______________________________________

Kathryn R. Montgomery, AUST (VSB No. 42380)

Shannon Pecoraro, Esq. (VSB No. 46864)

Jason B. Shorter, Esq. (VSB No. 80929)

Office of the United States Trustee

701 East Broad Street, Suite 4304

Richmond, VA 23219

Telephone: (804) 771-2310

Facsimile: (704) 771-2330

IN THE UNITED STATES BANKRUPTCY COURT 

FOR THE EASTERN DISTRICT OF VIRGINIA

Richmond Division

In re:

LECLAIRRYAN PLLC, 

Debtor.

Lynn L. Tavenner, as Chapter 7 Trustee, 

 Plaintiff.

v. 

ULX Partners, LLC, UnitedLex Corporation, 

and ULX Managers, LLC,

 Defendants.

Lynn L. Tavenner, as Chapter 7 Trustee, 

 Plaintiff.

v. 

CVC Capital Partners, Daniel Reed, Nicholas 

Hinton, Josh Rosenfeld, P. Douglas Benson, 

 Defendants.

Chapter 7

 Case No. 19-34574 (KRH)

 Adv. Proc. Nos. 20-03142 (KRH) 

 and 

 

 21-03095 (KRH)

OBJECTION OF THE UNITED STATES TRUSTEE TO TRUSTEE’S MOTION AND 

MEMORANDUM OF LAW FOR ENTRY OF AN ORDER (I) APPROVING (A) 

JUDICIALLY MEDIATED SETTLEMENT AND (B) COMPENSATION TO COUNSEL 

INCLUDING AN IMPROVIDENT PAYMENT UNDER SECTION 328(A); AND (II) 

GRANTING RELATED RELIEF FILED UNDER SEAL AT DOCKET NUMBER 211

John P. Fitzgerald, III, Acting United States Trustee for Region Four (the “United States 

Trustee”), by and through the undersigned counsel, files this Objection to the Chapter 7 Trustee’s 

Motion and Memorandum of Law for Entry of an Order (I) Approving (A) Judicially Mediated 

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Settlement and (B) Compensation to Counsel Including and Improvident Payment Under Section 

328(A); and (II) Granting Related Relief filed under seal at docket number 211 (the “Sealed 

Motion”). In support hereof, the United States Trustee respectfully states as follows: 

1. On April 19, 2022, at a hearing before this Court, counsel for the Chapter 7 Trustee 

set forth on the record terms of a settlement agreement reached by the parties.

2. On May 11, 2022, Defendants filed a Motion to Seal Settlement Agreement and 

Related Documents, Information and Hearings (“Motion to Seal”). (Dkt. 207).

3. On May 23, 2022, the United States Trustee filed his Opposition to the Motion to 

Seal.

4. A hearing on the Motion to Seal has been set before this Court on May 25, 2022. 

(Dkt. 208).

5. On May 18, 2022, the Chapter 7 Trustee filed the Sealed Motion. (Dkt. 211). 

6. The Sealed Motion was filed without evidentiary support; however, footnote 14 of the 

Sealed Motion provides that the Chapter 7 Trustee anticipates filing declaration(s) at 

the appropriate time to sufficient enable the Bankruptcy Court to, among other things, 

perform its gatekeeping role in connection with determining the reasonableness of the 

Improvident Payment. (Dkt. 211).

7. The Notice of the Sealed Motion indicates that the Sealed Motion is set to be heard by 

this Court on June 8, 2022, and that objections are due on June 1, 2022. (Dkt. 212).

8. The United States Trustee does not believe that the relief sought in the Sealed Motion 

fully complies with the Bankruptcy Code.

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9. The United States Trustee requires discovery to assess the evidentiary support for 

some of the relief sought in the Sealed Motion.

10. On May 23, 2022, the United States Trustee propounded discovery to the Chapter 7 

Trustee in the form of Interrogatories and Requests for Production.

11. The United States Trustee intends to supplement this Objection. Accordingly, the 

United States Trustee reserves the right to supplement this Objection.

Respectfully Submitted,

Dated: May 23, 2022 JOHN P. FITZGERALD, III

Acting United States Trustee Region 4

By: /s/ Kathryn R. Montgomery

Kathryn R. Montgomery (VSB 42380)

Assistant United States Trustee

Office of the United States Trustee

701 E. Broad St., Ste. 4304 

Richmond, VA 23219

Ph: (804) 771-2310

Fax: (804) 771-2330

Kathryn.Montgomery@usdoj.gov

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CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on this 23rd day of May, 2022, a true and correct copy of the 

foregoing document was served via first class mail and/or electronic mail upon: (i) all parties and 

counsel requesting service via the Court’s ECF system, (ii) the Defendants, (iii) the 20 largest 

unsecured creditors as listed on the Debtor’s schedules, (iv) the Service List as defined by the 

governing Case Management Order, (v) Foley & Lardner, (vi) all Persons identified in paragraph 

4 of the FAO Procedures Order, and (vii) counsel for the Chapter 7 Trustee. 

By: /s/ Kathryn R. Montgomery

Kathryn R. Montgomery, Esq. 

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