More Of The Same

Having failed in their motion to dismiss, the defendants filed a motion for a jury trial in an obvious attempt to further delay a bench trial. When that also failed to yield the desirable results, the defendants filed yet another motion for an adjournment based on their failure to complete their discovery within the scheduled time frame. The trustee acquiesced and the court granted the motion by rescheduling to the end of March for a final pre-trial hearing. On March 13, 2009, the attorney for the defendants filed yet another "letter" in support of their memorandum in support of their motion to dismiss. How ridiculous! Basically, their claim is that after four years of occupying creditor HMH's property without payment, there was no foul, no harm. This is all the more outrageous if they are permitted to continue bleeding the estate in this manner. On March 17, 2009 the trustee sent a letter to the court answering all of the issues raised in the defendant's letter of March 13, 2009. And still, on March 18, 2009 HH&F have yet, another bite at the apple with another letter to the court. The court made a ruling on September 25th, 2008 and the defendants are still arguing against that ruling. They have become so desensitised to arguing both sides of the same coin that they no longer know where the truth lies...nor do they care!

Not only have the defendants been permitted to continue their campaign of the six D's, (Distract, Divert, Delay, Deny, Deplete, Default) but they have also been successful in gaining adjournments that were not sanctioned by the court in the related case against the religious corporation, Kollel Mateh Efraim. (case # 07-02052) When a motion for an adjournment failed in that case, they had their attorney, Isaac Nutovic file a motion to be removed based on their failure to pay his fees. This is not the first time that they have successfully employed this tactic. The same attorney, Isaac Nutovic filed the very same motion in July of 2008, only to be rescinded upon a purported settlement of his fees. He was also successful in that incidence of effectively gaining a previously declined motion for adjournment. At a hearing held on February 3, 2009, in the very samecase # 07-02052 Judge Bernstein ordered that Kollel Mateh Efraim must be represented by counsel, and that with the withdrawal of Isaac Nutovic for non-payment, Kolel Mateh Efraim must find new counsel by March 12, or be ruled in default. On March 12, 2009, Isaac Nutovic not only re-enters the case on behalf of debtor Kolel Mateh Efraim, but he re-files a motion for a jury trial. This is, of course, a red herring since a jury trial would not only fully expose all of their illegal activities, but would likely result in punitive damages. However, it serves as yet another delaying tactic. HMH (The Griffins) fail to understand why the court is permitting such a disgusting abuse of the judicial system, and also just how this entire dynamic is working toward the best fiduciary interests of the chapter 7 bankruptcy estate.

On May 28th, Judge Bernstein rendered an opinion that the alter ego/declaratory motion is an issue where the debtor has demanded a jury trial, and the trustee's motion to strike such demand is denied. Although the opinion seems to support the fact that the debtor IS the religious corporation since the Employer Identification Number 11-2831693 utilized by the debtor does in fact belong to the religious corporation, it is difficult for us to understand why this factual issue needs to proceed to a jury trial, and thus incur the additional expense. (Or...is that the point!)