In re Johnson
Opinion
Lead Opinion
MEMORANDUM OF DECISION CONVERTING CASE TO CHAPTER 7 UPON TRUSTEE’S MOTION FOR CONDITIONAL DISMISSAL OF CASE (Dkt. # 556)
Jeffrey Golden (the “Trustee”), as trustee of the chapter 11 estate of Robert Vilas Johnson and Linda Joyce Johnson (the “Debtors”), moves for entry of an order conditionally dismissing this chapter 11 case and allowing professional fees and expenses. (For ease of reference, most numbers below are approximate.)
Service: appears to be in order. 21-days’ notice given to all creditors and parties on the Court’s NEF list.
Background:
Mr. Johnson owned and operated (in part) IS West, an internet service provider. In February 2011, the California Superior Court entered a substantial judgment against Mr. Johnson and IS West in favor of Kenneth Cleveland and William Biekley (the “Judgment Creditors”) relating to, among other things, a breach of contract. Shortly thereafter, Drew Kaplan (Mr. Johnson’s business partner) commenced an arbitration proceeding against Mr. Johnson seeking damages arising out of Mr. Johnson’s purported misconduct in his dealings with the Judgment Creditors.
On July 18, 2011, the Debtors filed for chapter 11 relief. After two failed attempts…