`what
`enlist
`the
`do
`so,
`he
`received
`
`court
`no
`
`2
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`05/04/12
`05/04/12
`Entered
`Filed
`11-00044
`Case
`Doc
`275
`NYSCEF DOC. NO. 119
`- Order
`Page
`Compliance
`Document
`Directing
`
`INDEX NO. 518372/2017
`09:11:15
`Desc
`Main
`RECEIVED NYSCEF: 01/03/2018
`3 of 79
`
`!
`
`of
`
`Columbia.
`
`That
`
`litigation
`
`has
`
`since
`
`resulted
`
`in
`
`a
`
`$7,000,000
`
`judgment
`
`against
`
`Robertson
`
`in
`
`favor
`
`of
`
`Cartinhour.
`
`Robertson
`
`has
`
`repeatedly
`
`argued
`
`to
`
`this
`
`and
`
`other
`
`courts
`
`that
`
`prosecution
`
`of
`
`Cartinhour's
`
`claims
`
`in
`
`the
`
`district
`
`court
`
`either
`
`violates
`
`the
`
`automatic
`
`stay
`
`arising
`
`in
`
`this
`
`case
`
`or
`
`otherwise
`
`improperly
`
`implicates
`
`estate
`
`property.
`
`He
`
`has
`
`position
`
`continued
`
`to
`
`advance
`
`this
`
`legally
`
`frivolous
`
`notwithstanding
`
`multiple
`
`rulings
`
`to
`
`the
`
`contrary,
`
`and
`
`the
`
`evidence
`
`shows
`
`that
`
`he
`
`has
`
`done
`
`so
`
`in
`
`bad
`
`faith
`
`in
`
`order
`
`to
`
`advance
`
`a
`
`broader
`
`litigation
`
`strategy
`
`in
`
`multiple
`
`courts
`
`against
`
`his
`
`adversary,
`
`Cartinhour.
`
`Robertson
`
`also
`
`engaged
`
`in
`
`an
`
`unusual
`
`and
`
`unethical
`
`strategy
`
`of
`
`ghostwriting
`
`papers
`
`on
`
`behalf
`
`of
`
`Ray
`
`Connolly,
`
`a
`
`purported
`
`creditor
`
`and
`
`adversary
`
`of
`
`Robertson
`
`in
`
`this
`
`case.
`
`And
`
`while
`
`ghostwriting
`
`is
`
`not
`
`outright
`
`prohibited
`
`in
`
`this
`
`court,
`
`doing
`
`so
`
`in
`
`a manner
`
`that
`
`misleads
`
`the
`
`court
`
`and
`
`violates
`
`the
`
`D.C.
`
`Rules
`
`of
`
`Professional
`
`Conduct
`
`is.
`
`The
`
`record
`
`clearly
`
`demonstrates
`
`that
`
`Robertson
`
`has
`
`intentionally
`
`and
`
`in
`
`bad
`
`faith:
`
`(1)
`
`misrepresented
`
`the
`
`legal
`
`a
`
`significance
`
`of
`
`these
`
`proceedings
`
`in
`
`other
`
`courts
`
`as
`
`part
`
`of
`
`broader
`
`litigation
`
`strategy
`
`against
`
`Cartinhour;
`
`(2)
`
`engaged
`
`in
`
`deceptive
`
`practices
`
`in
`
`this
`
`court
`
`that
`
`simultaneously
`
`violated
`
`Robertson's
`
`fiduciary
`
`duties
`
`to
`
`Ray
`
`Connolly
`
`and
`
`Robertson's
`
`duty
`
`of
`
`candor
`
`to
`
`this
`
`tribunal;
`
`and
`
`(3)
`
`advanced
`
`legally
`
`and
`
`factually
`
`frivolous
`
`arguments
`
`in
`
`this
`
`court.
`
`In
`
`addition
`
`to
`
`3
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Filed
`Case
`Doc
`275
`05/04/12
`05/04/12
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Document
`Page
`Compliance
`Directing
`
`09:11:15
`4 of 79
`
`INDEX NO. 518372/2017
`Desc
`Main
`RECEIVED NYSCEF: 01/03/2018
`
`Robertson's
`
`sanctionable
`
`conduct,
`
`the
`
`court
`
`also
`
`finds
`
`that
`
`the
`
`debtor's
`
`attorney,
`
`Ty
`
`Clevenger,
`
`joined
`
`Robertson
`
`in
`
`knowingly
`
`and
`
`in
`
`bad
`
`faith
`
`advancing
`
`frivolous
`
`arguments
`
`in
`
`this
`
`bankruptcy
`
`case.
`
`Under
`
`Rule
`
`9011,
`
`sanctions
`
`against
`
`Robertson
`
`and
`
`Clevenger
`
`are
`
`warranted
`
`in
`
`the
`
`form
`
`of
`
`fines
`
`payable
`
`to
`
`the
`
`clerk
`
`without
`
`even
`
`reaching
`
`Robertson's
`
`misuse
`
`of
`
`Connolly.
`
`Robertson's
`
`utilization
`
`of
`
`Connolly
`
`to
`
`advance
`
`his
`
`effort
`
`to
`
`cause
`
`Cartinhour
`
`delay
`
`and
`
`unnecessary
`
`expense
`
`rose
`
`to
`
`the
`
`level
`
`of
`
`bad
`
`faith
`
`in
`
`the
`
`extreme
`
`such
`
`as
`
`to
`
`warrant
`
`awarding
`
`fees
`
`to
`
`Cartinhour
`
`arising
`
`from
`
`such
`
`misconduct
`
`pursuant
`
`to
`
`the
`
`court's
`
`inherent
`
`powers.
`
`The
`
`court
`
`will
`
`also
`
`refer
`
`Robertson's
`
`misconduct
`
`as
`
`to
`
`Connolly
`
`although
`
`permitting
`
`to
`
`the
`
`appropriate
`
`state
`
`bar
`
`authorities.
`
`Connolly
`
`facilitated
`
`Robertson's
`
`misconduct
`
`Finally,
`
`by
`
`him
`
`to
`
`ghostwrite
`
`papers
`
`on
`
`his
`
`behalf,
`
`having
`
`considered
`
`the
`
`entire
`
`record,
`
`including
`
`Connolly's
`
`testimony
`
`at
`
`the
`
`August
`
`24,
`
`2011
`
`show
`
`cause
`
`hearing
`
`in
`
`front
`
`of
`
`this
`
`and
`
`a
`
`settlement
`
`amount
`
`that
`
`Connolly
`
`paid
`
`to
`
`Cartinhour,
`
`court,
`
`I
`
`conclude
`
`that
`
`Connolly's
`
`conduct
`
`does
`
`not
`
`warrant
`
`sanctions.
`
`II
`
`FACTUAL
`
`BACKGROUND
`
`Wade
`
`A.
