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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

SHOREBANK, an Illinois banking

corporation, 

Plaintiff,

Case No. 2:09-cv-10646-VAR-MJH

v.

Hon. Victoria A. Roberts

ST. REGIS DETROIT PARTNERS, L.L.C.,

a Michigan limited liability company, WILCO

ASSOCIATES, L.L.C., a Michigan limited liability

company, HERBERT J. STRATHER, as Trustee of

the Herbert J. Strather Trust, u/a/d March 17, 1986,

as amended and restated, HERBERT J. STRATHER, 

individually, and SHIRLEY WILSON-JOHNSON,

individually, jointly and severally,

Defendants. 

_______________________________________________________________________/ 

Julie Beth Teicher (P34300)

David H. Freedman (P40567)

ERMAN, TEICHER, MILLER, 

ZUCKER & FREEDMAN, P.C.

Attorneys for Plaintiff

400 Galleria Officentre, Ste. 444

Southfield, MI 48034

Phone: 248-827-4100

Fax: 248-827-4106

jteicher@ermanteicher.com

dfreedman@ermanteicher.com

William C. Roush (P23444)

ISHBIA & GAGLEARD, P.C.

Attorneys for Defendants

251 E. Merrill St., Fl. 2

Birmingham, MI 48009

Phone: 248-647-8590

Fax: 248-647-8596

wcr@iglaw.com

Douglas C. Bernstein (P33833)

PLUNKETT COONEY

Attorney for Court Appointed Receiver

38505 Woodward Avenue, Ste. 2000

Bloomfield Hills, MI 48304

Phone: (248) 901-4000

Fax: (248) 901-4040

dbernstein@plunkettcooney.com

ORDER NAMING AND TRANSITIONING RECEIVERSHIP PROPERTY 

TO A SUCCESSOR RECEIVER AND FOR OTHER RELIEF

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THIS MATTER has come before the Court on the Stipulation of the parties for

entry of an Order Naming and Transitioning Receivership Property to a Successor

Receiver and for Other Relief. The Court finds good cause for entry of this Order and is

otherwise fully advised in the premises;

IT IS HEREBY ORDERED AS FOLLOWS:

1. Resignation of Original Receiver. Effective on the date of entry of this

Order, the Original Receiver is deemed to have resigned as the court-appointed receiver

over the Receivership Property and shall have no further right, power, authority,

possession or control over the Receivership Property. 

2. Appointment of Successor Receiver. Effective on, and from and after, the

date of entry of this Order (a) Custodial Real Estate, LLC, an Illinois limited liability

company, is appointed as the successor receiver over the Receivership Property (the

“Successor Receiver”) pursuant paragraph 19 of the Receivership Order which allows for

an appointment of a successor receiver by stipulated order, (b) the Successor Receiver

shall have immediate right, power, authority, possession and control over all the

Receivership Property, including, without limitation, all items set forth in paragraph 5 of

the Receivership Order, and (c) the Successor Receiver shall be bound by the

Receivership Order and all references in the Receivership Order to Receiver shall mean

the Successor Receiver. 

3. Transition. The Original Receiver and Alliance shall each cooperate in

good faith with the Successor Receiver, and its agents, representatives and employees,

and use their respective best efforts to ensure an orderly transition of the operations,

management and control of the Hotel from the Original Receiver and Alliance to the

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Successor Receiver, including, but not limited to, providing books and records,

responding to inquiries and providing all information and documentation that may be

necessary or required to ensure such an orderly transition.

4. Payment of Fees and Taxes. Prior to or simultaneous with the date of entry

of this Order, the Bank shall pay (a) the fees and expenses of the Receiver and the

Receiver’s counsel, (b) the sales and occupancy taxes relating to the operation of the

Hotel, including penalties and interest, and (c) certain obligations to Alliance, including

the payroll for the pay period ended October 24, which is payable on October 28, all

(with respect to 4(a)-(c)) as identified on Exhibit 1 to the Stipulation of the parties filed

concurrently with this Order which are true and accurate to the best of the Receiver’s

information and belief. 

5. Indemnification. For a period of two (2) years from and after the date of

entry of this Order, Bank shall indemnify and hold the Original Receiver and its officers,

partners, employees, agents, attorneys and representatives harmless from and against any

and all claims or actions made, alleged, asserted or brought against them in any way

arising from, in connection with or relating to the Receivership Order, the Receivership

Property or the Hotel, which were incurred or accrued from February 26, 2009 through

the date of entry of this Order only, including any personal and/or real property taxes

relating to the Receivership Property and the trade payables identified on Exhibit 2 to the

Stipulation which are true and accurate to the best of the Receiver’s information and

belief.

6. Non-Disparagement. Neither the Original Receiver, the Bank nor the

Successor Receiver, nor their respective officers, members, partners, employees, agents,

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attorneys and representatives, shall make, communicate and/or disseminate any

disparaging remarks about any one or more of the others, whether orally, in writing, by email, text, fax or otherwise. 

7. Bond. Promptly after the date of entry of this Order, the Original

Receiver shall file a final accounting for the period from February 26, 2009 through the

date of entry of this Order. Upon the filing of such final accounting, the bond of the

Original Receiver shall be cancelled. Promptly after the date of entry of this Order, the

Successor Receiver shall post a surety bond in this case in an amount not less than

$100,000 and file a notice of obtaining same with the Court. The cost of the bond for the

Successor Receiver is an expense of the Receivership.

 s/Robert H. Cleland in the absence of

Judge Victoria Roberts

ROBERT H. CLELAND

UNITED STATES DISTRICT JUDGE

Dated: November 5, 2009

I hereby certify that a copy of the foregoing document was mailed to counsel of record on

this date, November 5, 2009 by electronic and/or ordinary mail.

 s/Lisa Wagner 

 Case Manager and Deputy Clerk

(313) 234-5522

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