Metallic Blue Development LLC
Opinion
Trial Court Opinion
I. Background
On November 28, 2022, various petitioning creditors filed an involuntary Chapter 7 petition against Metallic Blue Development LLC (the “Debtor”).4 The Court entered an Order for Relief on February 1, 2023.5 The Court denied the Debtor’s motion to vacate the Order for Relief on March 17, 2023.6 On July 17, 2023, the Debtor’s appeal of the order declining to vacate the Order for Relief was dismissed without prejudice for failure to prosecute.7 On April 18, 2023, the Debtor received from the state of Washington a subpoena seeking business records pursuant to an investigation commenced by the Securities Division of the Washington State Department of Financial Institutions. The Debtor takes the position that its sole member, William Ho (“Ho”) and its sole manager, Brian Dozier (“Dozier”) both resigned, effective as of May 10, 2023.8 Movants seek to conduct the requested Rule 2004 examination of the Debtor by issuing subpoenas compelling the testimony of Ho and Dozier. Movants sent several “meet and confer” e-mails to the Debtor’s counsel in an attempt to obtain a stipulated order authorizing the requested Rule 2004 examination. In declining to stipulate to an…