`
`Robertson
`
`is
`
`an
`
`attorney
`
`admitted
`
`to
`
`practice
`
`law
`
`in
`
`the
`
`District
`
`of
`
`Columbia
`
`and
`
`the
`
`State
`
`of
`
`California.
`
`He
`
`is
`
`not
`
`4
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`Filed
`11-00044
`Case
`275
`05/04/12
`Entered
`05/04/12
`Doc
`NYSCEF DOC. NO. 119
`- Order
`Compliance
`Page
`Document
`Directing
`
`INDEX NO. 518372/2017
`Main
`09:11:15
`Desc
`RECEIVED NYSCEF: 01/03/2018
`5 of 79
`
`formally
`
`admitted
`
`to
`
`practice
`
`in
`
`the
`
`United
`
`States
`
`District
`
`Court
`
`for
`
`the
`
`District
`
`of
`
`Columbia
`
`or
`
`in
`
`this
`
`Bankruptcy
`
`Court.
`
`In
`
`September
`
`2004,
`
`Robertson
`
`entered
`
`into
`
`a
`
`partnership
`
`agreement
`
`with
`
`Dr.
`
`William
`
`C.
`
`Cartinhour,
`
`Jr.
`
`to
`
`form
`
`the
`
`debtor-
`
`partnership,
`
`W.A.R.
`
`LLP,
`
`under
`
`the
`
`laws
`
`of
`
`the
`
`District
`
`of
`
`to
`
`the
`
`of
`
`the
`
`Columbia.
`
`Pursuant
`
`terms
`
`partnership
`
`agreement,
`
`Robertson
`
`had
`
`"the
`
`exclusive
`
`right
`
`and
`
`authority
`
`to
`
`manage
`
`the
`
`business
`
`of
`
`the
`
`Partnership
`
`and
`
`[was
`
`thus]
`
`authorized
`
`to
`
`take
`
`any
`
`action
`
`he
`
`deem[ed]
`
`necessary
`
`in
`
`accordance
`
`with
`
`the
`
`provisions
`
`[of
`
`the
`
`partnership
`
`agreement]
`
`and
`
`any
`
`applicable
`
`law."
`
`By
`
`contrast,
`
`Cartinhour
`
`was
`
`to
`
`"not
`
`have
`
`any
`
`control
`
`over
`
`the
`
`bind
`
`Partnership's
`
`business
`
`[or]
`
`authority
`
`or
`
`right
`
`to
`
`act
`
`for
`
`or
`
`the
`
`B).
`
`Partnership."
`
`See
`
`Partnership
`
`Agreement
`
`(Dkt.
`
`No.
`
`143,
`
`Exh.
`
`Although
`
`Robertson
`
`reserved
`
`to
`
`himself
`
`control
`
`over
`
`the
`
`partnership,
`
`contributions,
`
`Cartinhour
`
`provided
`
`$3,500,000
`
`in
`
`capital
`
`whereas
`
`Robertson
`
`provided
`
`$3,500.
`
`Under
`
`the
`
`agreement,
`
`the
`
`partnership
`
`was
`
`permitted
`
`to
`
`make
`
`zero-interest
`
`loans.
`
`such
`
`to
`
`Robertson
`
`in
`
`for
`
`Two
`
`loans
`
`were
`
`made
`
`exchange
`
`promissory
`
`notes,
`
`including
`
`an
`
`April
`
`8,
`
`2005
`
`loan
`
`in
`
`the
`
`amount
`
`of
`
`$1,970,000,
`
`and
`
`an
`
`April
`
`18,
`
`2007
`
`loan
`
`in
`
`the
`
`amount
`
`of
`
`$1,435,000.
`
`The
`
`proceeds
`
`of
`
`those
`
`loans
`
`were
`
`deposited
`
`into
`
`Robertson's
`
`personal
`
`brokerage
`
`account.
`
`Robertson
`
`ultimately
`
`lost
`
`approximately
`
`$2,814,065
`
`of
`
`those
`
`funds
`
`in
`
`unsuccessful
`
`securities
`
`trading.
`
`5
`
`

`

`â€
`€
`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Case
`275
`Filed
`Doc
`05/04/12
`Entered
`05/04/12
`NYSCEF DOC. NO. 119
`- Order
`Document
`Compliance
`Page
`Directing
`
`INDEX NO. 518372/2017
`09:11:15
`Desc
`Main
`RECEIVED NYSCEF: 01/03/2018
`6 of 79
`
`A.
`
`District
`
`The
`
`Civil
`Court
`
`Action
`the
`
`for
`
`the
`
`in
`District
`
`U.S.
`of
`
`Columbia
`
`--
`
`-
`
`The
`
`etween
`reiationship-between-eartinh-our-and--Rub-e-rt-s-on-event-ua-l-ly
`
`deteriorated,
`
`declaratory
`
`and
`
`on
`
`August
`
`28,
`
`2009,
`
`Robertson
`
`brought
`
`a
`
`judgment
`
`action
`
`against
`
`Cartinhour
`
`in
`
`the
`
`United
`
`States
`
`District
`
`Court
`
`for
`
`the
`
`District
`
`of
`
`Columbia,
`
`Robertson
`
`v.
`
`Cartinhour,
`
`Civil
`
`Action
`
`No.
`
`09-01642,
`
`regarding
`
`W.A.R.
`
`LLP
`
`and
`
`certain
`
`agreements
`
`relating
`
`to
`
`the
`
`partnership.
`
`Cartinhour,
`
`in
`
`turn,
`
`filed
`
`various
`
`counterclaims
`
`against
`
`Robertson.
`
`Cartinhour's
`
`amended
`
`counter-complaint
`
`asserted
`
`that
`
`Robertson
`
`committed
`
`fraud
`
`or
`
`negligent
`
`misrepresentation
`
`and
`
`breached
`
`his
`
`Cartinhour
`
`fiduciary
`
`taking
`
`duties
`
`to
`
`and
`
`committed
`
`legal
`
`malpractice
`
`from
`
`Cartinhour
`
`$3.5
`
`million
`
`in
`
`capital
`
`contributions
`
`by
`
`for
`
`W.A.R.
`
`LLP.
`
`The
`
`Honorable
`
`Ellen
`
`M.
`
`Huvelle
`
`has
`
`presided
`
`over
`
`the
`
`civil
`
`action.
`
`(1)
`
`Cartinhour's
`Funds
`
`Equitable
`
`Trust
`
`Claim
`
`and
`
`the
`
`Registry
`
`Cartinhour's
`
`Amended
`
`Counter-Complaint
`
`included
`
`a Count
`
`XI
`
`(Equitable
`
`Trust)
`
`which,
`
`after
`
`pleading
`
`Robertson's
`
`wrongful
`
`acts
`
`against
`
`Cartinhour,
`
`stated:
`
`equity,
`of
`
`104.
