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

David N. Tabakin, Esquire (Va. Bar No. 82709)

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,119-34574-KRH

Debtor Chapter

7

TRUSTEE’S MOTION FOR AN ORDER ESTABLISHING

PROCEDURES REGARDING THE PROSECUTION OF ACTIONS

INVOLVING FORMER ATTORNEYS AND CERTAIN OTHERS

AND MEMORANDUM IN SUPPORT THEREOF

Lynn L. Tavenner, Trustee, and 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”) hereby by and through her undersigned counsel, pursuant 

to §§ 102(1), 105, 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 authorizing and approving procedures 

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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by which the Trustee, on behalf of the Estate, may prosecute and settle, or otherwise resolve, 

disputes related to causes of actionsinvolving 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. By this 

Motion, the Trustee seeks procedures that will: 1) serve judicial economy; 2) allow the Trustee, to 

the greatest extent allowed by law, consider any and all defenses, as well as mitigating 

circumstances, brought to her attention in connection with her prosecution of the FAO Actions (as 

defined below); 3) speed the time within which the matters will be resolved; and 4) reduce 

unnecessary litigation costs for the parties. 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 

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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 

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. On January 30, 2020, the Trustee, through counsel, sought to employ the law firm 

of Foley & Lardner LLP (“Foley”) as her special counsel, and filed her Application to Employ 

Foley & Lardner LLP as Special Counsel (the “Foley Employment Application”), ECF No. 330. 

The Foley Employment Application was approved by this Court in the Order Authorizing the 

Retention and Employment of Foley & Lardner LLP as Special Counsel (the “Foley Employment 

Order”). ECF No. 342.

8. After the Trustee, with the assistance of Foley and her other professionals, began 

review of (i) the Debtor’s books, records, and other financial information; (ii) the Debtor’s 

Statement of Financial Affairs, ECF No. 211; and (iii) certain transfers made by LeClairRyan 

between the Petition Date and the Conversion Date, she sought entry of an order approving 

procedures for matters against Persons2other than (a) former attorneys of LeClairRyan and/or 

entities to which any transitioned, (b) Persons receiving transfers for the benefit of former attorneys 

of LeClairRyan and/or entities to which any transitioned, (c) ULX Partners, LLC, (d) Persons 

receiving transfers for the benefit of ULX Partners, LLC, (e) UnitedLex Corporation, (f) Persons 

receiving transfers for the benefit of UnitedLex Corporation, and/or (g) insurance companies 

2 As that term is defined in 11 U.S.C. § 101(4)

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providing fiduciary or similar coverage to LeClairRyan and/or any of its former attorneys. See

Motion for an Order Establishing Procedures Regarding the Prosecution of Avoidance Actions 

Involving Persons Other Than Former Attorneys and Certain Others and Memorandum in Support 

Thereof, ECF No. 343. And this Court entered an order, Order Approving Procedures and 

Permitting Trustee to Prosecute and Compromise NFA Avoidance Actions ECF No. 385,

approving certain procedures (the “NFA Adversary Proceeding Procedures”). Thereafter, the 

Trustee sought the return of certain payments and is preparing to commence numerous avoidance

actions to recover preference transfers, post-petition transfers, and other (or the same) transfers 

avoidable under other theories under the Bankruptcy Code and other applicable law (collectively 

the “NFA Avoidance Actions” and individually, each an “NFA Avoidance Action”).

9. In addition to the NFA Avoidance Actions customarily brought in bankruptcy 

cases, the Trustee is also investigating potential avoidance actions and other causes of action that 

are unique, in certain instances, to insolvent law firms, and she is investigating causes of action 

related to the operations of LeClairRyan before the Petition Date. Thus, the procedures proposed 

herein are for matters involving (a) former attorneys of LeClairRyan and/or entities to which any 

transitioned, (b) Persons receiving transfers for the benefit of former attorneys of LeClairRyan

and/or entities to which any transitioned, (c) ULX Partners, (d) Persons receiving transfers for the 

benefit of ULX Partners, (e) UnitedLex Corporation, (f) Persons receiving transfers for the benefit 

of UnitedLex Corporation, and/or (g) Persons, including insurance companies providing fiduciary 

or similar services to LeClairRyan and/or any of its former attorneys.3 Accordingly, actions 

involved in this Motion shall be referred to as “FAO Actions.”

