Compliance With Charging Orders
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2021.02.15 ... Debtor’s Large LLC Distribution To Circumvent Charging Order Draws Ire Of Non-Debtor Member In Bargreen Wholesaler Equity Development Corp. v. Bargreen, 2021 WL 321560 (W.D.Wa., Feb. 1, 2021).
Wholesaler Equity Development Corp. v. Bargreen, 2021 WL 321560 (W.D.Wa., Feb. 1, 2021).
- BMO Harris Bank N.A. v. Smith, 2020 WL 2914838 (June 3, 2020). https://chargingorder.com/opinion-2020-kansas-bmo-distributions-transfer-charging-order.html
2020.06.20 ... Payment Of Distributions Directly To Creditor Holding A Charging Order Deemed Appropriate In BMO Case
- BMO Harris Bank N.A. v. Smith, 2020 WL 2914838 (June 3, 2020). https://chargingorder.com/opinion-2020-kansas-bmo-distributions-transfer-charging-order.html
2020.11.26 ... Contempt Not Precluded By Charging Order Exclusivity In Gengs
- Grengs v. Grengs, 2020 ND 242, 2020 WL 6793355 (N.D., Nov. 19, 2020). https://chargingorder.com/opinion-2020-north-dakota-gengs-charging-order-exclusive-remedy.html
Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).
- Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018). https://chargingorder.com/opinion-2018-california-garcia-charging-order.html
Ex Parte SE Property Holdings LLC (SE Property Holdings, LLC v. Harrell), 2021 WL 5145446 (Ala., Nov. 5, 2021). https://chargingorder.com/opinion-2021-alabama-se-property-charging-order-compliance-contempt.html
Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018). Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018). https://chargingorder.com/opinion-2018-illinois-golfwood-square-charging-order.html
2014.01.30 ... Charging Orders And The Contemptuous Partnership Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014). Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014). https://chargingorder.com/opinion-2014-arkansas-joslin-brothers-charging-order.html
2013.02.24 ... Simply Ignoring Court Orders Is Not The Best Strategy Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013).
- Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013). https://chargingorder.com/opinion-2013-louisiana-jonesfilm-charging-order.html
2012.06.22 ... Owner Of Debtor LLC Goes To Jail For Contempt For Interfering With Foreclosure Sale In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012).
- In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012). https://chargingorder.com/opinion-2012-north-carolina-cowstone-charging-order.html
Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).
- Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011). https://chargingorder.com/opinion-2011-connecticut-buckeye-retirement-charging-order.html
Earthgrains Baking Companies, Inc. v. Sycamore Family Bakery, Inc., 2019 WL 6001940 (D.Utah, Nov. 14, 2019).
- Earthgrains Baking Co. v. Sycamore Family Bakery, Inc., D.Utah Case No. 09CV523 (Aug. 21, 2015). https://chargingorder.com/opinion-2015-utah-earthgrains-charging-order.html
2018.04.22 ... Creditor Fails To Prove Up Contempt For Violating Charging Order In SE Property SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). https://chargingorder.com/opinion-2018-alabama-se-property-charging-order.html
- SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). https://chargingorder.com/opinion-2018-alabama-se-property-charging-order.html
2018.04.22 ... Creditor Fails To Prove Up Contempt For Violating Charging Order In SE Property SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). https://chargingorder.com/opinion-2018-alabama-se-property-charging-order.html
2018.04.22 ... Creditor Fails To Prove Up Contempt For Violating Charging Order In SE Property SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). https://chargingorder.com/opinion-2018-alabama-se-property-charging-order.html
- SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). https://chargingorder.com/opinion-2018-alabama-se-property-charging-order.html
- Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018).
- Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).
- SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018).
- Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).
Ex Parte SE Property Holdings LLC (SE Property Holdings, LLC v. Harrell), 2021 WL 5145446 (Ala., Nov. 5, 2021).