`capital
`limited
`
`As
`
`to
`
`the
`not
`bonds,
`subject
`
`real
`a
`to
`WHEREFORE,
`Defendant/Counter-Plaintiff,
`requests
`that
`
`a matter
`contributions
`bank
`estate
`constructive
`
`of
`
`accounts,
`and
`
`the
`
`the
`
`Court
`
`impose
`
`6
`
`all
`Cartinhour,
`brokerage
`personal
`trust
`premises
`William
`a
`
`assets
`
`traceable
`
`including
`accounts,
`property
`favor
`
`stocks,
`should
`Cartinhour.
`
`to
`but
`
`be
`
`the
`Jr.,
`upon
`
`trust
`
`of
`considered,
`C.
`Cartinhour,
`constructive
`
`in
`
`

`

`â€
`â€
`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`Filed
`11-00044
`Case
`275
`05/04/12
`Entered
`05/04/12
`Doc
`NYSCEF DOC. NO. 119
`- Order
`Compliance
`Page
`Document
`Directing
`
`INDEX NO. 518372/2017
`Desc
`Main
`RECEIVED NYSCEF: 01/03/2018
`
`09:11:15
`7 of 79
`
`such
`all
`Robertson
`further
`which
`to
`
`assets
`in
`
`relief
`this
`
`favor
`as
`Court
`
`traceable
`of
`
`the
`
`to
`Cartinhour,
`nature
`of
`shall
`appear
`
`the
`
`this
`
`$3,500,000
`such
`and
`case
`
`taken
`other
`require
`may
`proper.
`
`just
`
`and
`
`by
`and
`and
`
`t
`
`!
`
`Mea-t-e-f-the-fund-s-t-ha-t-Ga-r-t-i-nheu-r-s-eugh-t-to-reach-by-th-i-s-requedL
`
`for
`
`a
`
`constructive
`
`trust
`
`were
`
`Robertson's
`
`property
`
`(with
`
`the
`
`majority
`
`of
`
`the
`
`funds
`
`being
`
`proceeds
`
`of
`
`the
`
`loans
`
`Robertson
`
`received
`
`from
`
`the
`
`partnership
`
`in
`
`exchange
`
`for
`
`promissory
`
`notes).
`
`Pursuant
`
`to
`
`preliminary
`
`orders
`
`in
`
`the
`
`district
`
`court,
`
`various
`
`of
`
`the
`
`district
`
`court
`
`funds
`
`were
`
`placed
`
`in
`
`the
`
`registry
`
`the
`
`outcome
`
`of
`
`Cartinhour's
`
`equitable
`
`trust
`
`claim.
`
`amount
`
`placed
`
`in
`
`the
`
`registry
`
`of
`
`the
`
`district
`
`court
`
`awaiting
`
`only
`
`came
`
`The
`
`that
`
`from
`
`an
`
`account
`
`in
`
`the
`
`name
`
`of
`
`the
`
`debtor
`
`partnership
`
`was
`
`$4,611.66
`
`deposited
`
`in
`
`in
`
`funds
`
`held
`
`in
`
`the
`
`debtor's
`
`Citibank
`
`account,
`
`and
`
`the
`
`registry
`
`of
`
`the
`
`district
`
`court
`
`on
`
`April
`
`2,
`
`7
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`05/04/12
`Filed
`Case
`Doc
`275
`05/04/12
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Page
`Document
`Compliance
`Directing
`
`INDEX NO. 518372/2017
`Main
`09:11:15
`Desc
`RECEIVED NYSCEF: 01/03/2018
`8 of 79
`
`2010.2
`
`this
`
`the
`
`that
`
`That
`
`deposit
`
`occurred
`
`well
`
`before
`
`the
`
`commencement
`
`of
`
`bankruptcy
`
`case
`
`in
`
`November
`
`2010.
`
`After
`
`the
`
`commencement
`
`of
`
`bankruptcy
`
`case,
`
`Cartinhour
`
`and
`
`his
`
`attorneys
`
`were
`
`they
`
`were
`
`not
`
`pursing
`
`Cartinhour's
`
`claims
`
`against
`
`clear
`
`very
`
`the
`
`$4,611.66
`
`out
`
`of
`
`concern
`
`that
`
`such
`
`efforts
`
`would
`
`violate
`
`the
`
`automatic
`
`stay.
`
`To
`
`explain
`
`in
`
`more
`
`detail,
`
`the
`
`source
`
`of
`
`the
`
`funds
`
`placed
`
`in
`
`the
`
`registry
`
`of
`
`the
`
`district
`
`court
`
`can
`
`be
`
`traced
`
`as
`
`follows.
`
`Robertson
`
`had
`
`caused
`
`the
`
`partnership
`
`to
`
`lend
`
`him
`
`$3,405,000
`
`pursuant
`
`to
`
`Article
`
`XXIII
`
`of
`
`the
`
`W.A.R.
`
`LLP
`
`partnership
`
`The
`at
`but
`of
`of
`
`2
`
`conceded
`that
`
`all
`
`registry
`accounts
`Specifically,
`2010
`hearing:
`
`debtor's
`a November
`
`general
`
`approximately
`the
`district
`Robertson,
`the
`
`following
`
`19,
`
`not
`
`partner,
`2010
`hearing
`of
`$4,000
`court
`in
`
`were
`accounts
`
`colloquy
`
`Robertson,
`in
`
`the
`funds
`that
`the
`
`at
`
`the
`funds
`
`of
`ensued
`
`through
`district
`held
`had
`debtor.
`a November
`
`in
`been
`
`counsel,
`court
`the
`held
`
`in
`
`19,
`
`Where
`
`are
`
`they
`
`I
`Your
`That
`
`in
`only
`accounts
`in
`believe
`Honor.
`is
`
`all
`the
`
`assets
`
`registry
`
`the
`Court
`someplace?
`they're
`[sic]
`
`of
`
`correct.
`close
`is
`
`it
`registry.
`came
`out
`
`to
`
`700,000
`
`Most
`accounts
`
`of
`
`of
`
`that,
`in
`
`his
`
`that
`
`all
`
`were
`are
`
`the
`
`or
`
`in
`
`is
`the
`
`that
`with
`personal
`
`frozen
`some
`
`Court
`
`sitting
`exception
`name;
`
`[THE
`COURT:]
`Are
`now?
`of
`frozen
`them
`GRIFFIN:
`MR.
`registry,
`MR.
`KEARNEY:
`THE
`COURT:
`the
`
`in
`
`of
`that
`GRIFFIN:
`KEARNEY:
`
`is
`MR.
`MR.
`
`So,
`Court
`4,000,
`correct?
`
`That
`
`Yes,
`
`is
`Your
`
`correct,
`Honor.
`
`Your
`
`Honor.
`
`Tr.
`
`(D.
