Paula S. Beran, Esquire (Va. Bar No. 34679)

Tavenner & Beran, PLC 

20 North Eighth Street, Second Floor

Richmond, Virginia 23219

Telephone: (804) 783-8300

Telecopy: (804) 783-0178

Counsel for Lynn L. Tavenner, Chapter 7 Trustee

UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Richmond Division

In re: Case No.

LeClairRyan PLLC,1 19-34574-KRH

Debtor Chapter

7

TRUSTEE’S SECOND MOTION TO MODIFY PROCEDURES 

REGARDING THE PROSECUTION AND/OR SETTLEMENT OF

ACTIONS INVOLVING FORMER ATTORNEYS AND CERTAIN OTHERS

AND MEMORANDUM IN SUPPORT THEREOF

Lynn L. Tavenner, Trustee, not individually but solely in her capacity as the Chapter 7 

trustee (in such capacity, the “Trustee”) of the bankruptcy estate (the “Estate”) of LeClairRyan 

PLLC (“LeClairRyan” and/or the “Debtor”), in the above-referenced Chapter 7 case (the 

“Bankruptcy Case” and/or the “Case”), by and through her undersigned counsel, pursuant to §§

102(1), 105, 108, and 704 of the United States Code, 11 U.S.C. §§ 101-1532 (as amended, the 

“Bankruptcy Code”), Rules 7016 and 9019 of the Federal Rules of Bankruptcy Procedure (the 

“Bankruptcy Rules,” and each individually a “Bankruptcy Rule”), and Rules 7016-1 and 9019-

1 of the Local Rules of Bankruptcy Procedure (the “Local Rules,” and each individually a “Local 

Rule”), hereby moves (the “Motion”) for entry of an order modifying certain procedures by which 

1 The principal address of the Debtor as of the Petition Date was 4405 Cox Road, Glen Allen, Virginia 23060, and the 

last four digits of the Debtor’s federal tax identification number are 2451.

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the Trustee, on behalf of the Estate, may prosecute and/or settle disputes of alleged causes of 

actions involving various matters, including but not limited to, fiduciary duties, preference 

payments, fraudulent transfers, other types of actions and/or avoidable transfers provided for in 

Chapter V of the Bankruptcy Code and/or under other applicable law. Specifically, the Trustee 

seeks to modify certain discrete aspects of this Court’s Order, ECF No. 533, as modified by this 

Court’s Order, ECF No. 929 (collectively, the “FAO Order”). In support of the Motion, the 

Trustee respectfully states as follows:

JURISDICTION

1. The United States Bankruptcy Court for the Eastern District of Virginia (the 

“Court”) has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334 and the Standing 

Order of Reference from the United States District Court for the Eastern District of Virginia, dated 

August 15, 1984.

2. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2).

3. Venue is proper pursuant to 28 U.S.C. §§ 1408 and 1409.

Background

4. On September 3, 2019 (the “Petition Date”), the Debtor filed for relief under 

Chapter 11 of the Bankruptcy Code. Pursuant to §§ 1007 and 1108 of the Bankruptcy Code, the 

Debtor operated as a debtor-in-possession.

5. On September 12, 2019, the United States Trustee filed its Motion to Convert Case 

to Chapter 7 (the “Motion to Convert”) and notice thereof. ECF No. 61. At a hearing on 

September 26, 2019, the Court denied the Motion to Convert. However, per agreement between 

the Debtor, the United States Trustee, and ABL Alliance, LLLP (the “Lender”), the Debtor’s 

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bankruptcy case was converted to a case under Chapter 7 of the Bankruptcy Code on October 4, 

2019 (the “Conversion Date”).

6. Upon conversion, Lynn L. Tavenner was appointed interim trustee, and no trustee 

having been elected at the meeting of creditors, she continues to serve as Trustee.

