.jpg)
All funds from Listing Agreements Demanded by Chapter 7 =
I do not really see the referral fee analysis. Your client is an employeeof the corporation who is entitled to be paid for his postpetition
efforts. That compensation is a debt the corporation owes that must be paid
before or as part of any liquidation of the corporation by the Chapter 7 trustee
as the corporation's sole shareholder. Hopefully the corporation was
structured to pay your client some sort of salary/base compensation amount or
fixed percentage of revenue as an employee and then profits (if any) afteroverhead expenses distributed to the shareholder. Otherwise you will needto make some sort of quantum meruit argument as to appropriate compensation
for the client as an employee. Your client is actually doing all the workso that is why I do not see the applicability of the referral fee analogy.
Mark T. Jessee
Law Offices of Mark T. Jessee
"A Debt Relief Agency"
50 W. Hillcrest Drive, Suite 200
Thousand Oaks, CA 91360
(805) 497-5868 (805) 497-5864 (Facsimile)
In a message dated 5/13/2014 8:08:38 P.M. Pacific Daylight Time,
cdcbaa@yahoogroups.com writes:
Thank you Jason and Vernon.
I had another meeting with the client about this and realized thereanother wrinkle.
He has a corporation he conducts his real estate business through, so
there is no direct connection between the listing agreement and the estate.
The Trustee only has a claim on the stock of the corporation.
Unfortunately, there are not too many debts of the corporation to offset
this asset, but certainly the overhead and other factors wou ld diminish
the Trustees share.
Thinking on it more, the value of the listing agreement is probably
similar to the referral fee that would be paid for a client before the work is
done, not the value of the entire commission.
Negotiating this is going to be a bear, if thats the way I go, because
this Trustee is tough and taking the position that Please inform your
clients that any commission that is received on those listing agreements is
property of the estate and they have a statutory duty to promptly turnover to me.
rporation and
the value that passes through does not include the postpetition work.
Anyway, thanks for the input.
Steve
Sent: Tuesday, May 13, 2014 5:31 PM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] RE: All funds from Listing Agreements Demanded by
Chapter 7 Trustee
I had that happen recently. We negotiated a settlement that I think was
unfair to the client but client did not have money to fight a potential
motion by the trustee. Fact specific arguments.
Vernon L. Ellicott, Esq.
Certified Family Law Specialist
California State Bar Board of Legal Specialization
A Bankruptcy and Family Law Firm
Law Offices of Vernon L. Ellicott
325 E. Hillcrest Drive, Suite 150
Thousand Oaks, CA 91360-7799
(805) 446-6262 Phone
(661) 222-2922 Phone
(805) 446-6264 Fax
This e-mail transmission and any documents, files, or previous e-mail
messages attached to it, may contain confidential information from the LAWOFFICES OF VERNON L. ELLICOTT that is legally privileged. If you are not the
intended recipient, or a person responsible for delivering it to the
intended recipient, you are hereby notified that any disclosure, copying,distribution or use of any of the information contained in or attached to this
message is STRICTLY PROHIBITED. If you received this transmission in error,
please immediately not ify us by reply e-mail, or by telephone at (805)
446-6262, and destroy the original transmission and its attachments and all
copies of any kind, without reading them or saving them in any way. Thankyou.
A bad day on the bike is better than a good day on the golf course!
_[mailto:cdcbaa@yahoogroups.com]_ (mailto:[mailto:cdcbaa@yahoogroups.com]) Sent: Tuesday, May 13, 2014 5:07 PM
To: _cdcbaa@yahoogroups.com_ (mailto:cdcbaa@yahoogroups.com)
Subject: [cdcbaa] All funds from Listing Agreements Demanded by Chapter 7 Trustee
List mates:
I have a client who is a realtor and broker, and had 3 listing agreementspending when he filed his case.
There were no offers or escrows on any of the listing agreements on the
petition date. One did not sell and the others sold.
Trustee is requesting all the monies from the 2 that sold, even though myclient did all the work postpetition. Actually, he had no idea what soldor not, he just said he wants all the money.
I know that demand is overreaching, but how do I separate the prepetitionvalue in the Listing Agreements had as potential escrows from the value
that came out of the actual escrows postpetition?
Anyone dealt with this or have any advice/words of wisdom?
Steve
Law Offices of Steven B. Lever
>
> Steven B. Lever
>( Tel. (562) 436-5456 ext. 1
>( Fax (562) 485-6886
>* sblever@leverlaw.com
> _www.leverlaw.com_ (http://www.leverlaw.com/)
I do not really see the referral fee analysis. Your client is anemployee of the corporation who is entitled to be paid for his postpetitionefforts. That compensation is a debt the corporation owes that must be
paid before or as part of any liquidation of the corporation by the
Chapter 7 trustee as the corporation's sole shareholder. Hopefully
the corporation was structured to pay your client some sort of
salary/base compensation amount or fixed percentage of revenue as an
employee and then profits (if any) after overhead expenses distributed to
the shareholder. Otherwise you will need to make some sort of quantummeruit argument as to appropriate compensation for the client as an
employee. Your client is actually doing all the work so that is why I do
not see the applicability of the referral fee analogy.
Mark T.
JesseeLaw Offices of Mark T. Jessee"A Debt Relief Agency"50 W.Hillcrest Drive, Suite 200Thousand Oaks, CA 91360(805) 497-5868 (805)
497-5864 (Facsimile)
In a message dated 5/13/2014 8:08:38 P.M. Pacific Daylight Time,
cdcbaa@yahoogroups.com writes:
Thank you Jason and
Vernon.
I had another meeting with the
client about this and realized theres another wrinkle.
He has a corporation he
conducts his real estate business through, so there is no direct connection
between the listing agreement and the estate. The Trustee only has a
claim on the stock of the corporation.
Unfortunately, there are not
too many debts of the corporation to offset this asset, but certainly the
overhead and other factors wou ld diminish the Trustees
share.
Thinking on it more, the value
of the listing agreement is probably similar to the referral fee that would be
paid for a client before the work is done, not the value of the entire
commission.
Negotiating this is going to
be a bear, if thats the way I go, because this Trustee is tough and taking
the position that Please inform your clients that any commission that is
received on those listing agreements is property of the estate and they have a
statutory duty to promptly turnover to me. It is not property of the
estate because its in the corporation and the value that passes through does
not include the postpetition work. &nbs p;
Anyway, thanks for the
input.
Steve
From: cdcbaa@yahoogroups.com
[mailto:cdcbaa@yahoogroups.com] Sent: Tuesday, May 13, 2014 5:31
PMTo: cdcbaa@yahoogroups.comSubject: [cdcbaa] RE: All
funds from Listing Agreements Demanded by Chapter 7
Trustee
The post was migrated from Yahoo.