Opinion
No. 130108.
January 31, 2006.
Remand Order in Case Pending on Application for Leave to Appeal Entered.
SC: 130108, COA: 266779.
Pursuant to MCR 7.302(G)(1), in lieu of granting leave to appeal, we remand this case to the Wayne Circuit Court for further proceedings. At a November 18, 2005, hearing, Judge Michael F. Sapala stated, "I'm satisfied that the conflict of interest does not exist, this other receiver is to be dissolved." We direct the circuit court to reconsider whether Melvin Butch Hollowell had a conflict of interest and to make specific findings addressing the following issues:
(1) whether receiver Hollowell had or has any professional relationships with La-Van Hawkins, Mr. Hawkins's ex-wife, Wendy Hawkins, any of the individuals comprising the group or association that purchased the Sweet Georgia Brown restaurant on November 15, 2005, or the Sweet Georgia Brown restaurant, and, if so, the parameters and duration of that professional relationship;
(2) whether receiver Hollowell had or has any personal relationships with LaVan Hawkins, Mr. Hawkins's ex-wife, Wendy Hawkins, or any of the individuals comprising the group or association that purchased the Sweet Georgia Brown restaurant on November 15, 2005, and, if so, the parameters and duration of that personal relationship;
(3) whether, if such existing or former personal or professional relationships are found, there would naturally be a tendency on Hollowell's part to take actions, as a receiver, in other than a completely disinterested manner, see Sellars v. Lamb, 303 Mich 604, 610-611 (1942), and, if so, whether Hollowell should be disqualified from serving as receiver;
(4) whether Hollowell disclosed information regarding bids and the sale of the restaurant he negotiated to his co-receiver, Bryan D. Marcus, during the period that Marcus served as co-receiver, and, if not, whether such nondisclosure was justified;
(5) whether Hollowell disclosed information regarding bids and the sale of the restaurant he negotiated to creditors of La-Van Hawkins to the extent such disclosure was appropriate;
(6) whether the sale Hollowell negotiated was the result of an arms-length and even-handed competitive bidding process;
(7) how many bids were submitted and how many bidders participated in the bidding process; and
(8) whether the $1.5 million sale price Hallowell negotiated fairly represents the value of the restaurant.
The Wayne Circuit Court may conduct additional proceedings or evidentiary hearings, if necessary, and is directed to submit its findings of fact and conclusions of law to this Court within 35 days of the date of this order. The stay imposed by this Court's order of December 21, 2005, is modified to allow continued tax payments to the State Treasurer's office during the pendency of the stay. The application for leave to appeal the December 2, 2005, order of the Court of Appeals remains under consideration. We retain jurisdiction.