Opinion
Case No. 07-21814-JS.
August 8, 2008
E. David Hoskins, Bar No. 06705, Law Offices of E. David Hoskins, LLC, Baltimore, Maryland, Attorney for William Hill and Pamela Hill.
Richard M. Goldberg, Bar No. 07994, Diarmuid F. Gorham, Bar No. 25859, Shapiro Sher Guinot Sandler, Baltimore, Maryland, Attorneys for Debtor.
WHEREAS, on January 16, 2002, William and Pamela Hill (the "Hills") on behalf of themselves and on behalf of a an unnamed class of potential claimants2 filed a complaint in the Circuit Court of Maryland for Baltimore City in a case styled William Hill, et al. v. Fieldstone Mortgage Company, et al., Case No. 24-C-02-000199 (the "Hill Litigation") seeking damages on account of alleged violations of the Maryland Secondary Mortgage Loan Law and Maryland Consumer Protection Act by Fieldstone Mortgage Company (the "Debtor") and several other named defendants in the suit; and
WHEREAS, on or about November 28, 2007 the Debtor filed a suggestion of bankruptcy, and the Hill Litigation was thereafter stayed; and
WHEREAS, Pamela Hill filed Proof of Claim No. 133 asserting claims against the estate in connection with the Hill Litigation in the aggregate amount of $32,714.87; and
WHEREAS, William Hill filed Proof of Claim No. 134 asserting claims against the estate in connection with the Hill Litigation in the aggregate amount of $32,714.87;
WHEREAS, the Hills contacted the Debtor to inform it of their intent to seek relief from the Automatic Stay imposed by Section 362 of the Bankruptcy Code to pursue the Hill Litigation; and
WHEREAS, the Debtor and the Hills have agreed to a limited consensual modification of the automatic stay to allow the Hills to pursue the Hill Litigation solely to the extent of available insurance coverage, contingent upon the Hills waiving any and all claims against the estate, and
WHEREAS, the Debtor and the Hills agree to the terms and conditions contained herein.
Now therefore, upon consideration of the foregoing, and for good cause shown, it is by the United States Bankruptcy Court for the District of Maryland (Baltimore Division),
ORDERED, that the Automatic Stay of Section 362 of the United States Bankruptcy Code is hereby modified with respect to the Hill Litigation to permit the Hills to proceed with the Hill Litigation upon the express condition that recovery for any judgment or other relief obtained against the Debtor in connection with the Hill Litigation shall be satisfied solely from, and limited to, the extent of available insurance coverage; and, it is further,
ORDERED, that Proof of Claim Number 133 (filed by Pamela Hill) is hereby DISALLOWED in its entirety; and, it is further,
ORDERED, that Proof of Claim Number 134 (filed by William Hill) is hereby DISALLOWED in its entirety; and, it is further, ORDERED, that the Hills hereby waive any and all claims, and shall be deemed to have no claims, against the estate of the Debtor.