Opinion
BANKRUPTCY CASE NO: 04-10262-DK, ADVERSARY NO.: 07-00643-DWK.
March 14, 2008
Norman Joseph Lee, III, Baltimore, Maryland, Defendant.
Hugh M. Bernstein, Esquire (Bar No 23489), Office of the United States Trustee, Baltimore, Maryland, Attorney for the United States Trustee.
STIPULATION AND CONSENT ORDER APPROVING SETTLEMENT AND ISSUING INJUNCTION
A. Definitions
For the purpose of this Order, the following definitions apply:
1. Adversary Proceeding. The term "Adversary Proceeding" shall mean the adversary proceeding captioned W. Clarkson McDow, Jr. v. Norman Joseph Lee, III, et al., Adversary Proceeding No. 07-00643, proceeding in, or having proceeded in, the United States Bankruptcy Court for the District of Maryland.
2. Debtor. The term "Debtor" shall mean a person, entity or municipality concerning which a case under Title 11 of the United States Code has been commenced and remains pending.
3. Complaint. The term "Complaint" shall mean the Amended Complaint for Fines, Disgorgement of Compensation and Injunction filed in the United States Bankruptcy Court for the District of Maryland by the United States Trustee for Region Four in Adversary Proceeding 07-00643.
4. Injunction. The term "Injunction" shall mean the injunction imposed by this Order, the terms of which are set forth in Section D below.
5. Settlement Agreement. The term "Settlement Agreement" refers to the settlement agreement between the United States Trustee and the Norman Joseph Lee, III dated February 25, 2008, and attached as Exhibit 1 to the Motion to Approve Settlement and For Issuance of Consent Injunction filed in the Adversary Proceeding.
B. Recitals of Stipulated Facts
1. W. Clarkson McDow, Jr. is the duly appointed United States Trustee for Region Four and the District of Maryland, which is part of Region Four (the "United States Trustee").
2. Norman Joseph Lee, III ("Mr. Lee") is an individual residing and conducting business in the State of Maryland.
3. On or about August 17, 2007, the United States Trustee initiated the Adversary Proceeding against Mr. Lee and others by filing the Complaint and alleging violations of the United States Bankruptcy Code and other laws by Mr. Lee and others in connection with the filing of motions and other documents in the United States Bankruptcy Court for the District of Maryland.
4. Mr. Lee answered the Complaint denying some of the United States Trustee's allegations of fact and interposing defenses to the legal claims asserted by the United States Trustee.
5. Mr. Lee and counsel for United States Trustee conferred regarding the Adversary Proceeding and reached an agreement on behalf of the United States Trustee and Mr. Lee resolving the claims asserted against Mr. Lee by the United States Trustee in the Adversary Proceeding. The terms of that agreement are set forth in the Settlement Agreement and in the Injunction.
6. It is agreed and understood that the Settlement Agreement, the Injunction and the consent to this Order, represent a compromise of claims and that nothing in the Settlement Agreement, the Injunction or Mr. Lee's consent to this Order constitutes or will be construed as an admission of liability or of any wrongdoing or violation of law by Mr. Lee. To the contrary, Mr. Lee expressly denies any wrongdoing or liability in this matter.
C. Approval of Settlement and Settlement Agreement
The Court has reviewed the pleadings, motions and other documents filed in the Adversary Proceeding and finds the terms of the Settlement Agreement to be reasonable, appropriate and warranted. Therefore, upon consideration of the recitals of fact set forth above and stipulated to by the parties, it is hereby,
ORDERED, that Settlement Agreement and the settlement of the Adversary Proceeding on the terms set forth in the Settlement Agreement are hereby approved.
D. Terms and Conditions of Injunction
The Court has reviewed the pleadings, motions and other documents filed in the Adversary Proceeding and finds the terms of the Injunction to be reasonable and the issuance of the Injunction to be appropriate and warranted. Therefore, upon consideration of the recitals of fact set forth above and stipulated to by the parties, it is hereby,
ORDERED, that the Injunction shall be granted and that Mr. Lee shall be enjoined as follows:
1. Except as provided in paragraph D.4 below, Mr. Lee shall not draft or prepare any motion, pleading or other document to be submitted to any court on a Debtor's behalf, or under a Debtor's signature, unless Mr. Lee:
a. signs the motion, pleading or document;
b prints her name, address and social security number on the motion, pleading or document prior to filing, and
c. otherwise fully complies with all requirements of § 110 of the United States Bankruptcy Code, or any subsequent and applicable amendment thereto.
