Butler Innovative Solutions, Inc.

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
BUTLER INNOVATIVE SOLUTIONS,
INC.,
Debtor.
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Case No. 08-00065
(Chapter 7)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND ORDER DIRECTING THE
OFFICE OF THE UNITED STATES MARSHAL SERVICE TO
APPREHEND JOHN A. BUTLER AND TAKE HIM INTO CUSTODY
Pursuant to the motion of the petitioning creditors in this
involuntary bankruptcy case, the court issued its Order For
Designated Individuals To Appear and Show Cause dated June 17,
2008. 	On June 18, 2008, the clerk entered that Order and it was
mailed to John A. Butler and Keith H. Barkley on June 20, 2008.
The Order directed Mr. Butler and Mr. Barkley to appear on
July 8, 2008, and show cause why they ought not be held in
contempt for failing to comply with the court’s Order Designating
Officers as Debtor, Compelling the Debtor and Designated Officers
to File Documents, and Striking Earlier Entered Order (Docket
Entry No. 27, entered May 1, 2008). 	This court’s Order
Designating Officers as Debtor, Compelling the Debtor and
The order below is hereby signed.
Signed: July 25, 2008.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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Designated Officers to File Documents, and Striking Earlier
Entered Order, provided that John A. Butler and Keith H. Barkley
“are hereby designated to be the Debtor, Butler Innovative
Systems, Inc., in this case for all purposes.” 	Accordingly, both
Mr. Butler and Mr. Barkley are subject to this court’s power to
compel the debtor’s attendance for examination. 	That order
further had directed Mr. Butler and Mr. Barkley by May 16, 2008,
to “file the list of creditors, schedules of assets and
liabilities, schedule of executory contracts and unexpired
leases, and statement of financial affairs required by 11 U.S.C.
§ 521(a)(1) and Interim Bankruptcy Rule 1007(a) and (b).” 	The
order was clear and unambiguous, but the required papers have
still not been filed.
The court conducted a hearing on the Order for Designated
Individuals to Appear and Show Cause on the specified date of
July 8, 2008, but John A. Butler and Keith H. Barkley failed to
appear at the hearing or to show cause why they should not be
held in civil contempt. 	The court found that the record
constituted clear and convincing evidence that John A. Butler and
Keith H. Barkley were in civil contempt, finding specifically (1)
that John A. Butler, Keith H. Barkley and the Debtor have failed
to comply with this Court’s Order Designating Officers as Debtor,
Compelling the Debtor and Designated Officers to File Documents,
and Striking Earlier Entered Order (Docket Entry No. 27, entered
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May 1, 2008), and (2) that civil contempt is appropriate
including imposition of a coercive monetary fine and a
compensatory sanction awarding attorneys fees to the petitioning
creditors for such fees incurred with respect to the prosecution
of the motion. 	In accordance with the foregoing, On July 10,
2008, this court issued an Order Holding Debtor’s Principals in
Civil Contempt, and that order was entered by the clerk on July
11, 2008, and mailed to John A. Butler and Keith H. Barkley on
July 13, 2008. 	That order provided as follows:
ORDERED that commencing on Tuesday, July 15, 2008,
John A. Butler and Keith H. Barkley, jointly and
severally, shall be liable for a coercive fine of $100
per day for each day after July 14, 2008, that the
obligations imposed upon them by the Order Designating
Officers as Debtor, Compelling the Debtor and
Designated Officers to File Documents, and Striking
Earlier Entered Order, entered May 1, 2008 (Docket No.
27), remain unfulfilled; and it is further
ORDERED that the petitioning creditors, Suddath
Relocation Systems of Maryland, Inc. d/b/a Suddath
Relocation Systems, The Kane Company, and Project
Solutions Group, Inc., shall recover of John A. Butler
and Keith H. Barkley, jointly and severally, their
legal fees in pursuing the contempt motion, with
payment of this compensatory contempt sanction to be
delivered to the law firm of Scopelitis, Garvin, Light,
Hanson & Feary, P.C., on behalf of the petitioning
creditors in an amount to be determined by separate
order pursuant to a statement of attorneys’ fees filed
by that firm on 14 days notice to Mr. Butler and Mr.