`
`Ct.
`
`Dkt.
`
`No.
`
`182)
`
`at
`
`6.
`
`8
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Case
`Doc
`275
`Filed
`05/04/12
`Entered
`05/04/12
`NYSCEF DOC. NO. 119
`- Order
`Document
`Compliance
`Page
`Directing
`
`INDEX NO. 518372/2017
`Main
`Desc
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`9 of 79
`
`agreements,3
`
`civil
`
`action.4
`
`as
`
`borne
`
`out
`
`by
`
`an
`
`accounting
`
`Robertson
`
`filed
`
`in
`
`the
`
`Specifically,
`
`before
`
`this
`
`bankruptcy
`
`case
`
`commenced,
`
`the
`
`district
`
`court
`
`directed
`
`Robertson
`
`to
`
`file
`
`an
`
`accounting
`
`regarding
`
`3
`
`The
`
`debtor
`
`has
`
`acknowledged
`
`that:
`
`The
`issuance
`.
`.
`issued
`April
`April
`
`Partnership
`of
`Two
`as
`
`.
`
`loans
`such
`
`promissory
`for
`2005
`2007
`
`for
`
`8,
`18,
`
`Agreements
`from
`loans
`
`the
`are
`notes
`
`agreed
`explicitly
`the
`to
`partnership
`outstanding,
`currently
`to
`Robertson--one
`and
`the
`
`other
`
`to
`partners.
`
`the
`
`each
`on
`on
`
`issued
`issued
`
`$1.970
`$1.435
`
`million
`million.
`
`W.A.R.
`
`See
`(Bankr.
`
`LLP
`D.D.C.),
`
`v.
`
`Cartinhour,
`Complaint
`
`Adversary
`No.
`
`(Dkt.
`
`Proceeding
`11-12.
`11
`
`2)
`
`No.
`
`11-10004
`
`4
`
`their
`
`in
`
`the
`
`civil
`
`action
`
`In
`
`(Dkt.
`
`No.
`
`121),
`
`joint
`the
`
`pretrial
`parties
`
`statement
`stipulated
`
`that:
`
`8,
`
`A.
`
`Wade
`April
`Defendant's
`Wade
`A.
`A.
`Schwab
`
`as
`
`Robertson
`2005,
`
`Exhibit
`Robertson's
`& Sons,
`
`borrowed
`evidenced
`19.
`personal
`Inc.
`
`$1,970,000
`
`from
`
`W.A.R.
`
`That
`
`by
`
`the
`
`money
`brokerage
`
`promissory
`was
`deposited
`account
`at
`
`LLP
`note
`
`on
`at
`
`into
`Charles
`
`Between
`Robertson
`Schwab
`personal
`that
`
`April
`26,
`transferred
`
`&
`
`Sons,
`Citibank
`
`Inc.
`
`of
`
`as
`withdrawn,
`
`account
`not
`money
`in
`unsuccessful
`his
`personal
`
`securities
`brokerage
`
`2005
`
`and
`$224,184.52
`personal
`account,
`August
`
`August
`
`30,
`from
`
`2005,
`his
`account
`of
`balance
`
`Wade
`Charles
`
`to
`$10.56
`of
`
`was
`Roberson
`
`A.
`
`A.
`A.
`his
`in
`the
`lost
`
`in
`
`2005.
`
`brokerage
`a balance
`The
`$1,746,000,
`by Wade
`
`leaving
`31,
`approximately
`trading
`account[.]
`
`.
`
`.
`
`.
`
`A.
`
`18,
`
`Wade
`April
`Defendant's
`Wade
`A.
`A.
`Schwab
`in
`unsuccessful
`his
`personal
`
`Robertson
`2007
`Exhibit
`Robertson's
`& Sons,
`
`borrowed
`pursuant
`54.
`personal
`
`$1,435,000
`the
`to
`That
`
`money
`brokerage
`
`Inc.
`securities
`brokerage
`
`Approximately
`trading
`account.
`
`9
`
`from
`
`W.A.R.
`
`promissory
`deposited
`was
`account
`at
`$1,068,065,was
`A.
`by Wade
`
`LLP
`note
`
`on
`at
`
`into
`Charles
`lost
`
`Roberson
`
`in
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Filed
`05/04/12
`Entered
`05/04/12
`Case
`Doc
`275
`NYSCEF DOC. NO. 119
`- Order
`Compliance
`Page
`Document
`Directing
`
`INDEX NO. 518372/2017
`Main
`Desc
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`10 of 79
`
`the
`
`partnership
`
`(D.
`
`Ct.
`
`Dkt.
`
`No.
`
`18).
`
`On
`
`January
`
`4,
`
`2010,
`
`Robertson
`
`filed
`
`an
`
`affidavit
`
`(D.
`
`Ct.
`
`Dkt.
`
`No.
`
`25),
`
`which
`
`included
`
`an
`
`Exhibit
`
`B,
`
`which
`
`set
`
`forth
`
`the
`
`partnership's
`
`assets
`
`as:
`
`ASSETS:
`Cash
`Receivables
`â€
`-(Article
`
`Accounts
`
`Receivable
`
`Accounts
`
`Total
`
`(Contingency
`Receivable
`(Contingency
`Assets:
`
`$4,541.44
`
`XXIII
`
`, WAR.
`
`Partn.
`
`Agreemt)
`
`$3,405,000.00
`
`class
`
`claims
`
`Class
`
`claims
`
`-
`
`-
`
`Expenses)
`
`$213,111.13
`
`Prof.
`
`Srvcs)
`
`$3,833,440.00
`$7,456,092.57
`
`Pursuant
`
`to
`
`his
`
`Equitable
`
`Trust
`
`claim,
`
`Cartinhour
`
`sought
`
`and
`
`in
`
`March
`
`and
`
`April
`
`before
`
`the
`
`of
`
`the
`
`obtained
`
`orders
`
`2010,
`
`filing
`
`petition
`
`in
`
`this
`
`case,
`
`which
`
`resulted
`
`in
`
`various
`
`funds,
`
`traceable
`
`to
`
`Cartinhour's
`
`$3.5
`
`million
`
`in
`
`capital
`
`contributions,
`
`and
`
`that
`
`were
`
`owned
`
`or
`
`controlled
`
`by
`
`Robertson,
`
`being
`
`placed
`
`in
`
`the
`
`registry
`
`of
`
`the
`
`district
`
`court
`
`•
`
`Two
`
`of
`
`the
`
`deposits,
`
`to
`
`in
`
`be
`
`held
`
`in
`
`custodia
`
`legis:
`
`the
`
`amounts
`
`of
`
`$20,713.75
`
`and
`
`$5,000,
`
`were
`
`of
`
`moneys
`
`held
`
`by
`
`law
`
`firms
`
`representing
`
`Robertson,
`
`and
`
`were
`
`made
`
`pursuant
`
`to
`
`a
`
`consent
`
`order
`
`10
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Case
`275
`05/04/12
`05/04/12
`Doc
`Filed
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Document
`Page
`Compliance
`Directing
`
`INDEX NO. 518372/2017
`Main
`09:11:15
`Desc
`RECEIVED NYSCEF: 01/03/2018
`11 of 79
`
`entered
`
`on
`
`March
`
`2010.5
`
`1,
`
`•
`
`The
`
`remaining
`
`deposits
`
`were
`
`made
`
`pursuant
`
`to
`
`a
`
`preliminary
`
`injunction
`
`entered
`
`on
`
`March
`
`26,
`
`2010,6
`
`and
`
`consisted
`
`of
`
`deposits
`
`on
`
`April
`
`2,
`
`2010,
`
`of
`
`$600,074.92
`
`from
`
`Robertson's
`
`Schwab
`
`account
`
`and
`
`$4,611.66
`
`deposited
`
`by
`
`Citibank
`
`accounts.
