Kevin W. Palmer

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: 	:
:
KEVIN W. PALMER 	: 	Case No. 08-11619PM
:
Debtor 	:
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WELLS FARGO BANK, N.A. 	:
Movant 	:
vs. 	:
:
KEVIN W. PALMER 	:
ROBIN RANDOLPH TALBOTT, 	:
Co-Debtor 	:
Respondents 	:
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MEMORANDUM OF DECISION
Before the court is the Motion for Relief from Stay filed by Wells Fargo Bank, N.A.
(“Wells Fargo”). Wells Fargo is secured by the first lien on property of the Debtor and his
spouse, Robin Randolph Talbott, located at 26626 Ridge Road, Damascus, Maryland. At the
time the Motion was filed the amount due was said to be $116,636.38. There is no testimony as
to the value of the subject property other than Debtor’s valuation in Schedule D of $400,000.00.
Inasmuch as the moving party has the burden of proof on the issue of equity in the property
under § 362(g)(1) of the Bankruptcy Code, the court finds that the Movant is massively
oversecured. The property is also subject to a lien securing one Richard L. Toomey that is said
Date signed June 12, 2008
Entered: June 13, 2008 Case 08-11619 Doc 34 Filed 06/13/08 Page 1 of 3

to be $220,000.00. No proof of claim was filed by Mr. Toomey, and the court understands that
he is a business associate of Mr. Palmer or his wife.
This is the third filing by the Debtor or his wife, Robin R. Talbott. Previously, she filed
Case No. 07-12812 on March 27, 2007, that was later dismissed on November 27, 2007, upon
her failure to confirm a plan. Subsequently, she filed Case No. 08-10053 on January 2, 2008,
and this case is pending. Kevin W. Palmer filed this case under Chapter 13 on February 6, 2008.
The Debtor’s spouse owns very valuable property known as 122 S. Van Buren Street,
Rockville, Maryland, with her brother. That property is subject to an Order of court granting
relief from the stay effective November 10, 2008.
The response filed by the Debtor to the instant Motion does not take issue with the facts
stated in Wells Fargo’s Motion, only with its conclusion. Mr. Palmer explains that he and his
wife, who are essentially unemployed, are involved in a project “to finish the efficient
manufacture, production and sale of bone marrow testing reagents for the transplant of bone
marrow in leukemia and lymphoma patients.” He anticipates that the company will be funded
successfully and that will enable them to meet the obligations to the secured creditors.
Wells Fargo argues at paragraph 5 of its Motion that it lacks adequate protection for its
security interest and continues to be irreparably harmed by the continuation of the automatic stay
and that constitutes cause for relief from the stay. The court disagrees. An equity cushion in the
magnitude presented in this case has been uniformly held to constitute adequate protection of the
interests of the secured party. See, In re Mendoza, 111F.3d 1264, 1272 (CA5 1997); In re
Nichols, 440 F.3d 850 (CA6 2006); In re Mellor, 734 F.2d 1396, 1400 (CA9 1984). “Case law
has almost uniformly held that an equity cushion of 20% or more constitutes adequate
protection.” In re Kost, 102 B.R. 829, 831 (BC Wyo. 1989). Furthermore, from a practical
standpoint, Wells Fargo has substantial protection of its interest in the form of the junior lien.
The only party at risk in this situation is Mr. Toomey, whose claim is scheduled in the sum of
$200,000.00. While Mr. Toomey has not seen fit to file a proof of claim in any of the three
Palmer-Talbott cases, it is impossible to conceive that he would allow the property to go to a
foreclosure sale that would wipe out his interests. His position is a further guaranty of the Wells
Fargo loan.
An appropriate order will be entered.
Case 08-11619 Doc 34 Filed 06/13/08 Page 2 of 3

cc:
Brian S. McNair, 1861 Wiehle Avenue, Suite 300, Reston, VA 20190
Kevin W. Palmer, 122 S. Van Buren Street, Rockville, MD 20850
Robin Randolph Talbott, 122 S. Van Buren Street, Rockville, MD 20850
Timothy P. Branigan, Esquire, P.O. Box 1902, Laurel MD 20725-1902
Nancy S. Grigsby, Trustee, P.O. Box 958, Bowie, MD 20718
End of Memorandum
Case 08-11619 Doc 34 Filed 06/13/08 Page 3 of 3