Opinion
Case No. 09-13170-JS.
April 7, 2011
Joseph J. Bellinger, Esquire #08394, Offit Kurman, P.A., Fulton, Maryland, Attorneys for Chapter 7 Trustee.
James Vidmar, Esquire, Logan, Yumkas, Vidmar Sweeney, LLC, Annapolis. Maryland.
Gary S. Poretsky, Esq., Sirody, Freiman Feldman P.C., Baltimore, Maryland.
Edmund A. Goldberg, Esquire, Office of U. S. Trustee, Baltimore, Maryland.
Michael G. Rinn, the Chapter 7 trustee, Christian S. Knudsen, Jr., the Office of the U. S. Trustee, and Sirody, Frieman Feldman (the "Parties"), by their respective undersigned attorneys, stipulate to the entry of this Order resolving two contested matters (a) the Motion of the U. S. Trustee to Further Extend Deadline for Objecting to Discharge and responses thereto, and (b) the Motion of Chapter 7 Trustee for Rule 2004 Examination and for Production of Documents and responses thereto. The Parties stipulate and agree that:
1. On February 26, 2009 (the "Petition Date"), Christian S. Knudsen, Jr. (the "Debtor") filed a voluntary petition under Chapter 11 of the Bankruptcy Code. Sirody, Frieman Feldman (the "Law Firm") was the Debtor's bankruptcy counsel from the Petition Date until March 3, 2010, whereupon a Notice of Substitution of Counsel was filed withdrawing the Law Firm's appearance as counsel to the Debtor and substituting undersigned counsel to the Debtor. See Dckt. No. 166.
2. Upon a Motion by the Office of the U.S. Trustee, on May 20, 2009, the Court entered an Order Converting Case From a Case Under Chapter 11 to a Case Under Chapter 7 of the Bankruptcy Code. See Dckt. No. 63.
3. On or about May 20, 2009, Michael G. Rinn (the "Trustee") was appointed Chapter 7 Trustee of the Debtor's bankruptcy estate (the "Bankruptcy Estate"). See Dckt. No. 65.
4. Upon a Motion of the Trustee, the Court entered an Order Compelling and Directing Debtor to Provide Trustee with Information and Records (the "Order to Compel"). See Dckt. No. 118.
4. The Trustee has moved to extend the deadline for filing an objection to the Debtor's discharge on several occasions. On March 9, 2011, the Office of the U.S. Trustee filed a Motion to Extend Time to Object to Discharge up to and including July 15, 2011 (the "Motion to Extend"). See Dckt. No. 222.
5. The Debtor filed a Limited Opposition to the Motion to Extend and asserts, "[t]he Debtor has cooperated with the Chapter 7 Trustee in all respects, including sitting for extended examinations, the last being August 10, 2010. The Debtor has fully cooperated with the Chapter 7 Trustee and produced all requested documents." See Opposition, Dckt. No. 230, at ¶ 3. The Debtor proposes that the extension of the deadline to object to discharge expire on April 28, 2011. The Debtor filed Amended Schedules A, B C on March 9, 2011. See Dckt. No. 221.
6. The Trustee made demand upon the Law Firm to turn over its entire file to the Trustee, asserting that any privilege of the Debtor had been waived. The Law Firm refused the Trustee's demand for turnover of its file absent an Order of the Court or the prior written consent of the Debtor.
7. The Trustee has filed a a Motion for a Bankruptcy Rule 2004 Examination of the Law Firm and Request for Production of Documents by the Law Firm, as well as a Joinder to the Motion to Extend. See Dckt. Nos. 228 229.
8. The Debtor has filed an Opposition to the Trustee's Motion for Bankruptcy Rule 2004 Examination and Production of Documents on the grounds that the testimony and documents may divulge information subject to the attorney-client privilege. See Dckt. No. 230.
9. The Court has scheduled hearings on the Motion to Extend and the Motion for Bankruptcy Rule 2004 Examination on April 11, 2011. See Dckt. Nos. 234 and 236.
10. The Parties have engaged in negotiations regarding the disputes that have arisen as set forth herein, and have agreed, subject to the approval of the Court, to the entry of this Stipulation and Consent Order in compromise and resolution of the contested matters described herein.
NOW, THEREFORE, UPON CONSIDERATION OF THE MATTERS SET FORTH ABOVE AND THE PAPERS FILED IN THE CASE IN REGARD TO THE CONTESTED MATTERS DESCRIBED HEREIN, AND IT APPEARING THAT GOOD CAUSE EXISTS FOR APPROVING THIS STIPULATION AND CONSENT ORDER, IT IS, BY THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF MARYLAND, HEREBY.
ORDERED, that the Law Firm shall produce its entire file in connection with its representation of the Debtor in this bankruptcy proceeding, including, inter alia, all documents that are responsive to the Order to Compel and the Trustee's Request for Documents attached as Appendix A to the Motion for Rule 2004 Examination to the Debtor's undersigned counsel on or before five (5) calendar days after the entry of this Order and shall file a Notice of Production to certify its compliance with this provision of this Order, setting forth the date such documents were produced to Debtor's undersigned counsel; and it is further
ORDERED, that the Debtor shall produce all documents that are responsive to the Order to Compel and the Trustee's Request for Documents attached as Appendix A to the Motion for Rule 2004 Examination to the Debtor's undersigned counsel on or before five (5) calendar days after the entry of this Order and the Debtor's undersigned counsel shall file a Notice of Production signed by the Debtor certifying his compliance with this provision of this Order, setting forth the date such documents were produced to Debtor's undersigned counsel; and it is further
ORDERED, that undersigned counsel to the Debtor shall provide copies of all documents produced by the Law Firm and the Debtor to the Trustee's undersigned counsel within ten (10) calendar days after the entry of this Order and a privilege log stating with specificity the document(s) withheld from the Trustee and shall file a Notice of Production, certifying its compliance with this provision of this Order, setting forth the date that the documents and privilege log were produced to the Trustee's attorneys; and it is further
ORDERED, that the Trustee reserves the right to assert that the attorney-client privilege has been waived, does not apply, or that the documents should be produced for any other reason that the Trustee may assert; and it is further
ORDERED, that the Trustee's attorneys shall be entitled to take the sworn testimony of all persons designated by the Law Firm as persons with knowledge of the matters set forth in the Motion for Rule 2004 Examination, which shall be commenced on a date within ten (10) calendar days from the date of undersigned counsel to the Debtor's Notice of Production is filed; and it is further
ORDERED, that the Debtor shall appear for a final meeting of creditors at the Office of the United States Trustee on a date within fifteen (15) calendar days from the date of undersigned counsel to the Debtor's Notice of Production is filed; and it is further
ORDERED, that any disputes with respect to the assertion of privilege by the Debtor or the Law Firm with respect to documents or testimony of the designees of the Law Firm will be brought to the Court by the appropriate motions to compel; and it is further
ORDERED, that the deadline for objecting to the Debtor's discharge shall be the later of July 1, 2011 or ten (10) days after the Court rules on any motions to compel filed by the Trustee with respect to the documents and testimony of the Law Firm's designees.
Dated: April 4, 2011