7. While still in the initial stages of her investigation and not fully appreciating the 

extensive breadth of actions that would result from said investigation, the Trustee, with the 

assistance of her counsel, filed her Motion for an Order Establishing Procedures Regarding the 

Prosecution of Actions Involving Former Attorneys and Certain Others and Memorandum in 

Support Thereof (the “FAO Procedures Motion”),2 ECF No. 457. The same was granted by this 

Court’s Order dated June 15, 2020, ECF No. 533.

8. Thereafter the Trustee filed her Motion to Amend – Trustee’s Motion to Modify 

Procedures Regarding the Settlement of Actions Involving Former Attorneys and Certain Others 

and Memorandum In Support Thereof (the “FAO Procedures Modification Motion”), ECF No. 

852, which was granted by this Court’s Order dated June 24, 2021, ECF No. 929.

9. Since entry of the initial FAO Order on June 15, 2020, and pursuant to the 

procedures authorized therein, the Trustee, through counsel, has made demand on over 210

Persons. 3 And, with the assistance of counsel and, in certain instances, Court approved mediators, 

the Trustee has resolved approximately 70 of those demands.4

10. Approximately 60 of said demands are currently the subject of this Court’s 

mediation procedures delineated in the FAO Action Procedures as authorized by the FAO Order; 

2 Terms not otherwise defined herein shall have the meaning prescribed in the FAO Procedures Motion. 

3 As said term is defined at 11 U.S.C. § 101 (41).

4 As of the filing of this Motion, certain of those resolutions were in the process of being documented. Upon 

completion of said documentation, the Trustee will seek approval of said resolutions as required under the FAO Order. 

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approximately 11 are within the period, pursuant to the terms of the FAO Order, upon which said 

Person may elect to proceed with mediation. And most of these matters include one or more claims

pursuant to §§ 544, 547, and/or 548 of the Bankruptcy Code, as well as including claims under 

other applicable laws. 

11. Pursuant to 11 U.S.C. § 546, the statutory deadline to bring an action or proceeding 

under §§ 544, 547, and/or 548 (among others) of the Bankruptcy Code is September 2, 2021, as 

is the statutory deadline contained in § 108 (collectively and each, the “Statutory Deadline”), 

absent an agreement, tolling, and/or other equitable remedies. 

 

RELIEF REQUESTED

12. Based on the foregoing, the Trustee maintains that it is prudent to request discrete

modifications of the FAO Action Procedures. Accordingly, by this Motion, the Trustee is seeking 

to modify the FAO Order to ensure that the intent and basis for implementing the FAO Action 

Procedures remains intact while not jeopardizing the value of Estate assets given the Statutory 

Deadline.

5

PROPOSED REVISED PROCEDURES

13. The Trustee proposes that the FAO Order be modified to provide that:

Notwithstanding anything to the contrary in the FAO Action Procedures:

a. For any Person who has made the Pre-Complaint Mediation Election on or 

before August 20, 2021, the Trustee shall be permitted at any time, in her sole 

5 Pursuant to the FAO Action Procedures authorized by the FAO Order, although not a traditional complaint that 

initiates an adversary proceeding, each FAO Demand Letter arguably commenced an action under §§ 546 and/or 108. 

However, give the language of Rule 7001 which references “adversary proceeding”, the Trustee, out an abundance of 

caution, proposes the modified procedures to eliminate ambiguity and/or uncertainty.

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and absolute discretion, to (i) enter into a tolling agreement (each a “Tolling 

Agreement”) to extend on a case by case basis the Statutory Deadline, (ii) file 

a complaint (each a “Sealed Complaint”) with this Court using the sealed 

document docketing event in the ECF system pursuant to CM/ECF Policy 6 

(as revised effective December 1, 2019) or as otherwise instructed by the 

Court and/or (iii) for any Person that the Trustee perceives is an indispensable 

party to an existing complaint, add said Person to said complaint to the extent 

that said amendment is allowed under Rule 7015 (“Indispensable Party 

Amended Complaint”).

b. The Court shall not issue a summons for any Sealed Complaint.

c. For any matter involving a Sealed Complaint, within 14 days of the filing of a 

