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 UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA 

Alexandria Division 

In the Matter of: : 

 : Chapter 7 

RICHARD MURRAY, : 

 : Case No. 16-10548-BFK 

 Debtor. : 

____________________________________: 

MOTION TO APPROVE COMPROMISE OR SETTLEMENT PURSUANT 

TO RULE 9019 OF THE FED. RULES OF BANKR. PROCEDURE 

COMES NOW, Janet M. Meiburger, Trustee (“Trustee”), by counsel, and files this 

Motion (“Motion”) seeking approval of a compromise or settlement pursuant to Rule 9019 of the 

Fed. Rules of Bankr. Procedure, and in support of such Motion, states as follows: 

1. This case is before this Court pursuant to pursuant to a voluntary petition filed under 

Chapter 7 of the Bankruptcy Code by Richard Murray (“Murray” or the “Debtor”) on or about 

February 18, 2016. Thereafter, Klinette H. Kindred was appointed as the interim Chapter 7 trustee. 

2. Effective January 24, 2017, Ms. Kindred resigned and Janet M. Meiburger was 

appointed as Chapter 7 Trustee (“Trustee”) and continues to serve in that capacity. 

3. The Trustee has filed a Motion herein seeking approval of this Court for sale of 

certain real property of the Debtor and/or this estate, with such sale to be made free and clear of 

certain liens and interests pursuant to 11 U.S.C. 363(f) (the “363 Motion”). Under the 363 

Motion, the Trustee seeks approval of a proposed sale of certain real property owned by the 

Debtor and located at 1727 Dogwood Drive, Alexandria, Virginia (the “Property”). The Property 

was originally titled in the Debtor’s sole name, and was transferred in 2013 to the Debtor and his 

wife as tenants by the entirety. 

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4. The Trustee has previously filed a Complaint against the Debtor on or about May 

4, 2016 in the matter of Meiburger, Trustee v. Murray, Adv. Proc. #16-01074-BFK (the “544 

Complaint”) 1 seeking to recover the transfer of the Property as a fraudulent conveyance (the 

“544 Complaint”). The 544 Complaint was thereafter settled by execution of a Settlement 

Agreement which was approved by this Court by order entered on May 2, 2017 (Dkt. #151), and 

under which the Property was acknowledged as property of this bankruptcy estate and agreements 

reached with respect to the marketing and sale of the Property for the benefit of this estate. 

5. The 363 Motion seeks approval of sale of the Property, free and clear of certain liens, 

interests and encumbrances. One such lien, interest or encumbrance is a series of three (3) 1998 

judgments currently held by DEEK Investment Limited Partnership (“DEEK”) as successor to 

Nationsbank. DEEK has obtained leave of this Court to file a late proof of claim and currently 

asserts a secured claim $127,399.27 (the “DEEK Claim”). 

6. The Trustee has asserted that there are potential objections to the filed claim(s) of 

DEEK. Notwithstanding the potential objections, the Trustee has reached agreement on terms of 

settlement and compromise of the DEEK Claim. The terms of settlement reached between the 

Trustee and DEEK are as follows: 

a. The DEEK Claim shall be allowed in the total amount of $127,399.27, with 

interest to accrue at the rates identified in the respective judgments from 

September 18, 2017. To the extent that DEEK is entitled to recovery of any 

attorneys’ fees based upon the judgments underlying its claims, DEEK shall 

                                                            

1 All adversary proceedings were initially filed in the name of “Klinette Kindred, Trustee v. Richard Murray” but 

were amended thereafter to reflect the current identity of the successor Chapter 7 Trustee. 

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be permitted to increase the amount stated above by the attorneys’ fees so 

allowed. 

b. Subject to the agreement with respect to payment in satisfaction of the secured 

claim(s), the full amount of the allowed DEEK Claim shall be deemed secured 

by an interest in the Property pursuant to the underlying judgment liens 

recorded and held by DEEK. 

c. DEEK shall receive and shall accept, in full satisfaction of its secured claim(s) 

against the Property, payment in the amount of Ninety Thousand and no/100 

Dollars ($90,000.00), with such payment to be made from the proceeds of sale 

of the Property promptly upon closing thereunder. 

d. The balance of the DEEK Claim shall be allowed as a general unsecured 

claim in this Chapter 7 case, and permitted to share in any distributions made 

to unsecured creditors herein.2

e. The DEEK Claim shall remain secured as against the Property without need 

for any refiling or renewal of the underlying judgments securing such claims. 