Barkley of an opportunity to object to the
reasonableness of the fees and expenses requested; and
it is further
ORDERED that this matter is set over for further
hearing on July 22, 2008, at 10:30 a.m., to determine
whether Mr. Butler and Mr. Barkley have purged
themselves of contempt, at which time the Court will
consider additional relief pursuant to the movants’
request for civil contempt sanctions, including
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entering a judgment for coercive contempt sanctions
that have accrued, and addressing what further coercive
contempt sanctions are appropriate in the event that
compliance with the Court’s Order of May 1, 2008, has
not been achieved, including considering incarcerating
Mr. Butler and Mr. Barkley as a coercive contempt
sanction until they purge themselves of contempt; and
it is
ORDERED that Mr. Butler or Mr. Barkley are each
warned that if he fails to appear on July 22, 2008, at
10:30 a.m., the court may issue a bench warrant to have
the United States Marshal haul that individual before
the court in order to proceed with addressing the
contempt motion, and that an arrest pursuant to such a
bench warrant may result in the individual’s being
incarcerated until the court can conduct the civil
contempt hearing.
On July 22, 2008, pursuant to the court’s Order Holding Debtor’s
Principals in Civil Contempt, the court conducted a hearing to
determine whether Mr. Butler and Mr. Barkley have purged
themselves of contempt. 	Neither Mr. Butler nor Mr. Barkley
appeared at the July 22, 2008 hearing, as directed, nor did they
make any showing that they have purged themselves of contempt.
The record constitutes clear and convincing evidence that Mr.
Butler and Mr. Barkley are, once again, in civil contempt.
Based upon the foregoing, the court finds (1) that Mr. Butler and
Mr. Barkley, in addition to having failed to comply with the
court’s earlier Order Designating Officers as Debtor, Compelling
the Debtor and Designated Officers to File Documents, and
Striking Earlier Entered Order, have now also failed to comply
with this court’s Order Holding Debtor’s Principals in Civil
Contempt, and (2) that, in addition to the coercive monetary fine
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1 	The 100 miles should be measured by a straight line or,
as it is commonly referred to, “as the crow flies.” 	See Hill v.
Equitable Bank, Nat. Ass’n, 115 F.R.D. 184, 186 (D. Del. 1987).
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previously imposed and still in place, it may be appropriate to
incarcerate Mr. Butler and Mr. Barkley as an additional coercive
contempt sanction until they purge themselves of contempt by
complying with the order entered on May 1, 2008. 	In any event,
they should be brought before the court so that the court can
address whether that sanction (or some other coercive sanction)
is necessary.
In light of the foregoing, and in accordance with Fed. R.
Bankr. P. 2005, and this court’s inherent powers, it is
ORDERED that the Office of the United States Marshal Service
apprehend John A. Butler and bring him into custody. 	If John A.
Butler is apprehended within the District of Columbia, or at a
place less than 100 miles from the E. Barrett Prettyman U.S.
Courthouse, 333 Constitution Avenue, NW, Washington, D.C.,
20001, 1 he shall be brought before this court (or, if a judge of
this court is unavailable, before a United States Magistrate
Judge or a United States District Court Judge of this district)
without unnecessary delay:
• 	If conditions ensuring the appearance of John A. Butler
before this court can be arranged, John A. Butler shall
be released.
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• 	In the event that conditions ensuring John A. Butler’s
appearance can not be arranged, John A. Butler shall
remain incarcerated until such time as his appearance
before this court can be arranged.
IT IS FURTHER ORDERED that if the United States Marshal
finds John A. Butler in a place more than 100 miles from the E.
Barrett Prettyman U.S. Courthouse, 333 Constitution Avenue, NW,
Washington, D.C., 20001, John A. Butler shall be taken into
custody pursuant to this order and removed in accordance with the
following: he shall be brought without unnecessary delay before
the nearest available United States Magistrate Judge, Bankruptcy
Judge, or District Judge. 	If, after hearing, he or she finds
that the person in custody is John A. Butler, or if the person in
custody waives a hearing in that regard, the Magistrate Judge,
Bankruptcy Judge, or District Judge shall issue an order of
removal, but John A. Butler shall be released if conditions are
arranged ensuring his prompt appearance before this court.
[Signed and dated above.]
Copies to: Chapter 7 trustee; Office of United States Trustee;
Office of the United States Marshal;
Butler Innovative Solutions, Inc., Debtor
4705 Alcon Drive
Temple Hills, MD 20748-3717
John A. Butler
4705 Alcon Drive
Temple Hills, MD 20748-3717
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Keith H. Barkley
104 Bohemian Drive
Middletown, DE 19709-9282
Kim D. Mann, Esq.
Scopelitis, Garvin, Light, Hanson & Feary, P.C.
1850 M Street N.W., Ste. 280
Washington, D.C. 20036
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