2. Except as provided in paragraph D.4 below, Mr. Lee shall not assist any person or entity (including but not limited to Teri Dougherty, and/or Financial Workout Solutions, LLC) in drafting or preparing any motion, pleading or other document to be submitted to any court on a Debtor's behalf, or under a Debtor's signature, unless the person responsible for drafting or preparing the motion, pleading or document, or an officer principal, partner of other responsible person of any entity responsible for drafting or preparing the motion, pleading or document:
a. signs the motion, pleading or document;
b. prints his or her name, address and social security number on the motion, pleading or document prior to filing, and
c. otherwise fully complies with all requirements of § 110 of the United States Bankruptcy Code, or any subsequent and applicable amendment thereto.
3. For purposes of subparagraph (2) above, the term "assist" includes, in addition to any other action that would constitute assistance under the ordinary usage of the term: (i) the gathering of information for the purpose of drafting or preparing any motion, pleading or document to be filed in any court, (ii) the provision to a Debtor of a completed motion, pleading or document for the purpose filing the motion, pleading or document in any court, and/or (iii) the provision to any person of a form motion, pleading of document, obtained via the internet, form book, data bank, or other similar source.
4. The restrictions set forth in paragraphs D.1 and D.2 above shall not apply in any jurisdiction in which Mr. Lee is permitted to practice law. In an such jurisdiction, compliance by Mr. Lee with all rules, laws and regulations governing the signing of pleadings, motions and other documents to be filed by the courts by attorneys permitted to practice law shall constitute compliance with the terms of this Injunction.
5. In addition to the restrictions set forth in Paragraphs D.1 and D.2 above, for any Debtor who is represented by counsel other than Mr. Lee with respect to his or her bankruptcy case, Mr. Lee shall not draft or prepare any motion, pleading or other document to be submitted to any court on that Debtor's behalf unless a copy of the motion, pleading or other document has been provided to the Debtor's attorney in advance of submission.
6. Nothing in this Injunction shall be deemed or interpreted to authorize Mr. Lee to take any act or to draft or prepare any motion, pleading or other document for submission to a court. The parties to this Injunction recognize and understand that actions taken by Mr. Lee involving the subject matter of this Injunction may fully comply with the terms of the Injunction yet still constitute a violation of other applicable laws, including but not limited to laws governing the unauthorized practice of law. COMPLIANCE WITH THIS INJUNCTION SHALL NOT CONSTITUTE A DEFENSE TO ANY ALLEGED VIOLATION OF LAW.
7. Nothing in this Injunction shall be deemed or interpreted to prohibit, limit or otherwise abridge Mr. Lee's rights to proceed pro se in any legal proceeding. The restrictions of Paragraphs D.1 and D.2 above, shall not apply to any motion, pleading or document that Mr. Lee prepares or files in any court on her own behalf.
8. In addition to any sanction or remedy generally applicable to the violation of an injunction, if Mr. Lee is determined by a court of appropriate jurisdiction to have violated any term of this Injunction, then:
a. Mr. Lee consents to entry of a judgment imposing a fine in the amount of $5,000. The fine provided in this Paragraph:
(i) shall be payable to the United States Trustee;
(ii) shall be in addition to any other fines, damages, sanctions or remedies otherwise imposed or for which Mr. Lee is found liable; and
(iii) shall not reduce any damages, fines or other amounts such Mr. Lee is ordered to pay or for which Mr. Lee is found liable; and
b. The United States Trustee shall be entitled to re-open or otherwise reassert the Complaint and/or the allegations, claims and causes of action asserted in the Complaint. In the event the United States Trustee re-opens or otherwise reasserts the Complaint and/or the allegations, claims and causes of action asserted in the Complaint in accordance with this Paragraph, then the United States Trustee shall be entitled to assert, provide evidence of, and seek recovery for, any alleged violations of § 110 of the United States Bankruptcy Code which occurred prior to the date of this Injunction without regard to any applicable statute of limitations, laches or other timeliness defense.
SEEN, REVIEWED AND CONSENTED TO:
SO ORDERED Approved.