Opinion
Case Nos. 00-34533-DOT to 00-34538-DOT, (Jointly Admin.)
October 3, 2003
C. Thomas Ebel, Esquire, William A. Gray, Esquire, Sands Anderson Marks Miller, P.C. Richmond, Virginia for the Plaintiffs, John Walker, Deceased and Mary A. Walker and Administratrix of the Estate of John Walker
Stanley J. Samorajczyk, Esquire, Akin, Gump, Strauss, Hauer Feld, LLP, Washington, D.C. for Official Committee of Unsecured Creditors
Troy Savenko, Esquire, LeCLAIR RYAN, A Professional Corporation, Richmond, Virginia for the Debtors
CONSENT ORDER
COME NOW, the Plaintiffs, John Walker, Deceased and Mary A. Walker, Individually and as Administratrix of the estate of John Walker (the "Plaintiffs") and the Debtors, Heilig-Meyers Company, et. al. (the "Debtors") (collectively, the "Parties"), both by counsel, to represent to the Court that they have reached an agreement, whereby the Plaintiffs will be granted: 1) partial relief from the automatic stay of 11 U.S.C. § 362(a); and, 2) partial relief from any injunction related to or arising from this Court's Order approving the Debtors' alternative dispute resolution procedures (the "ADR Procedures"). The relief granted will be for the limited and sole purpose of permitting the Plaintiffs to file a Motion for Judgment in the City of Petersburg Circuit Court (the "state action") naming the Debtors as a defendant, on or before Monday, October 6, 2003, in advance of the expiration of the statute of limitations the next day. Notwithstanding the relief granted, the Plaintiffs will participate, as appropriate, in the Debtors' applicable ADR Procedures.
Further, the Plaintiffs represent to the Court that the state action will name the Debtors as one (1) of two (2) defendants. The other defendant will be Maytag Corporation ("Maytag") and the Motion for Judgment will assert claims for, without limitation, product liability, negligence, and breach of warranty, for damages sustained to the Plaintiffs' residence caused by a fire in October 1998, started by a smooth top range manufactured by Maytag, and allegedly sold by Debtors.
The Plaintiffs represent to the Court that the Plaintiffs seek only to recover against the Debtors, if at all, to the extent and/or limits of any applicable insurance coverage of the Debtors. The Parties further represent to the Court that neither party has waived any of their rights as part of this agreement except as may be expressly stated herein. Finally, it is represented to the Court that the Parties consent to entry of this proposed order granting the relief requested herein without the necessity of a hearing before the Court and therefore, waive their rights to such hearing.
Accordingly, upon mature consideration of the relief requested by the Parties and the representations recited herein, and it being right and proper to do so, it is hereby
ADJUDGED, ORDERED, and DECREED as follows:
1. That no further notice or hearing be deemed necessary in this proceeding;
2. That the Plaintiffs are GRANTED partial relief from the automatic stay of 11 U.S.C. § 362(a) for the limited purpose of filing a state action naming the Debtors as a defendant, as provided herein, and participating in the ADR Procedures, if appropriate;
3. That the Plaintiffs are GRANTED relief from any injunction related to or arising from this Court's Order approving the ADR Procedures also for the limited purpose of filing a state action in the City of Petersburg Circuit Court on or before Monday, October 6, 2003;
4. The Plaintiffs may not, without further order of the Court, execute, enforce, or collect any settlement or judgment from or against the Debtors' assets or properties; and
5. That the Plaintiffs shall participate in the process established by the ADR Procedures.
Upon entry, the Clerk is requested to send copies of this Order to counsel, as listed below, as well as to the parties listed on the Service List.