3 Notwithstanding the foregoing, nothing herein prevents the Trustee from seeking approval from the Court to carve 

out additional individuals and/or entities from this paragraph that otherwise would be included herein.

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10. The Trustee is eager and willing to resolve as many of the FAO Actions as possible 

without proceeding to full or extensive litigation. Although the Trustee expects that some of the 

FAO Actions can be resolved and settled without the need for extensive litigation, it is impossible 

to predict how many of the lawsuits will ultimately be settled without trial. Accordingly, the 

Trustee seeks the implementation of the proposed procedures set forth below to hopefully ease the 

burden on the Court and the parties and to facilitate and maximize the potential for a fair resolution 

of the FAO Actions without the need for protracted litigation.

RELIEF REQUESTED

11. The Trustee, through her professionals, is in the process of (a) investigating FAO 

Actions, (b) preparing demand letters to recover amounts involved in the FAO Actions, and (c) 

preparing complaints on behalf of the Estate to recover amounts involved in the FAO Actions

pursuant to, among others, §§ 547, 548, 549 and 550 of the Bankruptcy Code and/or to otherwise 

seek recovery under other applicable law.

12. By this Motion, the Trustee is seeking approval of a process whereby the Estate can 

prosecute, settle, or otherwise resolve FAO Actions. The Trustee requests approval of the 

following process and procedures to reduce the burden on the parties and Court, minimize cost 

and expense, and enhance her ability to collect amounts and maximize the recovery for the Estate.

PROPOSED PROCEDURES

13. The Trustee respectfully requests that the Court adopt and implement the 

following procedures (the “FAO Action Procedures”), which shall apply to (a) FAO Demand 

Letters (as defined below) and (b) adversary proceedings involving the FAO Actions (the “FAO

Adversary Proceedings” and each an “FAO Adversary Proceeding”) unless the Court orders 

otherwise for good cause shown and where circumstances warrant:

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1. Demand Protocol:

A. Demand Letter: The Trustee will send a demand letter (the “FAO

Demand Letter”) to each potential defendant (“FAO Defendant”).

B. Consent to Mediation: Within 14 days of the date of the FAO Demand 

Letter, the FAO Defendant may elect to proceed to the Mediation Process 

provided for in Section 3 herein (the “Pre-Complaint Mediation 

Election”) by written request to Paula S. Beran at pberan@tb-lawfirm.com

. If the FAO Defendant makes a Pre-Complaint Mediation Election, the 

Trustee will not file a complaint against said defendant until after the filing 

of the Mediator’s Report (as hereafter defined)(unless otherwise resolved).

Absent the timely Pre-Complaint Mediation Election and/or a consummated 

settlement within 30 days of the date of the FAO Demand Letter, unless 

otherwise agreed, the Trustee will proceed to file a complaint against the 

FAO Defendant.

2. The Litigation Protocol:

A. Case-Specific Summons. The summons issued for each FAO Adversary 

Proceeding will vary from the Court’s standard form and will be an 

“Answer Only” summons. The summons 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 complaint. The summons will 

not set a pretrial conference date; any pretrial or other scheduling 

conference will be set only after the completion of the mediation procedures 

described below unless otherwise ordered by the Court.

B. Extension of Time by Which Trustee must Serve the Summons. The time 

period under Bankruptcy Rule 7004(e), by which the Trustee must serve the 

summonses and complaints in the FAO Adversary Proceedings on 

defendants in the United States shall be extended by thirty (30) days, 

without prejudice to the Trustee to seek further extensions of time for cause 

shown.

C. Stipulation to Extend Time for Defendants to Respond to the Complaint. 

Without further order of the Court, the parties may stipulate to one extension 

of the time of no more than sixty (60) days within which a defendant must 

respond to a complaint. The stipulation must be in writing to be binding on 

the Trustee but can be documented via email. Any further or longer 

extensions of time will require Court approval.

D. Stay of Requirement to Conduct Scheduling Conference. Federal Rule of 

Civil Procedure 26(f), made applicable to the FAO Adversary Proceedings 

pursuant to Bankruptcy Rule 7026 (mandatory meeting before scheduling 

conference/discovery plan), shall be stayed with respect to the FAO

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Adversary Proceedings during the Settlement Period (as hereafter defined).

