H. Jason Gold, Va. Bar No. 19117 

Dylan G. Trache, Va. Bar No. 45939 

NELSON MULLINS RILEY & SCARBOROUGH LLP 

101 Constitution Avenue, NW, Suite 900 

Washington, DC 20001 

(202) 689-2800 

Counsel to the Chapter 7 Trustee 

~#4843-3716-3884~ 

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE EASTERN DISTRICT OF VIRGINIA 

Alexandria Division 

) 

In re: ) Chapter 7 

) 

LANSDOWNE CONSTRUCTION LLC, ) Case No. 18-11754-KHK 

) 

Debtor. ) 

MOTION TO ESTABLISH PROCEDURES GOVERNING 

AVOIDANCE ACTION ADVERSARY PROCEEDINGS 

COMES NOW, H. Jason Gold, chapter 7 trustee ("Trustee"), by his undersigned counsel 

and moves1 this Court for the entry of an order establishing certain procedures governing the 

avoidance actions that the Trustee anticipates filing over then next several months, stating to the 

court as follows: 

BACKGROUND 

1. On May 15, 2018 (the "Petition Date"), the above-captioned debtor, Lansdowne 

Construction LLC ("Debtor"), filed a voluntary petition for relief under Chapter 7 of Title 11 of 

the United States Bankruptcy Code. 

2. H. Jason Gold was subsequently appointed chapter 7 trustee. 

3. The Debtor’s Statements of Financial Affairs ("SOFA") disclose more than 

$6,000,000 in aggregate transfers to creditors in the ninety days prior to the Petition Date. 

Additional transfers not disclosed on the SOFA may exist. 

4. The Trustee intends to make demand upon the recipients of pre-petition transfers 

in an effort to attempt to resolve such demands prior to commencing litigation. 

1

In accordance with Local Rule 9013-1(G)(1), the Trustee is combining his memorandum of points and authorities 

with this Motion. 

Case 18-11754-KHK Doc 85 Filed 07/13/18 Entered 07/13/18 15:23:29 Desc Main

 Document Page 1 of 4
2 

~#4843-3716-3884~ 

5. Notwithstanding these efforts, the Trustee believes that it will be necessary to file 

complaints in the coming months seeking recovery of transfers which the Trustee believes to be 

avoidable under §§ 544 – 550 of the Bankruptcy Code ("Avoidance Actions"). 

JURISDICTION

6. The Court has jurisdiction over this matter pursuant to 28 U.S.C. § 1334. Venue 

is proper pursuant to 28 U.S.C. §§ 1408 and 1409. This matter is a core proceeding within the 

meaning of 28 U.S.C. § 157(b)(2), as are the adversary proceedings which the Trustee anticipates 

commencing. 

RELIEF REQUESTED

7. The Trustee requests that the Court establish the procedures ("Procedures") 

attached hereto as Exhibit A to facilitate the administration and resolution of the Avoidance 

Actions. 

APPLICABLE AUTHORITY 

8. Section 105(a) of the Bankruptcy Code provides that the Court "may issue any 

order, process, or judgment that is necessary or appropriate to carry out the provisions of [the 

Bankruptcy Code]." 11 U.S.C. § 105(a). In addition, Federal Rule of Civil Procedure 16, 

applicable to the anticipated avoidance actions through Federal Rule of Bankruptcy Procedure 

7016 provides the Court with ample discretion to establish pre-trial procedures and to facilitate 

the expeditious disposition of cases. See Fed. R. Civ. P. 16. 

9. Bankruptcy Rule 9019(a) generally requires approval of settlements upon a 

motion, providing 21 days notice to creditors. However, Bankruptcy Rule 9019(b) authorizes the 

Court to alter these requirements and establish streamlined settlement procedures in appropriate 

cases. 

Case 18-11754-KHK Doc 85 Filed 07/13/18 Entered 07/13/18 15:23:29 Desc Main

 Document Page 2 of 4
3 

~#4843-3716-3884~ 

10. Establishment of the proposed procedures will aid the Trustee in his efforts to 

reduce expenses, will benefit all parties by reducing the amount of filings required to obtain 

certain relief, and facilitate judicial economy by eliminating the need for some hearings and 

reducing the number of hearings required in these cases. 

11. Further, because the Trustee anticipates attempting to resolve matters without the 

filing of a complaint, he also requests that the settlement provisions of the Procedures apply in 

cases where demand has been made, but no complaint is filed. 

12. The Trustee further believes that the proposed procedures are in fact procedural in 

nature and will not impact the substantive rights of any party. 

13. Similar relief has been granted in cases in this district where large numbers of 

avoidance actions are contemplated. See In re Circuit City Stores, Inc., et al., Case No. 08-

35653-KRH (Bankr. E.D. Va. November 4, 2010)(Docket No. 8898); In re Vijay K. Taneja, et 

al., Case No. 08-13293-RGM (Bankr. E.D. Va. October 1, 2010)(Docket No. 1831); In re James 

River Coal Company, et al., Case No. 14-31848-KRH (Bankr. E.D. Va. February 2, 

2015)(Docket No. 871) and In re The Truland Group, Inc., et al., Case No. 14-12766-BFK 

(Bankr. E.D. Va. September 23, 2015)(Docket No. 780). 

CONCLUSION 

WHEREFORE, the Trustee respectfully requests that the Court enter an Order: (i) 

approving the Procedures; (ii) making the Procedures applicable in all Avoidance Actions, 

including, with respect to the settlement provisions, Avoidance Actions where no complaint is 

filed; and (iii) for such further relief as is just and proper. 

Case 18-11754-KHK Doc 85 Filed 07/13/18 Entered 07/13/18 15:23:29 Desc Main

 Document Page 3 of 4
4 

~#4843-3716-3884~ 

Respectfully submitted, 

H. JASON GOLD, TRUSTEE 

By Counsel 

NELSON MULLINS RILEY & SCARBOROUGH LLP 

101 Constitution Avenue, NW, Suite 900 

Washington, DC 20001 

Telephone: (202) 689-2800 

Facsimile: (202) 689-2860 

By: /s/ Dylan G. Trache 

H. Jason Gold, Va. Bar No. 19117 

Dylan G. Trache, Va. Bar No. 45939 

Counsel to the Chapter 7 Trustee 

CERTIFICATE OF SERVICE 

I HEREBY CERTIFY that on this 13th day of July 2018, a copy of the foregoing Motion 

was delivered by electronic mail to the parties on the limited service list.2

/s/ Dylan G. Trache 

Dylan G. Trache 

2

 Pursuant to Local Rule 5005-1(C)(8), the attached service list is not to be served on each of the parties, but is 

attached to the original Certificate of Service filed with the Court. 

Case 18-11754-KHK Doc 85 Filed 07/13/18 Entered 07/13/18 15:23:29 Desc Main

 Document Page 4 of 4