Monday, January 18, 2010

Evans update: Trustee seeks to "liquidate" all claims made in state court. Earnings reviewed.

For a collection of all Evans posts, please see sidebar on right side of page. Synopsis of case is at the bottom of the post.

Trustee seeks to cancel all actions in state court
Bankruptcy Trustee Derek Henderson and Mississippi Valley Title traded blows over the weekend. Mr. Henderson filed a complaint in U.S. Bankruptcy Court in the Evans case against Mississippi Valley Title and all of the banks in the Evans case. The trustee asked the court to nullify any actions taken in state courts that determined who the true lien-holders of each tract of Evans-owned property were and "liquidate" the claims of each defendant that has "asserted" a claim "relating to each tract."

There have been quite a few actions filed in the Madison and Desoto county chancery courts seeking rulings on which lenders have the first lien on each property. Most of the lawsuits filed were submitted by attorneys Gene Barry and Todd Burwell (of Robbie Bell fame) that are typically associated with Mississippi Valley Title. Over twenty actions seeking declaratory relief have been filed in Madison County alone.

Mississippi Valley Title must have met with its lawyers over the weekend because a response was filed yesterday. Copy of response MVT asked the Court to "permit" Mr. Henderson to "execute" the conveyances already ordered by state courts. Copy of Complaint

Impact of Evans case on Earnings
JJ reviewed the 2009 second quarter, 2009 third quarter, and 2008 annual statement for Mississippi Valley Title as well as the 2009 third quarter earnings statement for its parent, Old Republic. It should be remembered MVT stated in the bankruptcy court that claims of $41 million were submitted to it by policyholders in the Evans case.

The earnings statements reveal the following:
1. MVT had claims reserves of $35,380,452 as of September 30. (P.4, Known and Statutory Claims reserves were combined.) 3rd Quarter Earnings Statement
2. MVT had claims reserves of $35,657,424 at the end of 2008. Apparently Mississippi Valley Title did nothing to shore up its claims reserves in the same quarter it became aware of its potential liability due to the Evans case. 2008 annual statement, (2nd quarter was $34,314,931, 2nd Quarter Earnings Statement
3. Old Republic has over $14 billion in assets as of September 30. 3rd Quarter Earnings
Statement
4. Old Republic's Title Insurance Division reported:

  • Pretax operating income of $4 million in the third quarter.
  • a $9.7 million loss in the third quarter last year.
  • a profit of $600,000 for the entire year
  • a $27 million loss for the first three quarters of 2008.
Thus Old Republic's Title Insurance Division finally earned a profit in the third quarter after losing some money for some time. This is important as Old Republic is hemorrhaging badly in its mortgage insurance division: $160 million loss in the third quarter, $443 million loss in the first three quarters of 2009, and a loss of $415 in the first three quarters of 2008.

Old Republic reported an overall loss of $46 million for the third quarter and $116 million for the year ending September 30. That was an improvement as on September 30, 2008, Old Republic reported a loss of $431 million for the year.

If Mississippi Valley Title/Old Republic thus paid the $41 million in claims it stated in court filings were submitted by policyholders, the insurance company would probably see its entire profits for the title insurance division effectively wiped out although it would come out of the claims reserves. The question still remains: will Old Republic pay claims out of its own reserves, pay them first out of MVT's, or will it play hardball and fight every claim as it is doing with Britton & Koontz? The question thus must also be asked what the future of Mississippi Valley Title will be at Old Republic if the insurer pays $41 million in claims. One can imagine the insurer re-examining the um, nature of that relationship.

Synopsis of Evans case (This feature will be included with future posts on Evans case): Charles Evans, Jr. was an attorney approved by Mississippi Valley Title Insurance Company to provide title certificates to MVT and lenders showing a borrower had clear title to property. MVT filed a lawsuit in September accusing his brother of using over 30 LLC's to obtain fraudulent loans from over 30 banks in Mississippi. Chris Evans would allegedly use one company to purchase a large tract of prime commercial real estate in Madison and Desoto Counties. Another company owned by Evans would obtain a commercial real estate mortgage on a smaller section of the tract yet that borrowing company never obtained a deed showing ownership of the land from the other company. Thus the smaller tract was actually non-existed as the larger tract was never actually subdivided. Charles would allegedly provide a title certificate however showing the borrowing company owned the land even though it didn't.

Over 80 loans for nearly $50 million were issued by Mississippi banks to companies owned by Chris Evans for lands those companies either did not own. MVT has testified federal authorities are currently investigating the case. Chris Evans filed Chapter 7 bankruptcy on October 26, which stopped the Mississippi Valley Title's lawsuit against him as federal bankruptcy law stays most state civil court proceedings once a bankruptcy petition is filed.
Mississippi Valley Title testified 65 title insurance claims for approximately $41 million have been filed by banks affected by the Evans case.

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Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
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