Opinion
No. 02-25434-TTG.
July 6, 2005
Christian C. Weinmann, Karr Tuttle Campbell Seattle, WA, Attorneys for Diana K. Carey, Trustee.
ORDER APPROVING SETTLEMENT OF PREFERENCE ACTIONS AGAINST CERTAIN SPEAKERS AND RELEASING INTEREST IN WAGE CLAIMS
THIS MATTER came on for hearing on the Motion For Approval Of Settlement Of Preference Actions (the " Motion ") of Diana K. Carey, Chapter 11 trustee (the " Trustee ") for the bankruptcy estate of the consolidated cases of Wade Cook Financial Corporation and its subsidiaries and affiliates, Stock Market Institute of Learning, Inc., Information Quest, Inc., and Lighthouse Books, Inc. f/k/a/ Lighthouse Publishing Group, Inc., (collectively, the " Debtors "), pursuant to Bankruptcy Rule 9019. Having considered the records and files herein, including the Motion, the settlement agreement documents memorializing the settlements, which are attached hereto (the " Settlements "), and the statements of the Trustee's counsel, and finding that notice of the Motion was adequate under the circumstances, that no parties in interest appeared in opposition to the Motion, and that the Settlements with the parties listed below are in the best interest of the estate,
Defendant Cornerstone Interiors of Texas, Inc. (Eric and Stephanie Behnke) Roy Thureson TSF Productions, Inc. (Richard and Cheryl Jenness) Joe Esser
the Court hereby
ORDERS that the Settlements with the parties listed above are hereby approved in all respects and binding upon all parties in interest thereto.
Cornerstone Interiors of Texas, Inc. c/o Stephanie Behnke 8212 Zircon Drive SW Lakewood, W A 98498
RE: Carey v. Cornerstone Interiors of Texas, Inc. (Adv. Pro. No. 04-01591-TTG) FOR SETTLEMENT PURPOSES ONLY
Dear Ms. Behnke:
As you know, this firm represents Diana K. Carey, Trustee (the "Trustee") for the consolidated cases of Wade Cook Financial Corporation and its subsidiaries and affiliates, Stock Market Institute of Learning, Inc., Information Quest, Inc., and Lighthouse Books, Inc. f/k/a/ Lighthouse Publishing Group, Inc., (collectively, the "Debtors"), in her preference lawsuit against Cornerstone Interiors of Texas, Inc. ("Cornerstone"). The Trustee has asserted a claim of $12,500 (the "Preference Claim") against Cornerstone in the adversary proceeding captioned above.
Our records indicate that Cornerstone is entitled to payment from the bankruptcy estate of $4,602.20 for pre-petition wages (the "Wage Claim"). You have provided evidence that Cornerstone is out of business and that a judgment taken against it, in any amount, would render it insolvent.
In light of the above circumstances, the Trustee is wiling, and hereby offers, to settle this matter by releasing the Trustee's interest in the Preference Claim in exchange for Cornerstone's release of its interest in the Wage Claim and any other claim it now has or might have in the future against the Trustee, the Debtors, or the bankruptcy estate. For all practical purposes, this settlement would effectively end Cornerstone's involvement with this bankruptcy.
The Trustee proposes the following additional terms:
1. This settlement does not constitute an admission of any kind on the part of either party as to the merits of Cornerstone's defenses, but is merely a settlement by way of compromise of the Trustee's allegations, Cornerstone's defenses, and any claims Cornerstone may have against the Trustee, the Debtors, or the bankruptcy estate.
2. This settlement is subject to approval of the United States Bankruptcy Court in Seattle, Washington. The Trustee agrees to promptly notify creditors of the settlement and request court approval.
3. Any statements made in this letter shall be binding upon the parties only upon court approval of the settlement contemplated herein.
4. This settlement letter may be signed in counterparts and by facsimile.
5. The United States Bankruptcy Court at Seattle shall have jurisdiction over any dispute arising from this settlement, and the settlement agreement shall be governed by Washington law, except to the extent that bankruptcy law applies. If either party is required to consult an attorney or bring an action arising out of this settlement, the prevailing party is entitled to recover its reasonable attorney's fees and costs from the non-prevailing party, including any upon appeal.