`
`from
`
`the
`
`debtor's
`
`Citibank
`
`account
`
`or
`
`5
`
`was:
`
`The
`
`consent
`
`order
`
`directed
`
`that,
`
`among
`
`other
`
`things,
`
`it
`
`any
`
`ORDERED,
`Edward
`retained
`Robertson
`Counsel
`
`that
`Griffin,
`by
`in
`
`held
`or
`Robertson
`and
`
`any
`
`directly
`other
`on
`with
`
`with
`
`this
`
`or
`
`indirectly
`
`or
`
`of
`to
`
`any
`
`by
`
`A.
`Bar
`
`monies
`Esquire,
`Wade
`A.
`this
`matter,
`Complaints/Investigation,
`in
`connection
`for
`deposit
`days
`(5)
`
`of
`
`proceeding
`surrendered
`within
`
`five
`
`attorney
`behalf
`respect
`and
`matter,
`
`into
`the
`
`the
`date
`
`Registry
`of
`this
`
`of
`Order[.]
`
`expert
`Wade
`the
`criminal
`shall
`the
`
`Court
`
`be
`
`Ct.
`
`D.
`Griffin
`& Brennan
`district
`
`Dkt.
`
`No.
`
`70.
`
`Whitaker,
`LLP
`court.
`
`LLC
`deposited
`(See
`
`On March
`deposited
`$5,000.00
`Ct.
`
`D.
`
`9,
`
`Dkt.
`
`2010,
`$20,713.75
`into
`entries
`
`pursuant
`
`the
`
`and
`
`registry
`preceding
`
`that
`to
`Sutherland
`
`order,
`Asbill
`
`the
`
`of
`Dkt.
`
`No.
`
`75.)
`
`6
`
`The
`
`district
`
`court's
`
`order
`
`directed
`
`that
`
`it
`
`was:
`
`that
`Inc.
`
`.
`
`monies
`all
`brokerage
`.
`and
`
`all
`account
`
`ORDERED,
`&
`Sons,
`(xxx-0772)
`W.A.R.
`this
`March
`
`concealed,
`Schwab
`those
`Court
`
`Registry
`henceforth
`current
`
`LLP,
`Court's
`1,
`
`2010
`
`and
`accounts
`for
`
`the
`of
`
`.
`and
`any
`Consent
`is
`not
`spent
`Citibank
`to
`District
`the
`held
`location[.]
`
`[in]
`
`Charles
`Wade
`
`A.
`
`in
`
`the
`held
`of
`account
`accounts
`Citibank
`of Wade
`Robertson
`Injunction
`moved,
`dissipated,
`
`the
`
`Schwab
`A.
`Robertson
`the
`name
`subject
`entered
`transferred,
`EXCEPT
`funds
`held
`States
`District
`United
`deposit
`for
`into
`funds
`and
`those
`regardless
`of
`
`of
`to
`on
`
`THAT
`in
`
`the
`are
`
`their
`
`to
`
`or
`
`the
`
`Court
`custodia
`
`in
`
`Preliminary
`be
`withdrawn,
`otherwise
`shall
`Clerk
`of
`
`transfer
`of
`the
`Columbia
`forthwith
`
`legis,
`
`11
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Case
`Doc
`275
`Filed
`05/04/12
`05/04/12
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Document
`Page
`Compliance
`Directing
`
`INDEX NO. 518372/2017
`Main
`Desc
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`12 of 79
`
`In
`
`addition
`
`to
`
`the
`
`Equitable
`
`Trust
`
`claim,
`
`the
`
`Amended
`
`Counter-
`
`Complaint
`
`included
`
`counts
`
`for
`
`Accounting
`
`(Count
`
`I),
`
`Derivative
`
`Action
`
`(Count
`
`VIII),
`
`Rescission
`
`(Count
`
`IX),
`
`Dissolution
`
`and
`
`Appointment
`
`of
`
`Receiver
`
`(Count
`
`X),
`
`and
`
`Declaratory
`
`Judgment
`
`(Count
`
`XII)
`
`(seeking
`
`to
`
`declare
`
`the
`
`agreements
`
`between
`
`Cartinhour
`
`and
`
`Robertson
`
`unenforceable).
`
`In
`
`the
`
`joint
`
`pretrial
`
`statement
`
`filed
`
`in
`
`the
`
`civil
`
`action
`
`on
`
`November
`
`5,
`
`2010
`
`(Dkt.
`
`No.
`
`121),
`
`before
`
`the
`
`commencement
`
`of
`
`this
`
`bankruptcy
`
`case,
`
`Cartinhour
`
`elected
`
`not
`
`to
`
`pursue
`
`the
`
`claim
`
`for
`
`an
`
`Accounting
`
`(Count
`
`I)
`
`and
`
`the
`
`Derivative
`
`Action
`
`(Count
`
`VIII).
`
`.
`
`B.
`
`Rulings
`
`The
`
`Bankruptcy
`Regarding
`
`and
`Case
`Automatic
`
`the
`
`Stay
`
`November
`
`On
`
`15,
`
`2010,
`
`Douglas
`
`Sims
`
`filed
`
`an
`
`involuntary
`
`petition
`
`commencing
`
`this
`
`bankruptcy
`
`case
`
`against
`
`W.A.R.
`
`LLP
`
`the
`
`United
`
`States
`
`Bankruptcy
`
`Court
`
`for
`
`the
`
`Western
`
`District
`
`in
`
`of
`
`Tennessee.
`
`The
`
`case
`
`was
`
`later
`
`transferred
`
`On
`
`November
`
`17,
`
`2010,
`
`Robertson
`
`suggestion
`
`of
`
`bankruptcy,
`
`contending
`
`this
`
`district.
`
`the
`
`civil
`
`action
`
`a
`
`to
`
`in
`
`filed
`
`that:
`
`which
`To
`
`seeks
`form
`dissolve
`would
`estate,"
`
`Cartinhour
`Dr.
