Clara P. Swanson - VSB #21837

Chapter 7 Bankruptcy Trustee

708 Thimble Shoals Boulevard, Suite 1

Newport News, VA 23606

(757) 873-0470 (Office)

(757) 873-0473 (Facsimile)

E-mail: clara.swanson@verizon.net

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Norfolk Division

IN RE: THE PEARL GROUP, INC Case No.: 19-73484 FJS

Debtor Chapter 7

AMENDED MOTION 

TO REQUIRE THE REAL ESTATE AGENTS AND REAL ESTATE BROKERS

TO DISGORGE FEES

Clara P. Swanson, the Chapter 7 Trustee for the bankruptcy estate of The Pearl Group, 

Inc., states as follows:

1. On September 19, 2019, the debtor filed a Chapter 11 voluntary petition.

2. Lloyd Renwick was the debtor designee.

3. On November 29, 2019, an Order granting the motion to convert the case to a 

Chapter 7, and appointed Clara P. Swanson as the Chapter 7 Bankruptcy Trustee.

823 W. 28TH STREET, NORFOLK

4. On December 17, 2019, this Chapter 7 Trustee filed a motion to employ Real 

Estate Agent, Denise Cowan, of RE/MAX Ultra, to evaluate, list and market for sale the real 

property located at 823 W. 28th St., Norfolk. (Docket No. 47).

5. On December 23, 2019, the Court entered an Order withdrawing the application 

to employ Denise Cowan as Real Estate Agent, and the Order states the Real Estate Agent may 

not be disinterested. (Docket No. 48)

6. On January 30, 2020, the Chapter 7 Trustee filed a Notice and Motion to Sell 823 

W. 28th St., Norfolk. (Docket No. 53)

7. The motion states that “no brokers’ commission shall be payable from the sale”.

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8. Karen Crowley on behalf of Colby Sherwood filed an objection on February 19, 

2020, to the sale motion. (Docket No. 57)

9. An Order was entered on March 30, 2020, granting Motion to Approve Settlement 

and Authorize the Sale of 823 W. 28th St., Norfolk, to Jatori Brunson.

10. No commissions were paid to agents.

3212 LENS AVE., NORFOLK

11. On January 30, 2020, the Trustee received an offer from Rachel Addleman to 

purchase 3212 Lens Ave., Norfolk.

12. The Trustee filed a Notice and Motion to Sell 3212 Lens Ave., Norfolk.

13. The motion states that “no brokers’ commissions shall be payable from the sale”. 

(Docket No. 55)

14. The January 6, 2020, Agreement was signed only by the purchaser and the 

Trustee. There were no agents.

15. At a Court hearing on March 30, 2020, the Motion to Sell was withdrawn.

16. On March 31, 2020, an Order Withdrawing the Motion to Sell was entered 

(Docket No. 70)

17. On March 31, 2020, this Trustee received an offer for the sale of 3212 Lens Ave., 

Norfolk.

18. The Agreement states that Mickey S. Collins (Century 21 Top Producers) is the 

selling agent and that Denise Cowan (RE/MAX Ultra) is the listing agent.

19. This Trustee crossed out all the information related to Denise Cowan and handwrote initials CPS and the date on all the pages.

20. The Trustee filed a Notice of Motion to Sell 3212 Lens Ave., Norfolk.

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21. Motion states that “no brokers’ commissions shall be payable from the sale”.

(Docket No. 71)

22. The Court Order granting the motion to sell the property was docketed on April 

24, 2020. (Docket No. 80)

23. The closing attorney paid the commissions to the Real Estate Brokers. The HUD 

stated that the Real Estate Broker for the Buyer, Century 21 Top Producers, and the Real Estate 

Broker for the Seller, RE/MAX Ultra, each received $5,397.00 from the settlement agent.

24. On April 30, 2020, the Trustee filed a Report of Sale for 3212 Lens Ave., 

Norfolk. (Docket No. 83)

25. Although Denise Cowan was not employed she did remain involved and she 

conveyed the offers from the purchasers.

26. This Trustee spoke with Denise Cowan several times regarding the Lens property.

27. In a January 2021 call with Denise Cowan she stated that she knew she was not 

hired and that she would not get a commission from me (i.e. the bankruptcy estate).

28. A week later this Trustee called Denise Cowan again and left a message. She 

called back and stated that she had thought Lloyd Renwick had given me some money but that 

she now sees that he did not.

29. Denise Cowan stated that she does not have the money to repay and she will just 

go to Court.

30. This Trustee spoke with the selling agent, Mickey Collins. She was unaware that 

Denise Cowan was not the selling agent for the Lens property. Ms. Collins stated that if she is 

required to refund her commission she would sue Denise Cowan and the Real Estate Broker, 

RE/MAX Ultra.

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31. This Trustee did not promptly address the problem when she realized that the real 

estate commission fees were paid at closing.

32. This Trustee is now requesting that the Court require that the Brokers and Agents 

refund the commission paid from the sale of 3212 Lens Avenue, or in the alternative require 

Denise Cowan, Agent and RE/MAX Ultra to refund the $5,397.00 and that Mickey Collins, 

Agent and Century 21 Top Producers be authorized to receive the $5,397.00 seller’s commission.

Respectfully Submitted,

/s/Clara P. Swanson 

Clara P. Swanson

Chapter 7 Bankruptcy Trustee

CERTIFICATE OF SERVICE

I hereby certify that on this 2nd day of April, 2021, a true and accurate copy of the 

foregoing Motion was served by first class U.S. Mail (postage prepaid), on the following parties:

Nicholas S. Herron

Office of the US Trustee

Room 625, Federal Building

200 Granby Street

Norfolk, VA 23510-1814

U.S. Trustee

John E. Bedi

501 Independence Pkwy.

Ste. 1

Chesapeake, VA 23320

Debtor’s Counsel

Denise Cowan

RE/MAX Ultra

1421 B. Kempsville Road

Chesapeake, VA 23320

Real Estate Agent

Mickey S. Collins

Century 21 Top Producers

316 Office Square Lane

Virginia Beach, VA 23462

Real Estate Agent

Jeffrey Anderson

Anderson & Pittman

138 Professional Circle

Williamsburg, VA 23185

Registered Agent for

RE/MAX Ultra

Herbert V. Kelly, Jr.

701 Town Center Drive

Suite 800

Newport News, VA 23606

Attorney for 

Century 21 Top Producers

/s/Clara P. Swanson 

Clara P. Swanson

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