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Debtor Chapter 11
counsel, hereby moves the Court for an award of damages against Creditor Columbus
Consolidated Government, d/b/a City of Columbus (“City”) for misconduct and violation of the
automatic stay and Section 366 of the Bankruptcy Code and alleges the following:
Background
2. The Debtor’s estate consists of real estate located in the City of Columbus, Georgia
which was used as a mobile home park commonly referred to as Fort Benning Park.
which was contemporaneously filed in the Middle District of Florida and which
4. In the affiliate case, the Debtor’s estate also consists of real estate located in
Columbus, Georgia which was used as a mobile home park commonly referred to as
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5. Both mobile home parks are located near a military base in an area where affordable
housing is scarce, and Debtor had a waiting list of prospective tenants for the units.
6. The bankruptcy filing was precipitated by actions involving the City and its affiliated
7. The City was duly listed as a creditor Columbus Consolidated Government (“City”)
8. Prior to the filing of the bankruptcy cases, throughout 2018 the Debtor had invested
over $250,000 into the mobile parks for renovations and code issues.
9. On September 24, 2019, upon application through this Court, Dean A. Kent was
employed as special counsel to pursue eminent domain claims against the City on
10. On October 25, 2019, the Debtor filed a Motion for Extension to file its Plan and
Disclosure because special counsel was needing more time to investigate the cause of
action and file an adversary proceeding, as the Debtor’s Plan of Reorganization had
11. On or about November 14, 2019, Debtor learned that the City demolished all 140
mobile home units and completely destroyed the Fort Benning Park.
12. Upon further investigation, Debtor discovered that the City had, apparently sometime
13. Both demolitions were conducted without any prior notice to Debtor, yet with great
public ado by the City in a series of news releases and even a press conference touting
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the $55,000,000 planned highway project which is strongly suspected to be the real
reason why the City has forcibly taken the Debtor’s property.
14. The City’s actions were not an exception under Section 362(b)(4) as the mobile home
units posed no imminent threat to the health, safety or welfare of the community and
in fact they would have provided sorely needed affordable housing for its residents.
15. City’s actions have caused extensive financial damages to the Debtor’s estate,
specifically:
a. The mobile home units have been demolished and will need to be rebuilt;
c. City has further impaired the Debtor’s ability to restructure the assets by making a
series of public announcements stating that the land will be used for a new
highway, and thus making it more difficult for Debtor to market the property for
16. To add insult to injury, the City is even threatening to collect from Debtor the costs
that it incurred in demolishing the Debtor’s property, and has claimed to place a post-
petition lien against the Debtor’s property to force repayment of the cost.
Argument
17. City’s actions are improper and a violation of Section 362 of the Bankruptcy Code.
18. Section 362 stays actions against the property of the bankruptcy estate. Specifically,
19. At all times relevant herein, City was enjoined by the automatic stay from interfering
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20. The filing of a petition bankruptcy effectuates automatic of all proceedings against
Debtor effective the date the petition is filed and actions taken in violation of stay are
void, even if there is no actual notice of the stay. (Personalized Air Conditioning,
Inc.v. C.M. Systems of Pinellas, 522 So.2d. 465 Fla.App. 4 Dist, 1988). Here, the
creditor.
21. A willful violation of the automatic stay occurs when the creditor knew that the stay
had been invoked and deliberately intended the action that violated the stay (In re
22. Section 362 provides that the court shall award costs and attorney’s fees, in
23. The Debtor’s damages are obviously extensive and irreparable in that due to City’s
absolute destruction of the mobile home park, it cannot resume business operations
24. Punitive damages are certainly appropriate in a situation like this in which the City
had notice of the automatic stay and yet it brazenly, with public fanfare, destroyed the
WHEREFORE Debtor seeks an order finding City in violation of the automatic stay and
damages should be awarded to the Debtor, including but not limited to the actual amount of
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CERTIFICATE OF SERVICE
I HEREBY CERTIFY that on this 18th day of November, 2019, a true and correct copy of the
foregoing was sent by CM/ECF Electronic mail to all parties of interest on the Court’s CM/ECF
Columbus Consolidated Government, c/o City Attorney Clifton Fay, 100 10th Street, 6th Floor,
Columbus, Georgia, 31902; and to Thomas Gristina, Esq., Page Scrantom Sprouse Tucker Ford,
Respectfully submitted,