Mediator’s Report wherein the FAO Action has not settled, the Trustee shall 

seek, pursuant to procedures provided by the Court, to have (i) the Sealed 

Complaint’s seal protection removed such that the complaint is available for 

public view (each an “Unsealed Complaint”) and (ii) a summons issued.

d. The summons issued for each Unsealed Complaint will be the Court’s 

standard form with the exception that it will inform the defendant that 

he/she/it has thirty days from the date of service of the summons (rather than 

the date of issuance) to respond to the Unsealed Complaint and the initial 

pretrial conference will be set for the next Omnibus Hearing that is at least 67

days after the issuance of the summons. The mediation protocol found at 

section 3 of the FAO Action Procedures shall not apply to any Unsealed 

Complaint.

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e. Sections 2A, 2D and 2E of the FAO Action Procedures shall not apply to any 

matter involving an Unsealed Complaint.

f. Sections 2A, 2D, 2E, and 2G and sections 3A, 3B, 3I, 3J, and 3L of the FAO 

Action Procedures shall not apply to any matter involving an Indispensable 

Party Amended Complaint. To the extent a Person subject to an Indispensable 

Party Amended Complaint, who has not previously mediated pursuant to the 

FAO Order, desires to mediate, (i) said Person shall select a Mediator and (ii) 

the mediation shall proceed under sections 3C, 3D, 3E, 3F, 3G, 3H, and 3K, 

of the FAO Actions Procedures or as otherwise provided by the Court.

g. For any matter involving a Sealed Complaint that is resolved during the 

Settlement Period, said complaint shall be dismissed as agreed by the parties 

and thereafter stricken from the Court’s docket pursuant to procedures 

provided by the Court. 

Legal Authority

14. The statutory predicates for the litigation/mediation relief sought herein are 

Bankruptcy Code §§ 105, 108, and 704 and Bankruptcy Rules of Procedure 7016 and 9019, and 

Local Rule 9019-1. Section 105(a) states that a bankruptcy 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). Federal Rule of Civil Procedure 16, applicable to adversary proceedings 

through Federal Rule of Bankruptcy Procedure 7016, gives the court discretion to manage the 

course of actions in various ways to facilitate the “just, speedy, and inexpensive disposition of the 

action.” Similar relief was granted by this Court in Order Approving Procedures and Permitting 

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Trustee to Prosecute and Compromise NFA Avoidance Actions ECF No. 385, as well as in several 

other cases pending in this district, including but not limited to Order Granting Liquidating 

Trustee's Motion for an Order Establishing Avoidance Action Procedures, In re Morris Schneider 

Wittstadt Va., PLLC, Case No. 15-33370 (Bankr. E.D. Va. Feb. 13, 2017), ECF No. 1318; Order 

Approving Procedures and Permitting Trustee to Prosecute and Compromise Avoidance Actions; 

In re James A. Moncure, Case No. 14-31546-KLP (Bankr. E.D. Va. Mar. 25, 2016), ECF No. 382; 

Order Approving Procedures and Permitting Trustee to Prosecute and Compromise Avoidance 

Claims, In re RoomStore, Case No. 11-37790-KLP (Bankr. E.D. Va. Nov. 27, 2013), ECF No. 

1755; Order Establishing Procedures for Avoidance Action Adversary Proceedings, In re 

LandAmerica Fin. Group, Inc., Case No. 08-35994 (Bankr. E.D. Va. Jan. 20, 2011), ECF No. 

4213; and Order Establishing Procedures for Avoidance Action Adversary Proceedings, In re 

Circuit City Stores, Inc., Case No. 08-35653 (Bankr. E.D. Va. Nov. 4, 2010), ECF No. 8898. In 

addition, the procedures proposed herein are consistent with Local Rule 9019-1.

