Landmark Property Development, L.L.C., et al. v. Silver

0:08-ap-00563MdbNov 12, 2008

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IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In Re: 	Case No. 08-16800PM
Chapter 11
Vox IV, LCC, et al.,
Jointly Administered with
Debtors. 	Case No. 08-16803PM
Landmark Property Development, 	AP No. 08-00563PM
LLC and Scott Herrick,
Plaintiffs/
Counter-Defendants
v.
Michael Silver and Hess Farm
Partnership,
Defendants/
Counter-Plaintiffs.
MEMORANDUM OF DECISION
This adversary proceeding was filed by Landmark Property Development,
LLC and Scott Herrick in the Circuit Court for Prince George’s County on
November 21, 2007, and thereafter transferred to the Circuit Court for Charles
County. The progress of this case is described in the Memorandum to Counsel
Following Status Conference (#26) that accompanied this court’s October 21, 2008,
Order to Show Cause why this complaint and counterclaim should not be remanded
to the Circuit Court for Charles County. The court will not repeat what was said in
Signed: November 10, 2008
SO ORDERED
Entered: November 12, 2008 Case 08-00563 Doc 39 Filed 11/12/08 Page 1 of 4
1 In bankruptcy, unlike other civil actions, either the defendant or the
plaintiff may remove an action related to a pending bankruptcy case to the district
court for the district where the civil action is pending. 28 U.S.C. § 1452.
2 This relief need not have been sought by way of an adversary proceeding,
see Fed. R. Bankr. Proc. 7001(9), as the relief sought by Michael Silver does not
relate to the “foregoing” of that Rule.
that Memorandum, other than to note that of the 21 counts of the amended
complaint and the counterclaim, only one could to the slightest degree be considered
a core action, and that one count can be dealt with easily either in the form of a
contested matter or an adversary proceeding. 1 It is inappropriate to use that one
count as a wedge to bring the remainder of the dispute that does not concern the
Debtors directly into this court.
The Plaintiffs filed a timely 14-page Response (#34) urging that this court
has related jurisdiction. That Response merely underscores the essence of this
dispute that is one between the Plaintiffs on one side and Michael Silver on the
other. They urge that they can file an amended complaint that would clearly create
jurisdiction for the court. The court is unconvinced by this argument and sees no
reason to delay this decision on that account. Michael Silver filed an “Initial
Response” (#36) that he does not oppose this court retaining jurisdiction, that he be
granted additional time to respond to the Order to Show Cause and if the case is
remanded that this court retain jurisdiction to award costs and fees under 28 U.S.C.
§ 1447(c). He also seeks a declaration by a motion filed October 27, 2008, (#30) that
the law firm representing him in this matter never served as counsel for Scott
Herrick in connection with the Vox-Pulte dispute or otherwise.2
The court finds that the eleventh hour assertion that Patrick Potter and his
firm are conflicted that is set out in a letter dated October 27, 2008, from Scott
Herrick’s attorney to Patrick Potter is one more attempt to stall this litigation.
They initially appeared as attorneys of record for the Defendants in the state court
action on January 3, 2008. If there is any merit to the contention of a conflict, the
Circuit Court can deal with it upon remand.
Case 08-00563 Doc 39 Filed 11/12/08 Page 2 of 4
The court declines to enter an order awarding costs and expenses. The court
cannot say that this is a case in which “a ‘cursory examination would have revealed’
a lack of federal jurisdiction.”
See In re Lowe, 102 F.3d 731, 733 n.2 (CA4 1996)
(
quoting Husk v. E.I. Du Pont De Nemours & Co., 842 F.Supp. 895, 899
(S.D.W.Va.1994)). The term “related to a bankruptcy case” is sufficiently
ambiguous to require more than a cursory examination by someone unfamiliar with
bankruptcy jurisdiction.
An appropriate orders will be entered.
cc: 	Landmark Property Development, L.L.C., et al.
c/o Stephen B. Gerald
Whiteford, Taylor & Preston L.L.P.
7 Saint Paul Street
Baltimore, MD 21202
Brent C. Strickland
Stephen B. Gerald
Seven St. Paul Street
Suite 1800
Baltimore, MD 21202-1626
Michael Silver
3500 Hess Road
Monkton, MD 21111
Patrick John Potter
Pillsbury Winthrop Shaw Pittman, LLP
2300 N Street, NW
Washington, DC 20037-1128
Vox IV, LLC
3500 Hess Road
Monkton, MD 21111
Alan M. Grochal
Catherine Keller Hopkin
Tydings and Rosenberg
100 E. Pratt Street., Fl. 26
Baltimore, MD 21202
Case 08-00563 Doc 39 Filed 11/12/08 Page 3 of 4
Vox VII, LLC
c/o Alan M. Grochal
Tydings & Rosenberg LLP
100 East Pratt St.
26th Floor
Baltimore, MD 21202
U.S. Trustee
Leander D. Barnhill
6305 Ivy Lane
Suite 600
Greenbelt, MD 20770
Sharon L. Hancock, Clerk
Circuit Court for Charles County, Maryland
P.O. Box 970
La Plata, Maryland 20646
End of Memorandum
Case 08-00563 Doc 39 Filed 11/12/08 Page 4 of 4

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