2021.02.15 ... Debtor’s Large LLC Distribution To Circumvent Charging Order Draws Ire Of Non-Debtor Member In Bargreen Wholesaler Equity Development Corp. v. Bargreen, 2021 WL 321560 (W.D.Wa., Feb. 1, 2021).
- BMO Harris Bank N.A. v. Smith, 2020 WL 2914838 (June 3, 2020). https://chargingorder.com/opinion-2020-kansas-bmo-distributions-transfer-charging-order.html
2020.06.20 ... Payment Of Distributions Directly To Creditor Holding A Charging Order Deemed Appropriate In BMO Case
- BMO Harris Bank N.A. v. Smith, 2020 WL 2914838 (June 3, 2020). https://chargingorder.com/opinion-2020-kansas-bmo-distributions-transfer-charging-order.html
2020.11.26 ... Contempt Not Precluded By Charging Order Exclusivity In Gengs
- Grengs v. Grengs, 2020 ND 242, 2020 WL 6793355 (N.D., Nov. 19, 2020). https://chargingorder.com/opinion-2020-north-dakota-gengs-charging-order-exclusive-remedy.html
Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).
- Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018). https://chargingorder.com/opinion-2018-california-garcia-charging-order.html
2018.04.22 ... Creditor Fails To Prove Up Contempt For Violating Charging Order In SE Property SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). https://chargingorder.com/opinion-2018-alabama-se-property-charging-order.html
Ex Parte SE Property Holdings LLC (SE Property Holdings, LLC v. Harrell), 2021 WL 5145446 (Ala., Nov. 5, 2021). https://chargingorder.com/opinion-2021-alabama-se-property-charging-order-compliance-contempt.html SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018). Ex Parte SE Property Holdings LLC (SE Property Holdings, LLC v. Harrell), 2021 WL 5145446 (Ala., Nov. 5, 2021).
Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018). Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018). https://chargingorder.com/opinion-2018-illinois-golfwood-square-charging-order.html
2014.01.30 ... Charging Orders And The Contemptuous Partnership Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014). Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014). https://chargingorder.com/opinion-2014-arkansas-joslin-brothers-charging-order.html
2013.02.24 ... Simply Ignoring Court Orders Is Not The Best Strategy Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013).
- Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013). https://chargingorder.com/opinion-2013-louisiana-jonesfilm-charging-order.html
2012.06.22 ... Owner Of Debtor LLC Goes To Jail For Contempt For Interfering With Foreclosure Sale In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012).
- In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012). https://chargingorder.com/opinion-2012-north-carolina-cowstone-charging-order.html
Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).
- Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011). https://chargingorder.com/opinion-2011-connecticut-buckeye-retirement-charging-order.html
Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014).
Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013).
In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012).
- Earthgrains Baking Co. v. Sycamore Family Bakery, Inc., D.Utah Case No. 09CV523 (Aug. 21, 2015). https://chargingorder.com/opinion-2015-utah-earthgrains-charging-order.html
- Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).
Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).
COMPLIANCE WITH CHARGING ORDER OPINIONS
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COMPLIANCE ARTICLES
- 2021.02.15 ... Debtor’s Large LLC Distribution To Circumvent Charging Order Draws Ire Of Non-Debtor Member In Bargreen
- 2020.06.20 ... Payment Of Distributions Directly To Creditor Holding A Charging Order Deemed Appropriate In BMO Case
- 2020.11.26 ... Contempt Not Precluded By Charging Order Exclusivity In Gengs
- 2018.09.16 ... Debtor's Access To LLC Assets For His Personal Purposes Leads To Turnover Order In Golfwood Square
- Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018).
- 2018.05.31 ... LLC Manager's Fiduciary Duty Possibly Breached By Not Making A Distribution To Creditor In Garcia
- Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).
- 2018.04.22 ... Creditor Fails To Prove Up Contempt For Violating Charging Order In SE Property
- SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018).