NOTICE

15. Notice of this Motion has been provided by U.S. Mail, postage prepaid, email, or 

by ECF notice to (a) the Office of the United States Trustee; (b) the Core Parties and 2002 List as 

defined in the Order Establishing Certain Notice, Case Management, and Administrative 

Procedures, ECF No. 38; (c) all parties that properly filed a request for notice of papers in this 

case pursuant to Bankruptcy Rule 2002; and (d) those Persons, through counsel where appropriate,

referenced in paragraph 10 herein. The Trustee submits that no other or further notice need be 

given.

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NO PRIOR RELIEF

16. Other than through the FAO Procedures Motion and the FAO Procedures 

Modification Motion, no prior request for the relief sought herein has been made to this Court or 

any other court.

WHEREFORE, the Trustee respectfully requests the Court enter an Order substantially 

in the form attached hereto as Exhibit A: (i) modifying the FAO Action Procedures as provided 

herein and (ii) granting such other and further relief as the Court may deem proper.

Respectfully submitted,

LYNN L. TAVENNER, CHAPTER 7 TRUSTEE

Dated: August 5, 2021

Richmond, Virginia

By: /s/ Paula S. Beran

Paula S. Beran, Esquire (VSB No. 34679)

PBeran@TB-LawFirm.com

Tavenner & Beran, PLC

20 North 8th Street

Richmond, Virginia 23219

Telephone: (804) 783-8300

Telecopier: (804) 783-0178

Counsel for Lynn L. Tavenner, Chapter 7 Trustee

CERTIFICATE OF SERVICE

I hereby certify that on the 5th day of August, 2021, a true and correct copy of the foregoing 

Trustee’s Second Motion to Modify Procedures Regarding the Prosecution and/or Settlement of 

Actions Involving Former Attorneys and Certain Others and Memorandum in Support Thereof

was served, via electronic delivery and/or first class mail, postage prepaid to: (a) the Office of the 

United States Trustee; (b) the Core Parties and 2002 List as defined in the Order Establishing 

Certain Notice, Case Management, and Administrative Procedures, ECF No. 38; (c) all parties 

that properly filed a request for notice of papers in this case pursuant to Bankruptcy Rule 2002; 

and (d) those Persons, through counsel where appropriate, referenced in paragraph 10 herein.

/s/ Paula S. Beran

Paula S. Beran, Esquire (Va. Bar No. 34679)

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UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Richmond Division

In re: Case No.

LeClairRyan PLLC,6 19-34574-KRH

Debtor Chapter

7

ORDER MODIFYING PROSECUTION AND 

SETTLEMENT PROCEDURES FOR FAO ACTIONS 

This matter coming before the Court on the Trustee’s Second Motion to Modify Procedures 

Regarding the Prosecution and/or Settlement of Actions Involving Former Attorneys and Certain 

Others and Memorandum in Support Thereof (the “Motion”)7 filed by Lynn L. Tavenner, Trustee, 

not individually but solely in her capacity as the chapter 7 trustee (in such capacity, the “Chapter 

7 Trustee”) of the bankruptcy estate (the “Estate”) of LeClairRyan PLLC, the above-captioned 

debtor; the Court having reviewed the Motion and having heard the statements of counsel in 

support of the relief requested in the Motion at a hearing before the Court (the “Hearing”); the 

Court finding that (a) the Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 

1334; (b) this is a core proceeding pursuant to 28 U.S.C. § 157(b)(2); (c) venue is proper before 

this Court pursuant to 28 U.S.C. §§ 1408 and 1409; and (d) notice of the Motion (and service of 

the proposed order) was sufficient under the circumstances; and the Court having determined that 

6 The principal address of the Debtor as of the Petition Date was 4405 Cox Road, Glen Allen, Virginia 23060, and the 

last four digits of the Debtor’s federal tax identification number are 2451.