If the above terms are acceptable to you, please indicate your approval by signing below, and fax or mail me a signed copy at the above address.
Roy Thureson 1902 Hoquiam Place NE Renton, WA 98059-4243
RE: Carey v. Roy Thureson (Adv. Pro. No. 04-01600-TTG) FOR SETTLEMENT PURPOSES ONLY
Dear Mr. Thureson:
As you know, this firm represents Diana K. Carey, Trustee (the "Trustee") for the consolidated cases of Wade Cook Financial Corporation and its subsidiaries and affiliates, Stock Market Institute of Learning, Inc., Information Quest, Inc., and Lighthouse Books, Inc. f/k/a/ Lighthouse Publishing Group, Inc., (collectively, the "Debtors"), in her preference lawsuit against you. The Trustee has asserted a claim of $22,451.62 (the "Preference Claim") against you in the adversary proceeding captioned above.
Our records indicate that you are entitled to payment from the bankruptcy estate of $4,650 for pre-petition wages (the "Wage Claim"). You have provided evidence that you are out of business and that a judgment taken against you, in any amount, would render you insolvent.
In light of the above circumstances, the Trustee is wiling, and hereby offers, to settle this matter by releasing the Trustee's interest in the Preference Claim in exchange for your release of your interest in the Wage Claim and any other claim you now have or might have in the future against the Trustee, the Debtors, or the bankruptcy estate. For all practical purposes, this settlement would effectively end your involvement with this bankruptcy.
The Trustee proposes the following additional terms:
1. This settlement does not constitute an adission of any kind on the part of either party as to the merits of your defenses, but is merely a settlement by way of compromise of the Trustee's allegations, your defenses, and any claims you may have against the Trustee, the Debtors, or the bankruptcy estate.
2. This settlement is subject to approval of the United States Bankruptcy Court in Seattle, Washington. The Trustee agrees to promptly notify creditors of the settlement and request court approval.
3. Any statements made in this letter shall be binding upon the pares only upon court approval of the settlement contemplated herein.
4. This settlement letter may be signed in counterparts and by facsimile.
5. The United States Bankruptcy Court at Seattle shall have jurisdiction over any dispute arising from this settlement, and the settlement agreement shall be governed by Washington law, except to the extent that bankruptcy law applies. If either par is required to consult an attorney or bring an action arising out of this settlement, the prevailing par is entitled to recover its reasonable attorney's fees and cost from the non-prevailing par, including any upon appeal.
If the above terms are acceptable to you, please indicate your approval by signing below, and fax or mail me a signed copy at the above address.
TSF Productions, Inc. Richard and Cheryl Jenness RR1 Box 281A Solberry, IN 47459
RE: Carey v. TSF Productions; Inc. (Adv. Pro. No. 04-01597-TTG) FOR SETTLEMENT PURPOSES ONLY
Dear Mr. and Ms. Jenness:
As you know, this firm represents Diana K. Carey, Trustee (the "Trustee") for the consolidated cases of Wade Cook Financial Corporation and its subsidiaries and affiliates, Stock Market Institute of Learning, Inc." Information Quest, Inc., and Lighthouse Books, Inc. f/k/a/ Lighthouse Publishing Group, Inc., (collectively, the "Debtors"), in her preference lawsuit against TSF Productions, Inc. ("TSF"). The Trustee has asserted a claim of $13,000 (the "Preference Claim") against TSF in the adversary proceeding captioned above.
Our records indicate that TSF is entitled to payment from the bankruptcy estate of $4,650 for pre-petition wages (the "Wage Claim"). You have provided evidence that TSF is out of business and that a judgment taken against it, in any amount, would render it insolvent.