`Agreements
`existence.
`or
`
`receivership
`property
`claims
`the
`
`in
`Tennessee
`
`of
`the
`
`the
`instant
`
`bankruptcy
`
`to
`
`rescind
`
`the
`the
`appear
`
`very
`Debtor
`to
`
`and
`
`basis
`
`by
`
`"exert
`to
`the
`
`action
`action.
`
`do
`
`so,
`
`the
`of
`
`the
`of
`way
`control
`extent
`are
`
`they
`
`Partnership
`Debtor's
`rescission
`over
`that
`stayed
`
`the
`
`any
`by
`
`On
`
`November
`
`18,
`
`2010,
`
`Cartinhour,
`
`through
`
`his
`
`attorney
`
`Patrick
`
`Kearney,
`
`filed
`
`a
`
`reply
`
`to
`
`the
`
`suggestion
`
`of
`
`bankruptcy,
`
`in
`
`which
`
`12
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Case
`Doc
`275
`Filed
`05/04/12
`05/04/12
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Document
`Page
`Compliance
`Directing
`
`INDEX NO. 518372/2017
`Main
`Desc
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`13 of 79
`
`he
`
`made
`
`clear
`
`that
`
`he
`
`was
`
`electing
`
`not
`
`to
`
`pursue
`
`his
`
`claim
`
`appointment
`
`of
`
`a
`
`receiver,
`
`and
`
`not
`
`to
`
`pursue
`
`the
`
`$4,611.66
`
`for
`
`that
`
`came
`
`from
`
`the
`
`account
`
`of
`
`the
`
`debtor
`
`at
`
`Citibank.
`
`That
`
`reply
`
`(D.
`
`Ct.
`
`Dkt.
`
`No.
`
`130)
`
`stated:
`
`Amended
`for
`to
`abandoned
`
`Counter
`W.A.R.
`the
`
`LLP
`automatic
`as
`Cartinhour
`W.A.R.
`rescinded.
`
`against
`not
`are
`automatic
`imposition
`
`the
`the
`
`directly
`of
`
`those
`to
`
`stay
`of
`traceable
`
`a
`
`property
`
`the
`
`the
`
`by
`Charles
`
`The
`claims
`subject
`been
`statement.
`receiver
`parties
`while
`seeks
`is
`that
`bulk
`The
`transferred
`no
`longer
`the
`dominion,
`evidenced
`personal
`personal
`his
`LLP
`W.A.R.
`Robertson.
`
`is
`
`to
`
`estate
`notes
`affect
`
`Complaint
`against
`
`of
`
`stay.
`the
`also
`LLP
`
`did
`Robertson,
`But,
`
`filing
`seeks
`the
`
`assert
`
`derivative
`would
`
`which
`
`claims
`
`pretrial
`
`be
`have
`
`of
`
`a
`
`the
`
`those
`the
`of
`appointment
`the
`agreements
`between
`action
`cannot
`go
`forward
`place.
`Cartinhour
`also
`trust
`
`if
`That
`in
`is
`constructive
`to
`funds
`remainder
`two
`
`the
`under
`Estate
`and
`
`-
`
`over
`invested.
`$3,405,000
`notes
`went
`Robertson
`
`money
`
`are
`into
`
`to
`and
`
`which
`of
`
`he
`the
`
`promissory
`the
`monies
`of
`transferred
`account
`Inc.
`the
`
`monies,
`Robertson
`of
`exercise
`fact
`A.
`Citibank
`owed
`money
`Cartinhour
`
`that
`they
`Schwab
`and
`account.
`under
`does
`
`control
`were
`Sons,
`Instead,
`promissory
`seek
`
`two
`not
`
`as
`his
`to
`of
`made
`those
`
`in
`
`$4,000
`injunction
`position
`under
`
`held
`
`in
`and
`
`estate
`is
`esoteric
`Cartinhour
`trust
`transferred
`to
`
`in
`such
`U.S.C.
`
`a
`
`Citibank
`issued
`that
`11
`trust
`expensive
`will
`on money
`directly
`Registry
`
`for
`
`not
`in
`
`of
`
`money
`too
`is
`of
`money.
`constructive
`that
`
`was
`account
`
`stay
`
`is
`
`in
`
`the
`place.
`
`W.A.R.
`
`LLP
`
`had
`was
`
`which
`
`case.
`are
`
`While
`not
`
`it
`
`approximately
`subject
`is
`
`to
`Cartinhour's
`of
`the
`
`the
`
`by
`notes.
`
`account
`this
`funds
`section
`
`Cartinhour,
`for
`such
`seek
`the
`the
`from
`the
`
`Registry
`the
`Court
`
`541
`
`in
`the
`small
`a
`imposition
`of
`
`W.A.R.
`while
`
`property
`that
`argument
`amount
`of
`Court
`Citibank
`automatic
`
`the
`
`a
`
`the
`LLP
`the
`
`Reply
`
`(D.
`
`Ct.
`
`Dkt.
`
`No.
`
`130)
`
`at
`
`2-3.
`
`Accordingly,
`
`the
`
`only
`
`claims
`
`by
`
`civil
`
`Cartinhour
`
`that
`
`Cartinhour
`
`was
`
`continuing
`
`to
`
`pursue
`
`in
`
`the
`
`action
`
`were
`
`the
`
`claims
`
`for
`
`monetary
`
`damages
`
`against
`
`Robertson,
`
`the
`
`claims
`
`for
`
`rescission,
`
`the
`
`claim
`
`for
`
`a
`
`declaratory
`
`13
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`05/04/12
`11-00044
`275
`Filed
`05/04/12
`Entered
`Case
`Doc
`NYSCEF DOC. NO. 119
`- Order
`Page
`Compliance
`Document
`Directing
`
`INDEX NO. 518372/2017
`Main
`09:11:15
`Desc
`RECEIVED NYSCEF: 01/03/2018
`14 of 79
`
`judgment
`
`that
`
`the
`
`agreements
`
`between
`
`Robertson
`
`and
`
`Cartinhour
`
`were
`
`unenforceable,
`
`and
`
`the
`
`claim
`
`to
`
`enforce
`
`a
`
`constructive
`
`trust
`
`against
`
`funds
`
`that
`
`belonged
`
`to
`
`Robertson.
`
`Nevertheless,
`
`the
`
`debtor
`
`contended
`
`that
`
`the
`
`automatic
`
`stay
`
`barred
`
`the
`
`continued
`
`pursuit
`
`of
`
`the
`
`civil
`
`action
`
`in
`
`its
`
`entirety.
`
`In
`
`the
`
`bankruptcy
`
`court
`
`in
`
`Tennessee,
`
`the
`
`debtor
`
`and
`
`Cartinhour
`
`both
`
`filed
`
`papers
`
`addressing
`
`the
`
`issue
`
`of
`
`the
`
`reach
`
`of
`
`the
`
`automatic
`
`stay.