7. Terms of the settlement was reached by the Trustee and DEEK after i) the filing 

of the DEEK Claim, ii) a review of potential defenses to such claim(s), and iii) due consideration 

of the costs and benefits of litigation. The Trustee believes, in her business judgment, that 

resolution of matters pursuant to the proposed settlement with DEEK is in the best interests of 

this estate. Uncertainties with respect to any greater outcome in litigation, coupled with the likely 

                                                            

2 The Trustee states that after payment of administrative expenses and priority tax claims filed herein, that it is 

unlikely any actual distribution to unsecured claims will be made herein. 

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costs of litigation, favor compromise and settlement of matters in dispute so that economic risks 

and expectations can be better quantified and controlled by the Trustee. 

8. The Trustee represents that the parties to this proposed compromise and 

settlement have negotiated in good faith, have reached agreement on the terms and conditions set 

forth in the Settlement Agreement, and that such terms and conditions are reasonable in the 

Trustee’s best business judgment. Pursuant to Rule 9019 of the Fed. Rules of Bankr. Procedure, 

this Court may approve a compromise or settlement of claims or controversies upon proper 

notice to creditors. Rule 9019(a), Fed. Rules of Bankr. Procedure. Where terms of settlement 

provide tangible benefits to the estate in return for the sacrifice of uncertain claims, the court 

exercises proper discretion in approving such settlement. See, e.g., In re Bond, 16 F.3d 408 (4th

Cir. 1994). The Trustee represents that the tangible benefits generated by the settlement with 

DEEK herein outweigh the uncertainty and costs of any litigation of such claims. 

WHEREFORE, the Trustee prays that this Honorable Court approve the terms of the 

proposed settlement with DEEK as identified herein, and that the Trustee have such other and 

further relief as this Court may deem just. 

 JANET M. MEIBURGER, TRUSTEE 

 By Counsel 

 

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 /s/ Kevin M. O’Donnell 

Kevin M. O’Donnell 

HENRY & O’DONNELL, P.C. 

300 N. Washington Street 

Suite 204 

Alexandria, VA 22314 

(703) 548-2100 telephone 

(703) 548-2105 facsimile 

kmo@henrylaw.com

Counsel to Janet M. Meiburger, Trustee 

CERTIFICATE OF SERVICE

I hereby certify that on September 22, 2017, a true copy of the foregoing pleading was 

mailed, postage pre-paid, to the U.S. Trustee, Debtor, Debtor’s counsel, and all creditors and 

parties in interest as noted on the attached mailing matrix. 

 /s/ Kevin M. O’Donnell 

 Kevin M. O’Donnell 

Case 16-10548-BFK Doc 165 Filed 09/22/17 Entered 09/22/17 15:02:03 Desc Main

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 Label Matrix for local noticing Barklays Bank of Delaware Jonathan Robert Bronley 

 0422-1 125 S. West Street Bronely Law, PLLC 

 Case 16-10548-BFK Wilmington, DE 19801-5014 10387 Main Street, Suite 201 

 Eastern District of Virginia Fairfax, VA 22030-2453 

 Alexandria 

 Fri Sep 22 13:32:11 EDT 2017 

 Burke & Herbert Bank & Trust Company Burke & Herbert Bank & Trust Company Burke & Herbert Bank and Trust 

 c/o Blankingship & Keith, P.C. 100 S. Fairfax Street 100 South Fairfax Street 

 4020 University Drive, Suite 300 Alexandria, VA 22314-3383 Alexandria, VA 22314-3383 

 Fairfax, VA 22030-6802 

 