Upon the filing of the Mediator’s Report (as described below) with respect 

to each FAO Adversary Proceeding that is not resolved through the 

Mediation Process (as described below) or otherwise and before the pretrial 

conference hereafter described, the parties shall conduct a Rule 26(f) 

conference, discussing discovery issues, estimated length of trial, and 

available trial dates.

E. Stay of Discovery and Settlement Period. The one hundred and twenty (120) 

day period commencing with the filing of the Complaint (the “Settlement 

Period”) shall be used by the Trustee to pursue settlement of the claims and 

commence mediation (if required as set forth below). Unless otherwise 

ordered by the Court, the parties’ obligations to conduct formal discovery 

in each FAO Adversary Proceeding shall be stayed during the Settlement 

Period, provided that the stay of discovery shall in no way preclude the 

parties from informally exchanging documents and information in an 

attempt to resolve an FAO Adversary Proceeding.

F. Initial Disclosures. Initial disclosures shall be made as indicated in the 

Pretrial Scheduling Conference or as otherwise provided in order of the 

Court.

G. Pretrial Scheduling Conferences/Motion Hearing Dates. The Court will 

schedule dates in the Bankruptcy Case, on which dates any post-mediation 

pretrial scheduling conferences in the FAO Adversary Proceedings will take 

place. Any pretrial motions filed by the parties in the FAO Adversary 

Proceedings must be set for hearing after the filing of the Mediator’s Report 

or unless otherwise ordered by the Court.

H. Motions affecting all FAO Adversary Proceedings. Any motions filed by 

the Trustee that affect all of the FAO Adversary Proceedings may and 

should be filed in the Bankruptcy Case, and not in each separately docketed 

FAO Adversary Proceeding, provided, however, that each defendant shall 

receive notice of the filing of the same.

I. Notice of these Special Procedures. A copy of the FAO Action Procedures 

will be served on each defendant with the FAO Demand Letter and/or 

summons and complaint in each FAO Adversary Proceeding.

3. The Mediation Protocol:

A. Mediation Process. Mediation will be required in all FAO Adversary 

Proceedings seeking recovery in excess of $25,000. In FAO Actions

seeking recovery of less than $25,000, the parties may jointly agree to 

participate in the mediation process outlined below, but if mediation is not 

agreed to, the parties shall (a) conduct a Rule 26(f) conference and submit 

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an agreed discovery scheduling order or proposed scheduling orders (which 

shall be substantively similar to pretrial orders used by this Court in a 

majority of its other adversary proceedings) to the Court promptly at the 

conclusion of the Settlement Period, and the Trustee shall set the FAO

Adversary Proceeding down for a Pretrial Scheduling Conference or (b) 

proceed as required by the applicable rules of the Court in which the action 

was commenced if said action was not commenced in this Court.

B. Within sixty (60) days after (i) the FAO Defendant has filed a response to 

the complaint or (ii) the Pre-Complaint Mediation Election, the parties must 

have commenced the mediation process by (a) either (i) having selected a 

mutually agreeable mediator from the Court approved list of mediators 

attached to the Court-ordered procedures as Exhibit A4; or (ii) the FAO

Defendant having obtained on order from this Court authorizing the 

utilization of a bankruptcy judge from the Eastern District of Virginia 

willing and able to serve as a mediator (the “Judicial Mediator”); (b) 

having executed a mediation agreement, and (c) having scheduled a date for 

the mediation. If any FAO Defendant does not timely select a mediator, then 

the Trustee shall promptly (1) assign a mediator to the FAO Adversary 

Proceeding and (2) so notify the defendant. Each mediator selected by this 

process shall hereafter be referred to as the “Mediator.”

C. At least ten (10) days prior to the scheduled mediation, the parties shall 

exchange position statements and submit the statements to the Mediator, 

unless otherwise agreed by the parties and/or the Mediator. Unless agreed 

in writing by both parties and/or the Mediator, the position statements shall 

not exceed five (5) pages double-spaced (exclusive of exhibits and 

schedules). The Mediator may also require the parties to provide to the 

Mediator any relevant papers, exhibits, and a settlement proposal.

