Vicki Karen Hall

1:09-bk-00669DcbJan 28, 2010

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UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLUMBIA
In re
VICKI KAREN HALL,
Debtor.
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Case No. 09-00669
(Chapter 11)
Not for Publication in
West’s Bankruptcy Reporter
MEMORANDUM DECISION AND ORDER DISMISSING DEBTOR’S
EMERGENCY MOTION TO ENFORCE THE AUTOMATIC STAY AND SANCTIONS
The debtor, Vicki Karen Hall, has filed an Emergency Motion
to Enforce the Automatic Stay and Sanctions.
I
The facts alleged are these. 	Mrs. Hall is a 50% equity
owner of The Landing of Park Heights LLC. 	Richard W. Pifer owns
the remaining 50% equity interest in that entity. 	After Mrs.
Hall commenced her bankruptcy case, Mr. Pifer, through his
counsel, Stephen L. Pettler, Jr., sent a letter to Mrs. Hall and
R. William Hall, advising them that he is the sole member of Park
Heights, explaining that:
Mrs. 	Hall 	has 	been 	dissociated 	from 	[Park 	Heights]
pursuant to Section 10.04 of the Operating Agreement of
[Park 	Heights], 	as 	amended, 	due 	to 	her 	filing 	personal
bankruptcy. 	As such, she is no longer entitled to vote
Economic Units of the company owned by her.
The document below is hereby signed.
Signed: January 28, 2010.
_____________________________
S. Martin Teel, Jr.
United States Bankruptcy Judge
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The letter further advised that Mr. Pifer was terminating the
services of Mr. Hall to act as manager of Park Heights. 	These
acts harmed Mrs. Hall in the amount of $350.
In addition, Park Heights has engaged in sales of
condominium units at its real property in Winchester, Virginia.
Mrs. Hall believes that Mr. Pifer has not appropriately accounted
for the disbursements and releases of escrows incident to these
sales.
II
Mrs. Hall seeks to hold Mr. Pifer and his attorney in
contempt, alleging that their acts of terminating her shares in
taking control of Park Heights and in terminating Mr. Hall’s
employment violated the automatic stay of 11 U.S.C. § 362(a) and
violated 11 U.S.C. § 365(e).
A motion for contempt commences a contested matter and must
include notice under Local Bankruptcy Rule 9013-1(a)(3) and a
signed certificate of service reflecting that service was made in
a manner authorized by Fed. R. Bankr. P. 7004(a) (for example, by
mailing copies of the motion and notice to each individual at the
individual’s dwelling house or usual place of abode or place
where the individual regularly conducts a business or
profession).
The certificate of service to the motion recites that
service was made by first-class mail, postage paid, or in lieu
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thereof by electronic means. 	Service by electronic means is not
an authorized manner of making service of a paper commencing a
contested matter such as a motion for contempt. 	In addition, the
motion included no notice under LBR 9013-1(a)(3). 	Finally, it
was not served on Mr. Pifer. 	Accordingly, the motion must be re-
served.
III
With respect to the sales of condominium units by Park
Heights, Mrs. Hall seeks an order compelling Mr. Pifer to place
all current escrows concerning condominium unit sales at Park
Heights with bankruptcy counsel for an entity known as H&H
Construction & Investment, Inc. (whose bankruptcy case is pending
in this court). 	If Mrs. Hall succeeds in demonstrating that her
ownership interest in Park Heights was improperly terminated, she
may have the right to pursue causes of action as a shareholder
against Mr. Pifer, including a cause of action (if such exists)
to compel Mr. Pifer to turn over escrows to the bankruptcy
counsel for H&H. 	But any proceeding to recover money or property
must be commenced as an adversary proceeding pursuant to Federal
Rule of Bankruptcy Procedure 7001.
IV
For all of these reasons, it is
ORDERED that the Emergency Motion to Enforce the Automatic
Stay and Sanctions is dismissed without prejudice to seeking the
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4	O:\TEEL\Judge Temp Docs\Hall (Vicki) - Mem Decsn & Order Dismissing Contempt Mtn.wpd
requested relief anew in a procedurally correct manner.
[Signed and dated above.]
Copies to: Debtor; Office of United States Trustee; and:
Stephen J. Pettler, Jr., Esq.
Harrison & Johnston, PLC
21 South Loudoun Street
Winchester, VA 22601
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