In light of the above circumstances, the Trustee is willing, and hereby offers, to settle this matter by releasing the Trustee's interest in the Preference Claim in exchange for TSF's release of its interest in the Wage Claim and any other claim it now has or might have in the future against the Trustee, the Debtors, or the bankruptcy estate. For all practical purposes, this settlement would effectively end TSF's involvement with this bankruptcy.
The Trustee proposes the following additional terms:
1. This settlement does not constitute an admission of any kind on the part of either par as to the merits of TSF's defenses; but is merely a settlement by way of compromise of the Trustee's allegations, TSF's defenses, and any claims TSF may have against the Trustee, the Debtors, or the bankruptcy estate,
2. This settlement is subject to approval of the United States Bankruptcy Court in Seattle, Washington. The Trustee agrees to promptly notify creditors of the settlement and request court approval.
3. Any statements made in this letter shall be binding upon the parties only upon court approval of the settlement contemplated herein.
4. This settlement letter may be signed in counterparts and by facsimile.
5. The United States Bankruptcy Court at Seattle shall have jurisdiction over any dispute arising from this settlement, and the settlement agreement shall be governed by Washington law; except to the extent that bankruptcy law applies. If either par is required to consult an attorney or bring an action arising out of this settlement, the prevailing part is entitled to recover its reasonable attorney's fees and costs from the non-prevailing party including any upon appeal.
If the above terms are acceptable to you, please indicate your approval by signing below, and fax or mail me a signed copy at the above address.
Joe Esser 28325 Woodridge Lane #8 West Harrison, IN 47060
RE: In re Wade Cook Financial Corp. et al., Bankruptcy Case No. 02-25434, Trustee's Preference Claim Against Joe Esser FOR SETTLEMENT PURPOSES ONLY
Dear Mr. Esser:
As you know, this firm represents Diana K. Carey, Trustee (the "Trustee") for the consolidated cases of Wade Cook Financial Corporation and its subsidiaries and affiliates, Stock Market Institute of Learning, Inc., Information Quest, Inc., and Lighthouse Books, Inc. f/k/a/ Lighthouse Publishing Group, Inc., (collectively, the "Debtors"), in her pursuit of collection of payments made to creditors with ninety (90) days of the bankruptcy filing ("Preference Period"). The Trustee has analyzed the Debtors' records and concluded that you received preferential payment(s) from the Debtors during the Preference Period in the total amount of $16,000.00.
Our records indicate that you are entitled to payment from the bankruptcy estate of $4,650 for pre-petition wages (the "Wage Claim"). You have provided evidence that you are out of business and that a judgment taken against you, in any amount, would render you insolvent.
In light of the above circumstances, the Trustee is willing, and hereby offers, to settle this matter by releasing the Trustee's interest in her claim for ret of the $16,000 in preference payments, in exchange for your release of your interest in the Wage Claim and any other claim you now have or might have in the future against the Trustee, the Debtors, or the bankruptcy estate. For all practical purposes, this settlement would effectively end your involvement with this bankruptcy.
The Trustee proposes the following additional terms:
1. This settlement does not constitute an admission of any kind on the part of either party as to the merits of your defenses, but is merely a settlement by way of compromise of the Trustee's allegations, your defenses, and any claims you may have against the Trustee, the Debtors, or the bankruptcy estate.
2. This settlement is subject to approval of the United States Bankruptcy Court in Seattle, Washington. The Trustee agrees to promptly notify creditors of the settlement and request court approval.
3. Any statements made in this letter shall be binding upon the parties only upon court approval of the settlement contemplated herein.
4. This settlement letter may be signed in counterparts and by facsimile.
5. The United States Bankruptcy Court at Seattle shall have jurisdiction over any dispute arising from this settlement, and the settlement agreement shall be governed by Washington law, except to the extent that bankruptcy law applies. If either party is required to consult an attorney or bring an action arising out of this settlement, the prevailing party is entitled to recover its reasonable attorney's fees and costs from the non-prevailing party including any upon appeal.
If the above terms are acceptable to you, please indicate your approval by signing below, and fax or mail me a signed copy at the above address.