In re Caruso Homes, Inc.

Full title: In re: Caruso Homes, Inc. et al. Chapter 11, Debtors, In re: Maryland…

Court: United States Bankruptcy Court, D. Maryland, (Baltimore Division)

Date published: Oct 16, 2008

Case Nos. 08-18254, 18256, 18260, 18261-62, 18264, 18267-71, 18274-87-JS, (Jointly Administered Under Case No. 08-18254-JS), Case No. 08-18286-JS (Bankr. D. Md. Oct. 16, 2008)

Opinion

Case Nos. 08-18254, 18256, 18260, 18261-62, 18264, 18267-71, 18274-87-JS, (Jointly Administered Under Case No. 08-18254-JS), Case No. 08-18286-JS.

October 16, 2008

Joel I. Sher, Shapiro Sher Guinot Sandler, Baltimore, MD, Counsel for Maryland Homes Palisades PA, LLC.

James R. Sheeran, L.M. Sandler Sons, Chesapeake, VA, Counsel for Sandler at Palisades, LLC.

Richard M. Kremen, DLA Piper LLP, Baltimore, MD, Counsel for Wachovia Bank, N.A.

STIPULATION AND CONSENT ORDER PROVIDING FOR ESCROW OF PROCEEDS OF SALE OF PROPERTY

JAMES SCHNEIDER, Bankruptcy Judge

Upon consideration of the Emergency Motion (the "Motion") of Maryland Homes Palisades PA, LLC ("MD Homes Palisades" or "Debtor") for entry of a Stipulation and Consent Order providing for the escrow of proceeds from the sale of one of Debtor's properties pending further order of this Court; the Parties² having stipulated that:

2 Capitalized terms not otherwise defined herein shall have the meanings ascribed to them on the Motion.

1. MD Homes Palisades has entered into a contract for the sale of one lot in the Palisades Development located in Upper Marlboro, Prince George's County, Maryland. The Debtor has contracted to sell Lot 31A to Ulysese Jefferson (the "Buyer") for the sum of $860,000. See Agreement of Purchase and Sale of Lot 31A, 301 Garden Gate Lane, Upper Marlboro, Maryland 20774 by and between the Debtor and the Buyer dated August 23, 2008, attached as Exhibit A to the Motion.

2. Wachovia Bank, N.A. ("Wachovia") has a consensual lien on the lot under contract. Specifically, Wachovia holds a first priority lien on Lot 31A property pursuant to the terms of an Indemnity Deed of Trust.

3. Sandler at Palisades, LLC ("Sandler"), by way of confessed judgment entered against the Debtor in the Circuit Court of Maryland for Prince George's County, has a judicial lien on the Palisades Development (as that term is defined in the Motion). The confessed judgment has not been modified, amended, or vacated at this time, although the Debtor disputes its validity and enforceability.

4. The exigency of this Emergency Motion is created by the need of MD Homes Palisades and the Buyer to go to settlement on the contract on October 16^th or 17^th, 2008.

5. Pursuant to the terms of the Order Authorizing Post-Petition Sales entered on June 26, 2008, the Debtor does not need an order of this Court to enter into the Contract.

6. The Debtor seeks to conclude this sale in a transparent and expeditious manner while preserving the rights of all of the Parties with respect to the aforementioned liens on the Palisades Project. The dispute between MD Homes Palisades, Wachovia, and Sandler regarding the nature, extent, and priority of the liens on the property has created a cloud on the title to the lot under contract.

7. The Parties agree that it is in the best interest of all concerned that this sale should go forward. Wachovia has agreed upon a release price and will release its lien as to the lot under contract. Additionally, Sandler will release its lien as to the lot under contract.

8. The Parties agree that from the proceeds resulting from closing the contract of sale, the amount of $15,000 should be placed in escrow pending further agreement of the Parties or Order of this Court.

IT IS, THEREFORE, by the United States Bankruptcy Court for the District of Maryland, ORDERED:

1. The Emergency Motion is hereby granted and the Stipulation and Consent Order are approved;

2. Proceeds from closing the sale of the lot described in the contract of sale in the amount of $15,000 will be placed in escrow: (i) subject to the respective liens and rights of the Parties to the same nature, extent and priority as existed at the time of closing; and (ii) the transfer of the proceeds into escrow will not diminish or void the Parties' respective lien rights. The funds will be deposited in escrow in the IOLTA Trust Account of Shapiro, Sher, Guinot and Sandler. As to the proceeds from the sale of the lot, the funds held in escrow will only be released upon either (i) the mutual agreement of Wachovia and Sandler; or (ii) an order of this Court providing for the release of the funds.

AGREED, STIPULATED, AND CONSENTED TO:

I HEREBY CERTIFY that the terms of the copy of the consent order submitted to the Court are identical to those set forth in the original consent order; and the signatures represented by the /s/ on this copy reference the signatures of consenting parties on the original consent order.