7 Capitalized terms not otherwise defined herein have the meanings given to them in the Motion.

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the legal and factual bases set forth in the Motion and at the Hearing establish just cause for the 

relief herein granted;

IT IS HEREBY ORDERED THAT:

1. The Motion is GRANTED.

2. Notwithstanding anything to the contrary in the FAO Action Procedures:

a. For any Person who has made the Pre-Complaint Mediation Election on or 

before August 20, 2021, the Trustee shall be permitted at any time, in her sole 

and absolute discretion, to (i) enter into a tolling agreement (each a “Tolling 

Agreement”) to extend on a case by case basis the Statutory Deadline, (ii) file 

a complaint (each a “Sealed Complaint”) with this Court using the sealed 

document docketing event in the ECF system pursuant to CM/ECF Policy 6 

(as revised effective December 1, 2019) or as otherwise instructed by the 

Court and/or (iii) for any Person that the Trustee perceives is an indispensable 

party to an existing complaint, add said Person to said complaint to the extent 

that said amendment is allowed under Rule 7015 (“Indispensable Party 

Amended Complaint”).

b. The Court shall not issue a summons for any Sealed Complaint.

c. For any matter involving a Sealed Complaint, within 14 days of the filing of a 

Mediator’s Report wherein the FAO Action has not settled, the Trustee shall 

seek, pursuant to procedures provided by the Court, to have (i) the Sealed 

Complaint’s seal protection removed such that the complaint is available for 

public view (each an “Unsealed Complaint”) and (ii) a summons issued.

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d. The summons issued for each Unsealed Complaint will be the Court’s 

standard form with the exception that it will inform the defendant that 

he/she/it has thirty days from the date of service of the summons (rather than 

the date of issuance) to respond to the Unsealed Complaint and the initial 

pretrial conference will be set for the next Omnibus Hearing that is at least 67 

days after the issuance of the summons. The mediation protocol found at 

section 3 of the FAO Action Procedures shall not apply to any Unsealed 

Complaint.

e. Sections 2A, 2D and 2E of the FAO Action Procedures shall not apply to any 

matter involving an Unsealed Complaint. 

f. Sections 2A, 2D, 2E, and 2G and sections 3A, 3B, 3I, 3J, and 3L of the FAO 

Action Procedures shall not apply to any matter involving an Indispensable 

Party Amended Complaint. To the extent a Person subject to an Indispensable 

Party Amended Complaint, who has not previously mediated pursuant to the 

FAO Order, desires to mediate, (i) said Person shall select a Mediator and (ii) 

the mediation shall proceed under sections 3C, 3D, 3E, 3F, 3G, 3H, and 3K, 

of the FAO Actions Procedures or as otherwise provided by the Court. 

g. For any matter involving a Sealed Complaint that is resolved during the 

Settlement Period, said complaint shall be dismissed as agreed by the parties 

and thereafter stricken from the Court’s docket pursuant to procedures

provided by the Court. 

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3. The Trustee is authorized to take all action necessary to effectuate the provisions 

of this Order, including but not limited to the execution and delivery of any Tolling Agreement. 

Any said Tolling Agreement shall be binding upon the parties thereto, and the Trustee may 

reasonably rely on the terms thereof. 

4. Except as expressly modified herein, the FAO Order shall remain in full force and 

effect. 

5. The Court shall retain exclusive jurisdiction to interpret and enforce the terms of 

this Order.

6. Upon entry, the Clerk shall serve a copy (by electronic delivery) of this Order on 

Paula S. Beran.

ENTERED:

UNITED STATES BANKRUPTCY JUDGE

I ask for this:

/s/

Paula S. Beran, Esquire (VSB No. 34679)

PBeran@TB-LawFirm.com

Tavenner & Beran, PLC

20 North 8th Street, Second Floor

Richmond, Virginia 23219

Telephone: (804) 783-8300

Facsimile: (804) 783-0178

Counsel for Lynn L. Tavenner, Chapter 7 Trustee

CERTIFICATION

I hereby certify that, pursuant to Local Rule 9022-1, the foregoing proposed Order has 

either been endorsed by and/or served upon all necessary parties.

Counsel

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Service List for Entered Order

Paula S. Beran, Esquire

Tavenner & Beran, PLC

20 North 8th Street, Second Floor

Richmond, Virginia 23219

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