On June 11, 2020, Weintraub Zolkin Talerico & Selth LLP, confirmed the Chapter 11 Plan of Reorganization (the “Plan”) of Dove Real Estate & Association Management LLC (“Dove”). Dove is a family-owned business that provides high-quality management services to thirty (30) homeowner’s associations (“HOA”). The company is well respected within the community and provides guidance and financial stability to HOAs throughout Orange County, including hundreds of homeowners.
Dove’s need for bankruptcy relief was triggered by costly litigation by a former and disgruntled client. Although the former client’s claims had no merit and absolutely no evidence of wrongdoing existed, Dove was forced to defend lengthy and expensive litigation. After three years of continuous litigation, Dove was exonerated of any wrongdoing, but a judgment for attorneys’ fees was entered against it. The judgment was in the amount of $357,000.
Dove retained Weintraub Zolkin Talerico & Selth LLP to settle the judgment with the former client. However, the former client refused to settle and instead continued its expensive litigation strategy, including unsuccessfully seeking to have Dove’s individual owner added to the judgment. After it became clear the former client’s goal was to put Dove out of business, Dove chose to file for Chapter 11 bankruptcy.
In the early stages of the bankruptcy case, the former client refused to settle. However, the creditor realized it had little leverage due to the bankruptcy filing and eventually agreed to settle on terms very favorable to Dove and its principal.
In its ruling to confirm Dove’s Plan, The Honorable Erithe Smith, Bankruptcy Judge, praised Weintraub Zolkin Talerico & Selth LLP’s exceptional work and awarded her “Gold Star” award stating, “The rare ‘Gold Star’ designation above signifies an exceptionally well-prepared pleading. The Gold Star pleading here is the Motion to Confirm Chapter 11 Plan (Confirmation Brief) and attachments thereto. Well done.” Through June 2020, Judge Smith has only designated three pleadings Gold Star awards.
Through Chapter 11 bankruptcy, Dove was able to confirm an affordable Plan, end years of expensive litigation, and significantly reduce its judgment to a reduced amount payable over time. Dove can now focus on operating and building its business. Contact our office today if we can answer any questions or concerns you may have.