SO ORDERED

CARUSO HOMES Consolidated Limited Matrix ^{th th th st th}

Mark A. Neal, Esquire David I. Swan, Esq. Patrick K. Cameron, Esq. Office of the U.S. Trustee McGuire Woods LLP Ober Kaler 101 W. Lombard St., Ste. 2625 1750 Tysons Blvd., Ste. 1800 120 E. Baltimore St., Ste. 800 Baltimore, MD 21201 McLean, VA 22102 Baltimore, MD 21202 David M. Ostrove, Esq. Richard Kremen, Esq. Jennifer R. Lee, Esq. Louis J. Ebert, Esq. Jodie E. Buchman, Esq. Friedlander Misler Thomas Libowitz, P.A. DLA Piper US LLP 1101 17 St., NW, Ste. 700 100 Light St., Ste. 1100 6225 Smith Ave. Washington, DC 20036 Baltimore, MD 21202 Baltimore, MD 21209 James M. Smith, Esq. Maryland Bank Trust Bradford Bank Gebhardt Smith Attn: Tom Watts Attn: Ellen Boyer One South St., Ste. 2200 3220 Old Washington Rd. 6900 York Rd. Baltimore, MD 21202 Waldorf, MD 20602 Baltimore, MD 21212 RBC Bank Thomas J. Van Lierde Irving E. Walker, Esq. James Brennan, Esq. Cole Schotz Meisel Forman et al Reed Smith LLP 11911 Freedom Dr., Ste. 730 111 S. Calvert St., Ste. 2350 3110 Fairview Park Dr., Ste. 1400 One Fountain Square Baltimore, MD 21202 Falls Church, VA 22042 Reston, VA 20190 Denison Equities Attn: Duane Denison Wilshire Funding LLC Somerset Funding Attn: Caleb Gould Attn: Joe Fleury 8911 Oxon Hill Rd. 14504 Greenview Dr., Ste. 210 307 International Circle, 6 Fl. Ft. Washington, MD 20744 Laurel, MD 20708 Hunt Valley, MD 21030 Meridian Construction Capital Attn: Lori Canova David H. Posey Viking Residential (MB) 1211 Central Park Blvd. 6230 Kerrick Dr. 7007 Heatherhill Rd. Fredericksburg, VA 22401 LaPlata, MD 20646 Bethesda, MD 20814 Glen Allen, VA 23059 Michael D. Nord, Esq. Robert E. Greenberg, Esq. Michael C. Bolesta, Esq. S L Contractors (DR) Friedlander Misler 1064 Alley Mill Rd. 1101 17 St., N.W., Ste. 700 Gebhardt and Smith, LLP Smyna, DE 19977 Washington, DC 20036 One South Street, Ste. 2200 Baltimore, MD 21202 Nikolaus F. Schandlbauer, Esq. Alan M. Grochal, Esq. Robert M. Boote, Esq. Walter R. Kirkman, Esq. Catherine K. Hopkin, Esq. Ballard Spahr Andrews Ingersoll Ober, Kaler, Grimes Shriver Tydings Rosenberg LLP 1401 H Street, N.W., Ste. 500 100 East Pratt Street, 26th Fl. 1735 Market St., 51 Fl. Washington, DC 20005 Baltimore, MD 21202 Philadelphia, PA 19103 George R. Pitts, Esq. R. Manny Montero, Esq. Michael L. Snyder, Esq. Jeffrey Rhodes, Esq. Montero Law Group, LLC Coady Farley Dickstein Shapiro LLP 6801 Kenilworth Ave., Suite 201 400 Allegheny Avenue 1825 Eye Street, N.W. Washington, D.C. 20006-5403 Riverdale, MD 20737 Towson, MD 21204 The Bradford Bank Gary R. Greenblatt, Esquire c/o Michael G. Rinn, Esq. Steven H. Greenfeld, Esq. Law Office of Michael G. Rinn Cohen Baldinger Greenfeld, LLC Constance M. Hare, Esquire Mehlman, Greenblatt Hare, LLC 111 Warren Road, Suite 4 7910 Woodmont Avenue, Suite 760 723 S. Charles Street, Suite LL3 Cockeysville, MD 21030 Bethesda, MD 20814 Baltimore, MD 21230 Lawrence D. Coppel, Esqurie David G. Sommer, Esquire Bruce E. Kauffman, Esquire Bradley J. Swallow, Esquire Kauffman and Forman, P.A. Gordon, Feinblatt, Rothman, Thomas C. Dame, Esquire 406 W. Pennsylvania Avenue Hoffberger Hollander, LLC Gallagher Evelius Jones LLP Towson, MD 21204 233 East Redwood Street 218 N. Charles Street, Suite 400 Baltimore, MD 21202 Baltimore, MD 21201 Stephen J. Annino, Esquire Norman B. King, Esquire James R. Sheeran, Esquire Kasimer Annino, P.C. King King Attorneys at Law, P.C. Matthew M. Barnes, Esquire The Peninsula at Long Neck, LLC 7653 Leesburg Pike 8905 Fairview Road, Suite 501 6520 Indian River Road Falls Church, VA 22043 Silver Spring, MD 20910 Virginia Beach, VA 23464 Patrick J. Kearney, Esq. Sarah Elizabeth Longson, Esquire Seizer Gurvitch Rabin Obecny Kollman Saucier, P.A. Daniel C. Fleming, Esquire Wong Fleming, P.C. 4416 East West Highway, 4 Fl. The Business Law Building 1823 York Road 821 Alexander Road, Suite 150 Bethesda, MD 20814 Timonium, MD 21093 Princeton, NJ 08543 Jay V. Strong, Jr., Esquire 17 W. Pennsylvania Avenue Caruso.ltd matrix.doe Suite 402 Updated 10/15/08 Baltimore, MD 21204-5020