Ralph Urban Development II, LLC

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
RALEIGH DIVISION
IN RE:
RALPH URBAN DEVELOPMENT II, LLC
DEBTOR
CASE NO.
07-02085-5-ATS
ORDER REGARDING MOTION TO ENFORCE SETTLEMENT AGREEMENT
AND ORDER APPOINTING INTERIM TRUSTEE
The matter before the court is the motion of creditor Milholland, LLC to enforce a settlement
agreement dated October 16, 2007, to which Milholland, the debtor, and other third parties are
signatories. A hearing was held in Raleigh, North Carolina on January 2, 2008, and continued to
January 8, 2008.
This involuntary chapter 7 petition was initiated on September 20, 2007, by Milholland, LLC
against Ralph Urban Development II, LLC. Milholland states in its motion that the debtor was at
that time being controlled by Karen Ralph, a 51% owner, and her husband Craig Ralph. Milholland
immediately sought appointment of an interim trustee on grounds that Mr. and Mrs. Ralph had failed
to attend to the financial affairs of the debtor and refused to communicate with Milholland. The
court held a hearing on the motion to appoint a trustee on September 27, 2007, and then continued
that hearing to allow the parties to discuss settlement.
SO ORDERED.
SIGNED this 09 day of January, 2008.
________________________________________
A. Thomas Small
United States Bankruptcy Judge
____________________________________________________________
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Mr. and Mrs. Ralph and Milholland met on October 16, 2007, and signed a settlement
agreement. 	The settlement agreement required the parties to undertake various measures and
actions, which Milholland contends the Ralphs have failed to do. Milholland therefore seeks an
order of the court enforcing all provisions of the settlement agreement. The agreement, although
signed by the debtor, is essentially between the debtor’s owners, who are not in bankruptcy.
At the conclusion of the hearing on January 8, the court advised the parties that the conflict
between them left the affairs of the debtor unmanaged, and that if the parties could not resolve their
issues by the following morning, the court would have no alternative but to appoint a trustee. The
parties were unable to do so and appointment of an interim trustee is necessary to both preserve the
property of the estate and to prevent loss to it. 11 U.S.C. § 303(g). 	The original request for an
interim trustee was made by Milholland, and the debtor now consents to the appointment of an
interim trustee. 	On the recommendation of the Bankruptcy Administrator, the court appoints
Richard D. Sparkman as interim chapter 7 trustee. 11 U.S.C. § 701(a)(1).
Accordingly, the Motion to Enforce Settlement Agreement is DENIED without prejudice
to possible enforcement by the trustee. Milholland’s request for appointment of an interim trustee
is ALLOWED, and Richard D. Sparkman is appointed interim trustee pursuant to 11 U.S.C. §
303(g).
SO ORDERED.
END OF DOCUMENT
Case 07-02085-5-JRL Doc 43 Filed 01/09/08 Entered 01/09/08 11:42:21 Page 2 of 2