- 2014.01.30 ... Charging Orders And The Contemptuous Partnership
- 2013.02.24 ... Simply Ignoring Court Orders Is Not The Best Strategy
- 2012.06.22 ... Owner Of Debtor LLC Goes To Jail For Contempt For Interfering With Foreclosure Sale
- 2011.8.10 ... Buffa's Bad Tuna: Debtor Owning 99% Of LLC Attempts To Dodge Charging Order By Paying Oversized Salary To Wife
COMPLIANCE WITH CHARGING ORDER OPINIONS
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Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018).
Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).
SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018).
Topic Compliance
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COMPLYING WITH CHARGING ORDER OPINIONS
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COMPLIANCE WITH CHARGING ORDER OPINIONS
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(:title TEXT:) (:Summary: TEXT:) (:description TEXT:) (:keywords charging order, TEXT:)
(:title Compliance With Charging Orders:) (:Summary: Remedies to compel compliance with charging order:) (:description Remedies to compel compliance with charging order:) (:keywords charging order, comply, compliance, contempt, noncompliance:)
The Harmonized Acts make no provisions for a court to enforce a charging order, thus leaving the presumption that the appropriate remedy sounds in contempt.
Acts of non-compliance with a charging order typically fit into the following categories:
1. Non-compliance by the entity, by decision of the debtor/member ("D/M");
2. Non-compliance by the entity, by decision another member;
3. Non-compliance by the D/M; and
4. Collusive non-compliance by the D/M, the entity, and/or other members.
There is also a distinction to be drawn between willful non-compliance (what contempt requires) and non-willful non-compliance (i.e., negligence) for which contempt is not available and the creditor's remedy would sound in damages.
The contempt remedy requires the creditor to obtain an Order to Show Cause (OSC) re Contempt (still known in some states as a Writ of Fieri Facias), and go through a lengthy evidentiary hearing process. Conversely, damages for a negligent distribution are usually remedied through a creditor's suit or similar device, similar to where a bank allows a debtor to withdraw money pending a levy. It is probably satisfactory for an expanded Comment to explain this difference.
The non-compliance may also be divided between the making of a distribution to the D/M in violation of the charging order, and the making of so-called "imputed income" to the D/M by paying the D/M's expenses, such as credit cards, car leases, etc. This issue probably requires a change to § 503 to make it clear that all consideration of any kind passing to a D/M is subject to the charging order, and that the entity is directly liable to the creditor for a like amount of the consideration given by the entity but not distributed to the creditor.
COMPLYING WITH CHARGING ORDER OPINIONS
Ex Parte SE Property Holdings LLC (SE Property Holdings, LLC v. Harrell), 2021 WL 5145446 (Ala., Nov. 5, 2021).
Earthgrains Baking Companies, Inc. v. Sycamore Family Bakery, Inc., 2019 WL 6001940 (D.Utah, Nov. 14, 2019).
Golfwood Square LLC v. O'Malley, 2018 IL App (1st) 172220-U, 2018 WL 4370875 (Ill.App., Unpublished, Sept. 11, 2018).
Garcia v. Garcia, 2018 WL 2316522 (Cal.App. Distr. 5, Unpublished, May 22, 2018).
SE Property Holdings, LLC v. The Rookery, LLC, S.D.Ala. Civil No. 11-0014-WS-C (April 13, 2018).
Joshlin Bros. Irrigation v. Sunbelt Rental, Inc., 2014 WL 248104, 2014 Ark. App. 65 (Ark.App., Unpublished, Jan. 22, 2014).
Seven Arts Pictures, Inc. v. Jonesfilm, 2013 WL 599661 (5th Cir., Feb. 18, 2013).
In re Cowstone, LLC, 2012 WL 2205565 (Bkrtcy.E.D.N.C., Slip Copy, June 14, 2012).
Buckeye Retirement Co. v. Buffa, 2011 WL 6299681 (D.Conn., Dec. 16 2011).
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