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 RESPONSE TO MOTION FOR 

LIMITED RELIEF FROM THE AUTOMATIC STAY

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 “Case”) 

hereby files this response (the “Response”) to the Motion for Limited Relief from the Automatic 

Stay (the “Motion for Relief”), ECF No. 287, filed by Petersburg Regency LLC (“PRL”) and 

Robert Harmon (“Harmon” and together with PRL, “Movants”) and, in support thereof, states as 

follows:

Background

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

Chapter 11 of Title 11 of the United States Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy 

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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Code”). Pursuant to §§ 1007 and 1108 of the Bankruptcy Code, the Debtor operated as a debtorin-possession.

2. 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. Per agreement between the Debtor, 

the United States Trustee, and ABL Alliance, LLLP, the Debtor’s Case was converted to a case 

under Chapter 7 of the Bankruptcy Code on October 4, 2019.

3. 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.

4. On November 19, 2019, PRL filed proof of claim 20 (the “Proof of Claim”) in the 

amount of “$28,000,000.00+.” (the “Claim Amount”) See Claim 20. The purported basis of the 

Proof of Claim is the Petersburg Lawsuit (as defined in the Motion for Relief).

5. On November 21, 2019, the Movants filed their Motion for Relief. On November 

22, 2019, Movants filed their Corrected Statement Motion for Limited Relief from the Automatic 

Stay (with the Motion for Relief, the “Motion for Relief”).

6. In the Motion for Relief, Movants seek “relief for the sole purpose of permitting 

the Plaintiffs in the Petersburg Lawsuit to reduce those claims to either settlement or judgment, 

and then to permit the Plaintiffs to seek recovery of those amounts from any applicable insurance 

coverage the Debtor may have.” Motion for Relief at ⁋ 12.

Response

7. The Trustee does not object to the relief sought in the Motion for Relief provided 

the same does not impact the Estate or property thereof. In other instances, the Trustee has 

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consented to relief from the automatic stay provided that (i) the relief sought would require no 

significant expense from the Estate and (ii) movant agreed to reasonable language in a consent 

order addressing the Trustee’s concerns related to the same. 

8. In this instance, paragraphs 4 and 5 of the proposed Order Granting Motion for 

Limited Relief from the Automatic Stay (the “Proposed Order”), ECF No. 287-1, attached to the 

Motion for Relief provide as follows:

4. Notwithstanding anything to the contrary herein or in the Motion, (a) the 

relief granted herein shall not alter, impair, and/or otherwise impact property of the 

Estate; (b) the Estate shall not be required to incur any significant additional costs 

or expenses as it relates to the relief granted herein; and (c) neither the Trustee nor 

the Estate shall have any future obligation of any sort with respect to the settlement 

of the Petersburg Litigation absent further order of this Court.

5. In the event the Plaintiffs are unable to recover the full amount they are 

owed as a result of the resolution of the claims asserted in the Petersburg Litigation 

from sources other than property of the Estate, and to the extent the Plaintiffs desire 

to pursue additional amounts from the Estate, the Plaintiffs shall pursue any such 

claims only in accordance with the claims procedures established in this case for 

general unsecured creditors.

9. Unfortunately, the language at paragraph 5 is problematic in this instance given the 

large size of the Claim Amount asserted in the Proof of Claim. Said amount could significantly 

impact potential distributions to other creditors in the Bankruptcy Case. Accordingly, if Movants

desire to retain the Proof of Claim and seek recovery from the Estate, the Proof of Claim is more 

appropriately addressed under this Court’s jurisdiction through the claims allowance process, and 

the Motion for Relief should be denied.

WHEREFORE, the Trustee respectfully requests the that Court not grant the relief 

requested in the Motion for Relief. 

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Respectfully submitted,

LYNN L. TAVENNER, CHAPTER 7 TRUSTEE

Dated: January 23, 2020

Richmond, Virginia

By: /s/ David N. Tabakin

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

CERTIFICATE OF SERVICE

I hereby certify that on this 23rd day of January 2020, a true copy of the foregoing Trustee’s 

Response was sent by electronic delivery to:

Shannon F. Pecoraro, Esquire

Office of the United States Trustee

701 East Broad Street, Room 4304

Richmond, Virginia 23219

MICHAEL WILSON PLC

Michael G. Wilson, Esquire

PO Box 6330

Glen Allen, VA 23058

mike@mgwilsonlaw.com

Counsel to Movants

/s/ David N. Tabakin

David N. Tabakin, Esquire

Counsel for Lynn L. Tavenner, Chapter 7 Trustee

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