D. Unless otherwise agreed to by the Trustee or Judicial Mediator, the 

Mediation shall take place in Richmond, Virginia. The Mediator’s fees shall 

be split equally by the parties, and payment arrangements satisfactory to the 

Mediator must be completed prior to the commencement of the mediation.

E. The Mediator will preside over the mediation with full authority to 

determine the nature and order of the parties’ presentations. The Mediator 

may implement additional procedures which are reasonable and practical 

under the circumstances.

F. The parties will participate in the mediation, as scheduled, and presided over 

by the Mediator, in good faith and with a view toward reaching a consensual 

resolution. At least one counsel for each party and a representative of each 

4 The Trustee will submit a list of proposed mediators and each mediator’s proposed compensation structure for the 

Court’s review no later than two (2) business days prior to the hearing on this Motion.

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party having full settlement authority shall attend the mediation in person; 

provided, however, that a Mediator, in his or her discretion, may allow a 

party representative to appear telephonically.

G. The length of time necessary to effectively complete the mediation will be 

within the Mediator’s discretion. The Mediator may also adjourn a 

mediation that has been commenced if the Mediator determines that an 

adjournment is in the best interests of the parties.

H. All proceedings and writings incident to the mediation will be considered 

privileged and confidential and shall not be reported or admitted in evidence 

for any reason whatsoever. Nothing stated or exchanged during a mediation 

shall operate as an admission of liability, wrongdoing, or responsibility.

I. Unless otherwise extended by order of this Court, the mediation must be 

concluded no later than 120 days after the (1) date on which the defendant 

has filed his/her/its response to the complaint or (2) the date of the PreComplaint Mediation Election.

J. If a party fails to (a) execute a mediation agreement, (b) submit the required 

submissions as provided in these Mediation Procedures or as may be agreed 

to by the Mediator or ordered by the Court, and/or (c) attend the mediation 

as required, then the non-defaulting party may file a motion for default 

judgment or a motion to dismiss the FAO Adversary Proceeding.

K. Within ten (10) days after the conclusion of the mediation, the Mediator will 

file a report, drafted with the caption of the FAO Adversary Proceeding, 

which need only state (a) the date that the mediation took place, (b) the 

names of the parties and counsel that appeared at the mediation, and (c) 

whether or not the applicable FAO Adversary Proceeding settled (the 

“Mediator’s Report”).

L. If an FAO Adversary Proceeding or matter subject to FAO Demand Letter 

has not settled as indicated in the Mediator’s Report, then the Trustee must, 

as appropriate, file with the Court, and serve on the defendant, (1) a notice 

of Pretrial Scheduling Conference to take place at a hearing with a minimum 

of fourteen (14) days’ notice or (2) a complaint initiating an FAO Adversary 

Proceeding which FAO Adversary Proceeding shall not be subject to the 

Mediation requirements provided herein.

4. Settlement

A. The Trustee shall have the authority to settle any FAO Action in an amount 

less than or equal to $25,000.00 upon terms and conditions the Trustee 

determines to be in the best interests of the Estate, without the need for any 

further notice, hearing or order of this Court.

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B. For all FAO Actions in an amount greater than $25,000.00 (any such, a 

“Large FAO Action”), the Trustee shall have the authority to settle, 

without the need for further notice, hearing or order of this Court, if the 

settlement amount is at least 70 percent of the claim.

C. To the extent the Trustee desires to settle a Large FAO Action under terms 

less favorable than the provisions of paragraph 4(B) (a “Proposed FAO

Settlement”), the Trustee will serve a notice of the Proposed FAO

Settlement (the “Settlement Notice”) by first class mail and/or electronic 

delivery on the Office of the United States Trustee and any other party who 

makes a written request to Paula S. Beran, Esquire at Tavenner & Beran, 

PLC, 20 North Eighth Street, Second Floor, Richmond, Virginia 23219 

(collectively, the “Interested Parties” and each an “Interested Party”).

D. The Settlement Notice will include the following information regarding the 

Proposed FAO Settlement:

i. The amount of the FAO Action and/or FAO Demand Letter;

ii. The name of the FAO Action defendant involved in the Large FAO Action;

iii. The terms of the Proposed FAO Settlement; and

iv. Any asserted defenses raised in the Large FAO Action.