 CITI Card Chase Cheryle Wintermyer 

 PO Box 9001037 PO Box 1512 267 Kentlands Boulevard 

 Louisville, KY 40290-1037 Wilmington, DE 19850-0000 Suite 250 

 Gaithersburg, MD 20878-5446 

 Citibank, N.A. Commonwealth of Virginia DEEK Investment Limited Partnership, LP 

 c/o Quantum3 Group LLC Department of Taxation C/o Union Financial Corporation 

 PO Box 280 P.O. Box 2156 5510 Edson Lane 

 Kirkland, WA 98083-0280 Richmond, VA 23218-2156 Rockville, MD 20852-3135 

 DEEK Investment Limited Partnership, LP Michael H. Doherty Andrew S. Goldstein 

 c/o Roth Jackson 4010 University Drive Magee Goldstein Lasky & Sayers, PC 

 Attn: Joseph F. Jackson, Esq. Suite 102 PO Office Box 404 

 8200 Greensboro Drive, Suite 820 Fairfax, VA 22030-6805 Roanoke, VA 24003-0404 

 McLean, Virginia 22102-4925 

 

 Internal Revenue Service Joseph F. Jackson Joyce D’Avanzo 

 PO Box 7346 Roth Jackson Gibbons Condlin, PLC 1727 Dogwood Drive 

 Philadelphia, PA 19101-7346 8200 Greensboro Drive, Suite 820 Alexandria, VA 22302-2300 

 McLean, VA 22102-4925 

 Richard J. Link M. Christine Maggard Janet M. Meiburger 

 Karpel & Link Brock & Scott, PLLC The Meiburger Law Firm, P.C. 

 200-A Monroe Street 484 Viking Drive, Suite 203 1493 Chain Bridge Road, Suite 201 

 Suite 330 Virginia Beach, VA 23452-7321 McLean, VA 22101-5726 

 Rockville, MD 20850-4422 

 

 James R. Meizanis Michael H. Doherty, Administrator CTA dbn fo Michael H. Doherty,Curator 

 Blankingship & Keith, PC c/o Jonathan R. Bronley, Esq. 10387 Main Street 

 4020 University Drive 10387 Main Street, Suite 201 Suite 201 

 Suite 300 Fairfax, Virginia 22030-2453 Fairfax, VA 22030-2453 

 Fairfax, VA 22030-6802 

 

 Richard Murray John J. O’Donnell Jr. Kevin M. O’Donnell 

 1727 Dogwood Drive 601 King St. Suite 400 Henry & O’Donnell, P.C. 

 Alexandria, VA 22302-2300 Alexandria, VA 22314-3151 300 N. Washington St. 

 Suite 204 

 Alexandria, VA 22314-2530 

 

 Regents Mortgage Company Regions Bank dba Regions Mortgage Judy A. Robbins 11 

 PO Box 18001 PO Box 1860 Office of the U.S. Trustee - Region 4 

 Hattiesburg, MS 39404-8001 Memphis TN 38101-1860 115 South Union Street, Room 210 

 Alexandria, VA 22314-3361 

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 Kermit A. Rosenberg Tyler, Bartl, Ramsdell & Count, PLC UST smg Alexandria 

 Bailey & Ehrenberg PLLC 300 North Washington Street, Ste. 202 Office of the U. S. Trustee 

 1015 18th Street, NW Alexandria, VA 22314-2530 115 South Union Street, Suite 210 

 Suite 204 Alexandria, VA 22314-3361 

 Washington, DC 20036-5217 

 

 (p)VIRGINIA DEPARTMENT OF TAXATION WFDS/WDS Wells Fargo 

 P O BOX 2156 PO Box 1697 PO Box 17900 

 RICHMOND VA 23218-2156 Winterville, NC 28590-1697 Denver, CO 80217-0900 

 Wells Fargo Bank, N.A., dba Wells Fargo Deal Cheryle Wintermyer 

 1451 Thomas Langston Road C/o Goodwin Weber PLLC 

 Winterville, NC 28590-8872 267 Kentlands Blvd, Suite 250 

 Gaithersburg, MD 20878-5446 

 The preferred mailing address (p) above has been substituted for the following entity/entities as so specified 

 by said entity/entities in a Notice of Address filed pursuant to 11 U.S.C. 342(f) and Fed.R.Bank.P. 2002 (g)(4). 

 Virginia Dept of Taxation 

 PO Box 1115 

 Richmond, VA 23218-0000 

 The following recipients may be/have been bypassed for notice due to an undeliverable (u) or duplicate (d) address. 

 (d)Kevin M. O’Donnell (u)Regions Mortgage End of Label Matrix 

 Henry & O’Donnell, P.C. Mailable recipients 37 

 300 N. Washington Street Bypassed recipients 2 

 Suite 204 Total 39 

 Alexandria, VA 22314-2530

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