`
`The
`
`debtor
`
`filed
`
`an
`
`adversary
`
`proceeding,
`
`W.A.R.
`
`LLP
`
`v.
`
`Cartinhour
`
`(a
`
`proceeding
`
`later
`
`transferred
`
`to
`
`this
`
`court
`
`and
`
`assigned
`
`No.
`
`11-10004),
`
`to
`
`Adversary
`
`Proceeding
`
`seeking
`
`enjoin
`
`Cartinhour's
`
`pursuit
`
`of
`
`the
`
`civil
`
`action
`
`in
`
`the
`
`district
`
`Cartinhour
`
`filed
`
`a motion
`
`for
`
`relief
`
`from
`
`the
`
`automatic
`
`court.
`
`stay.
`
`In
`
`its
`
`complaint
`
`commencing
`
`the
`
`adversary
`
`proceeding,
`
`the
`
`debtor
`
`acknowledged
`
`that:
`
`The
`issuance
`.
`.
`issued
`April
`April
`
`Partnership
`of
`Two
`as
`
`.
`
`loans
`such
`
`promissory
`2005
`for
`2007
`
`for
`
`8,
`18,
`
`Agreements
`from
`loans
`
`the
`are
`notes
`
`$1.970
`$1.435
`
`million
`million.
`
`explicitly
`partnership
`currently
`to
`Robertson--one
`the
`and
`
`Compl.
`
`55
`
`11-12.
`
`The
`
`complaint
`
`then
`
`alleged:
`
`Partnership'
`Partnership's
`intangible
`
`both
`
`accounting
`and
`tangible
`
`agreed
`the
`
`to
`outstanding,
`
`to
`partners.
`
`the
`
`each
`on
`on
`
`the
`The
`of
`in
`as
`the
`the
`
`other
`
`issued
`issued
`
`of
`had
`
`shows,
`assets.
`estate
`held
`well
`
`to
`
`remaining
`
`the
`been
`as
`pursuant
`payable
`these
`
`As
`
`the
`has
`assets
`
`16.
`
`Partnership
`tangible
`the
`bank
`cash
`
`[sic]
`debtor
`
`debtor
`accounts
`held
`two
`
`by
`outstanding
`Partnership
`
`comprising
`Partnership
`in
`Mr.
`
`include
`name
`the
`Robertson
`
`the
`
`of
`
`in
`
`property
`cash
`the
`his
`
`that
`
`Partnership
`accounts
`notes
`of
`
`promissory
`.
`.
`
`.
`
`.
`
`All
`
`14
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`275
`05/04/12
`Entered
`05/04/12
`Case
`Doc
`Filed
`NYSCEF DOC. NO. 119
`- Order
`Compliance
`Page
`Document
`Directing
`
`INDEX NO. 518372/2017
`Desc
`Main
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`15 of 79
`
`into
`
`for
`
`tangible
`seized
`Court
`a motion
`March
`in
`enjoined
`District
`
`the
`for
`of
`and
`Court
`
`of
`
`Partnership
`the
`of
`Columbia
`injunction
`than
`More
`the
`Into
`District
`
`were
`
`United
`in
`
`a
`
`enjoined
`States
`civil
`
`by
`
`$630,
`Registry
`Columbia.
`
`of
`
`Dr.
`000
`
`of
`
`District
`
`action
`Cartinhour
`cash
`the
`
`in
`
`and
`
`upon
`
`was
`U.S.
`
`assets
`the
`Registry
`District
`a
`2010.
`attached
`for
`
`of
`
`the
`
`preliminary
`.
`
`.
`
`.
`
`the
`
`[Emphasis
`
`added.]
`
`The
`
`allegation
`
`that
`
`the
`
`"cash
`
`held
`
`by
`
`Mr.
`
`Robertson
`
`in
`
`his
`
`accounts
`
`pursuant
`
`[to]
`
`two
`
`outstanding
`
`promissory
`
`notes
`
`payable
`
`to
`
`the
`
`debtor
`
`Partnership"
`
`is
`
`property
`
`of
`
`the
`
`estate
`
`was
`
`simply
`
`incorrect,
`
`and
`
`was
`
`not
`
`supported
`
`by
`
`the
`
`facts
`
`or
`
`the
`
`law.
`
`The
`
`cash,
`
`having
`
`been
`
`lent
`
`to
`
`Robertson,
`
`became
`
`Robertson's
`
`property,
`
`and
`
`the
`
`estate
`
`retained
`
`only
`
`an
`
`interest
`
`in
`
`the
`
`promissory
`
`notes
`
`obligating
`
`Robertson
`
`to
`
`repay
`
`those
`
`loans
`
`to
`
`the
`
`debtor.
`
`In
`
`executing
`
`the
`
`debtor's
`
`Schedule
`
`asserted
`
`the
`
`estate
`
`retained
`
`B,
`
`an
`
`Robertson
`
`again
`
`erroneously
`
`that
`
`interest
`
`in
`
`the
`
`funds
`
`lent
`
`to
`
`Robertson
`
`by
`
`listing
`
`the
`
`$630,000
`
`in
`
`its
`
`entirety
`
`as
`
`property
`
`of
`
`the
`
`estate.
`
`(Bankr.
`
`D.D.C.
`
`Dkt.
`
`No.
`
`79.)
`
`That
`
`inaccurate
`
`Schedule
`
`B did
`
`not
`
`change
`
`the
`
`character
`
`of
`
`those
`
`funds,
`
`cast
`
`doubt
`
`on
`
`whether
`
`the
`
`estate
`
`actually
`
`retained
`
`an
`
`interest
`
`in
`
`those
`
`funds,
`
`or
`
`in
`
`manner
`
`change
`
`the
`
`any
`
`fact
`
`that
`
`the
`
`$630,000
`
`(aside
`
`from
`
`the
`
`$4,611.66
`
`that
`
`came
`
`from
`
`the
`
`the
`
`debtor's
`
`Citibank
`
`account)
`
`was
`
`Robertson's
`
`property
`
`in
`
`which
`
`estate
`
`had
`
`no
`
`interest.
`
`In
`
`an
`
`order
`
`entered
`
`on
`
`November
`
`24,
`
`2010,
`
`the
`
`Honorable
`
`Paulette
`
`J.