E. Instructions consistent with the procedures set forth below regarding 

potential objections to the Proposed FAO Settlement.

F. Interested Parties will have fifteen (15) days (the “Notice Period”) to object 

to the Proposed FAO Settlement pursuant to the objection procedures 

herein. If no objections are properly filed prior to the expiration of the 

Notice Period, the Trustee will be authorized, without further notice and 

without further Court approval, to consummate the Proposed FAO 

Settlement.

G. In addition, the Trustee may consummate a Proposed FAO Settlement prior 

to expiration of the applicable Notice Period if the Trustee obtains each 

Interested Party’s written consent to the Proposed FAO Settlement. The 

matter will thereafter be settled as agreed by the parties.

H. Any objection(s) to a Proposed FAO Settlement must (a) be in writing, (b) 

state with specificity the ground for objection, (c) be served on the 

Interested Parties and counsel to the Trustee so as to be received prior to the 

expiration of the Notice Period, and (d) be filed with the Court prior to the 

expiration of the Notice Period. If an objection to a Proposed FAO

Settlement is properly filed and served, then the Proposed FAO Settlement 

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may not proceed absent (a) withdrawal of the objection or (b) entry of an 

Order of the Court specifically approving the Proposed FAO Settlement. 

The objecting party and the Trustee shall attempt to resolve the objection 

on a consensual basis. If the parties are unable to reach a resolution of the 

objection, the Court will consider the Proposed FAO Settlement at a hearing 

as permitted by the Court. Within ten days prior to any such hearing, the 

objecting party or the Trustee, by counsel, shall notify the Court, the 

Interested Parties and, as applicable, counsel for the Trustee of its intent to 

ask the Court to resolve the objection at such hearing.

I. All settlements shall be documented pursuant to an agreement substantially 

in the same form as Exhibit B5attached hereto.

J. On or before the fifteenth day of July, October, January, and April, the 

Trustee shall file a report with the Court and serve on the Interested Parties, 

describing the final disposition of all FAO Actions settled in the previous 

calendar quarter, beginning in October 2020.

Legal Authority

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

Bankruptcy Code §§ 105 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 

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 

5 A copy of said form of settlement agreement will be filed with the Court on or before two (2) business days prior to 

the hearing on this Motion.

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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.

15. The Trustee respectfully requests that the Court adopt and implement the FAO 

Action Procedures, which shall apply to FAO Adversary Proceedings and matters involving a PreComplaint Mediation Election unless the Court orders otherwise.

16. Given the volume of anticipated FAO Adversary Proceedings, the Trustee believes 

a general order governing pretrial conferences, discovery, and motions practice is prudent. Absent 

such an order, the Court’s docket will be unnecessarily burdened with pretrial conferences and 

additional time will be required to review and approve individual case scheduling orders. Further, 

the relief requested herein will aid the Trustee’s efforts to reduce expenses and maximize value 

for the benefit of creditors and other parties in interest by reducing the paperwork requirements 

and the number of hearings, as well as prompting resolution without the time and expense of formal 

discovery and litigation to trial through a mediation program. The procedures will also reduce the 

burden on the Clerk’s office and the Court's docket while protecting the interests of all defendants.

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17. The settlement procedures described herein satisfy due process requirements.

Settlements may be approved without an actual hearing if no party in interest timely requests an 

actual hearing. 11 U.S.C. § 102(1)(B)(i). Due process is satisfied if parties are given “an 

opportunity to present their objections.” Mullane v. Cent. Hanover Bank & Trust Co., 339 U.S. 

306, 314 (1950) (citations omitted). The Trustee is providing notice simultaneously with the filing 

of this Motion upon all known, potential defendants in the FAO Actions.

18. Bankruptcy Rule 9019(b) provides as follows:

(b) Authority to Compromise of Settle Controversies Within Classes. After a 

hearing on such notice as the court may direct, the court may fix a class or classes 

of controversies and authorize the trustee to compromise or settle controversies 

within such class or classes without further hearing or notice.

19. The purpose of this rule is to provide a simplified procedure when numerous 

settlements are involved. In such a situation, “forcing the trustee to file a new motion each time a 

settlement is reached would be onerous, expensive, and burdensome.” 10 Collier on Bankruptcy ¶ 

9019.03, at 9019-5 (16th Ed.). Similar relief was granted as follows: Order Approving Procedures 

and Permitting Trustee to Prosecute and Compromise NFA Avoidance Actions ECF No. 385;

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. 

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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; Order Granting Motion to Approve, In re Va. Pac. Forrest Corp., Case 

No. 03-32842 (Bankr. E.D. Va. Oct. 29, 2004), ECF No. 70 (Tice, J.); and Order Granting Motion 

for Trustee to Establish Procedures for Prosecution and Resolution of Preference Claims, In re 

Open Plan Sys., Case No 02-64657 (Bankr. E.D. Va. July 15, 2003), ECF No. 197 (Tice, J.). The 

recommended procedures will not be set in stone in that individual deviations from the procedures 

will be permitted for good cause shown and where circumstances warrant.

NOTICE

20. 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) Persons6 who the Trustee is 

currently investigating to determine if said Person benefited from a transfer involving a FAO 

Action whose address the Trustee has been able to locate in the Debtor’s books and records; (c) 

the Core Parties and 2002 List as defined in the Order Establishing Certain Notice, Case 

Management, and Administrative Procedures, ECF No. 38; and (d) all parties that properly filed a 

request for notice of papers in this case pursuant to Bankruptcy Rule 2002. The Trustee submits 

that no other or further notice need be given.

21. The Trustee believes that service of this Motion and application of the procedures 

described herein will provide all interested parties with due process by providing (a) ample notice, 

6 Receipt of said notice does not mean said Person has been identified as a defendant; rather, the Trustee is 

investigating facts related to transactions that may have included said Person, and she will, after the completion 

of said investigation, make demand where appropriate.

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(b) an opportunity to receive notice of all Proposed FAO Settlements, and (c) an opportunity to 

present objections and request a hearing.

NO PRIOR RELIEF

22. 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 C: (i) authorizing the Trustee, on behalf of the Estate, to 

pursue FAO Actions in accordance with procedures outlined herein, (ii) authorizing the Trustee, 

on behalf of the Estate, to resolve the FAO Actions in accordance with the procedures outline 

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

Respectfully submitted,

LYNN L. TAVENNER, CHAPTER 7 TRUSTEE

Dated: May 14, 2020

Richmond, Virginia

By: /s/ Paula S. Beran

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

PBeran@TB-LawFirm.com

David N. Tabakin, Esquire (VSB No. 82709)

DTabakin@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

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16

CERTIFICATE OF SERVICE

I hereby certify that on the 14th day of May, 2020, a true and correct copy of the foregoing 

Trustee’s Motion for an Order Establishing Procedures Regarding the Prosecution of Avoidance 

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; and (c) all parties 

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

/s/ Paula S. Beran

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

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Exhibit C

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

David N. Tabakin, Esquire (Va. Bar No. 82709)

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,119-34574-KRH

Debtor Chapter

7

ORDER APPROVING PROCEDURES AND PERMITTING

TRUSTEE TO PROSECUTE AND COMPROMISE FAO ACTIONS

This matter coming before the Court on the Trustee’s Motion for an Order Establishing 

Procedures Regarding the Prosecution of Avoidance Actions Involving Former Attorneys and 

Certain Others and Memorandum in Support Thereof (the “Motion”)2filed 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 abovecaptioned 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 

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.

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

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2

(and service of the proposed order) was sufficient under the circumstances; and the Court having 

determined that 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. The Trustee is authorized to pursue and settle the FAO Actions as set forth in the 

Motion.

3. The FAO Action Procedures are hereby approved and incorporated herein.

4. No term of the Motion or this Order shall prohibit the Trustee from seeking specific 

Court approval that the procedures shall not apply to any individual defendant.

5. No term of the Motion or this Order shall prohibit the Trustee from seeking specific 

Court approval, pursuant to Bankruptcy Rule 9019, of the settlement of any FAO Action.

5. 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

David N. Tabakin, Esquire (VSB No. 82709)

DTabakin@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

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3

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

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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