`
`Delk
`
`Western
`
`District
`
`of
`
`of
`
`the
`
`United
`
`States
`
`Bankruptcy
`
`Court
`
`for
`
`the
`
`Tennessee
`
`concluded
`
`that
`
`the
`
`automatic
`
`stay
`
`15
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`Case
`275
`Doc
`Filed
`05/04/12
`Entered
`05/04/12
`NYSCEF DOC. NO. 119
`- Order
`Document
`Compliance
`Page
`Directing
`
`INDEX NO. 518372/2017
`09:11:15
`Desc
`Main
`RECEIVED NYSCEF: 01/03/2018
`16 of 79
`
`did
`
`not
`
`bar
`
`the
`
`continued
`
`litigation
`
`of
`
`the
`
`civil
`
`action
`
`against
`
`Robertson,
`
`and
`
`additionally,
`
`out
`
`of
`
`an
`
`abundance
`
`of
`
`caution,
`
`granted
`
`relief
`
`from
`
`the
`
`automatic
`
`stay
`
`to
`
`permit
`
`the
`
`civil
`
`action
`
`to
`
`proceed.
`
`Specifically,
`
`Judge
`
`Delk
`
`ruled,
`
`and
`
`"SO
`
`ORDERED"
`
`as
`for
`the
`
`party
`immediately
`estate.
`against
`general
`under
`
`that:
`
`being
`
`Matters
`the
`potential
`
`debtor
`
`of
`debtor
`as
`
`property
`in
`the
`status
`protection
`debtor-partnership.
`Cir.
`1993),
`(Bankr.
`automatic
`
`W.D.
`
`stay
`
`citing
`Penn.
`does
`because
`be
`
`forward,
`estate
`aware
`
`of
`
`will
`the
`
`tried
`a
`
`in
`
`the
`and
`
`D.C.
`
`are
`
`not
`
`lawsuit
`matters
`
`do
`
`that
`
`the
`
`the
`entitle
`
`F.3d
`
`stay
`8
`Ltd,
`finds
`
`involve
`in
`
`not
`
`The
`
`not
`
`the
`or
`
`partner
`
`involve
`have
`debtor
`one
`debtor.
`
`one
`
`of
`343
`B.R.
`that
`
`15
`
`The
`to
`the
`(6th
`64
`the
`from
`of
`
`D.C.
`
`lawsuit
`
`nor
`
`The
`another
`partner
`the
`Patton
`In
`re
`1981).
`not
`
`prevent
`neither
`affected
`
`affecting
`matters
`partner
`does
`automatic
`v.
`Bearden,
`Bank
`Center,
`court
`the
`debtor
`trial.
`stated
`will
`some
`reach
`since
`
`by
`case
`
`the
`the
`and
`lawsuit
`would
`were
`be
`
`D.C.
`which
`issue
`not
`debtor
`assets
`105
`
`going
`the
`is
`that
`
`remedy
`debtor.
`
`any
`
`of
`
`bankruptcy
`of
`creditors
`partners'
`
`of
`
`. O
`
`ut
`that
`
`Cardinal
`1989).
`
`finds
`
`362(d)
`go
`
`(1)
`forward.
`
`to
`
`[Emphasis
`
`added.]
`
`ruling
`dissolution
`Even
`if
`estate
`
`bankruptcy
`in
`the
`
`that
`would
`the
`
`of
`
`right
`Industries
`
`to
`
`,
`
`the
`
`Inc.,
`
`be
`
`Huvelle
`record
`
`property
`Judge
`on
`not
`impact
`
`the
`reach
`
`the
`the
`the
`
`on
`
`rights
`
`In
`
`the
`re
`Ohio
`
`[sic],
`the
`over
`
`S.D.
`
`priority
`the
`834
`
`debtor.
`(BANKR.
`
`B.R.
`
`have
`to
`affected
`have
`of
`
`an
`abundance
`sufficient
`to modify
`
`of
`cause
`the
`
`stay
`
`caution,
`exists
`to
`
`the
`under
`permit
`
`court
`11
`
`the
`
`expressly
`U.S.C.
`D.C.
`
`lawsuit
`
`Meanwhile,
`
`back
`
`in
`
`the
`
`civil
`
`action,
`
`Judge
`
`Huvelle
`
`held
`
`a
`
`hearing
`
`on
`
`November
`
`19,
`
`2010,
`
`and
`
`reached
`
`the
`
`same
`
`conclusion
`
`that
`
`the
`
`automatic
`
`stay
`
`did
`
`not
`
`apply.
`
`Judge
`
`Huvelle
`
`ruled
`
`as
`
`follows:
`
`16
`
`

`

`FILED: KINGS COUNTY CLERK 01/03/2018 02:17 PM
`11-00044
`275
`05/04/12
`Case
`Doc
`Filed
`05/04/12
`Entered
`NYSCEF DOC. NO. 119
`- Order
`Page
`Document
`Compliance
`Directing
`
`INDEX NO. 518372/2017
`Desc
`Main
`09:11:15
`RECEIVED NYSCEF: 01/03/2018
`17 of 79
`
`Robertson
`claims
`control
`rescission
`dissolution
`
`incorrect.
`
`argues
`because
`over
`
`Mr.
`
`that
`
`the
`Cartinhour
`partnership's
`
`stay
`
`applies
`is
`
`seeking
`estate
`agreement
`
`to
`
`Cartinhour's
`to
`exercise
`
`by
`and
`
`obtaining
`therefore
`
`find
`
`his
`
`legal
`
`arguments
`
`to
`
`be
`
`partnership
`partnership.
`1
`
`As
`
`I
`
`of
`of
`
`.
`
`rule
`.
`[an]
`claims
`
`the
`the
`the
`below,
`.
`initial
`against
`W.A.R.
`of
`
`not
`debtor.
`status
`him
`
`[A]s
`
`stay
`
`to
`
`I'm
`
`Rather,
`a
`partner
`as
`protections
`
`of
`
`applicable.
`Sixth
`Cartinhour's
`because
`not
`
`the
`So,
`
`damages
`
`partnership
`estate
`
`His
`
`citing
`
`Patton
`
`Circuit
`
`Sixth
`
`'93.
`
`legal
`claims
`
`these
`partnership.
`if
`would
`
`would
`claim
`
`matter,
`Robertson
`the
`is
`
`362
`
`Section
`because
`debtor
`
`does
`the
`
`he
`
`(a)
`(1)
`is
`not
`Robertson's
`not
`entitle
`
`and
`does
`
`the
`the
`Circuit
`
`partnership
`automatic
`law
`
`stay.
`because
`8 F.3d.
`it
`subject
`not
`Robertson
`
`that's
`343,
`
`is
`
`what
`page
`clear
`to
`
`the
`
`personally
`
`is
`348,
`that
`
`stay
`and
`
`to
`
`prevail,
`individually
`the
`
`alleged
`
`monetary
`while
`bankrupt
`
`the
`
`versus
`
`Bearden,
`Additionally,
`claims
`are
`are
`against
`
`[Cartinhour]
`be
`owed
`assets
`remain
`for
`agreements
`
`were
`Robertson
`by
`therefore
`and
`uneffected
`rescission
`and
`by
`
`[sic]
`to
`res