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Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Feb 17 3:01 PM-22CV006720
0G279 - W5
IN THE COURT OF COMMON PLEAS
FRANKLIN COUNTY, OHIO
FRANKLIN COUNTY TREASURER, Case No. 22 CV 006720
Plaintiff,
v. Judge Karen Phipps
JRV SEPIRA, LLC, et al,
Defendants.
MOTION TO DISTRIBUTE EXCESS FUNDS TO MYRON N. TERLECKY,
CHAPTER 7 TRUSTEE
Now comes Myron N. Terlecky, Chapter 7 Trustee for Jose R. Villavicencio (the
“Trustee”), in the case pending in the United States Bankruptcy Court, Southern District of Ohio,
Eastern Division, captioned /n re Jose R. Villavicencio, Case No. 19-52861 (the “Bankruptcy
Case”), and hereby requests that this Court distribute the excess funds from the sale of the property
located at 637-639 South Wheatland Avenue, Columbus, OH 43204 to the Trustee, to the extent
of JRV SEPIRA, LLC’s (“JRV”) interest in such excess funds.
Jose R. Villavicencio (the “Debtor”) is the sole member of JRV, which operates as his self-
directed individual retirement account. As more fully set forth in the January 13, 2022 Opinion
and Order sustaining the Trustee’s objections to certain exemptions (attached hereto as Exhibit A),
the Debtor’s interest in JRV and all of its assets are nonexempt assets of the bankruptcy estate. On
January 27, 2023, the United States District Court for the Southern District of Ohio affirmed the
Bankruptcy Court’s decision. The Opinion and Order of the District Court is attached hereto as
Exhibit B.!
| A notice of appeal of this decision was filed on February 15, 2023
Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Feb 17 3:01 PM-22CV006720
0G279 - wed
As a nonexempt asset owned solely by the Debtor, the Trustee controls 100% of JRV and
all of its assets—including its interest in the excess funds in this matter.
[U]pon the filing of the Debtor’s bankruptcy petition, his membership interest in TI
Properties became property of his bankruptcy estate notwithstanding the attempt by
the Tennessee Revised Act to prevent that result. The Debtor’s membership interest
included both financial rights and governance rights. Upon the appointment of the
Trustee, the right to exercise the governance rights for the benefit of the estate
passed to the Trustee. Because TI Properties is a member-managed LLC, upon the
appointment of the Trustee, the right to manage the LLC passed to the Trustee
This conclusion is consistent with the reported decisions concerned with
governance of a single-member limited liability company when the sole
member files a bankruptcy petition.
Inre Thomas, 2020 Bankr. LEXIS 1364, *28 (Bankr. W.D. Tenn. May 7, 2020) (listing cases).
While the Trustee does not oppose the sale of the property in this matter, the Trustee
requests that JRV’s interest in the proceeds from the sale, as determined by this Court, be
distributed to the Trustee and not to the Debtor, the sole member of JRV. Throughout the
Bankruptcy Case, the Debtor has refused to cooperate with the Trustee and has engaged in a series
of misconduct that has made it difficult for the Trustee to administer the bankruptcy estate
Accordingly, the Trustee respectfully requests that this Court not permit the Debtor to access the
excess funds from the sale of the property, and instead distribute such funds to the Trustee or, if
this Court cannot determine the proper holder of the funds, hold the funds until such time as this
Court has determined the proper holder of the funds.
Respectfully submitted,
/s/ Loni R. Sammons
Myron N. Terlecky (0018628)
John W. Kennedy (0042672)
Loni R. Sammons (0102196)
Strip, Hoppers, Leithart, McGrath & Terlecky Co., LPA
575 South Third Street
Columbus, OH 43215
Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Feb 17 3:01 PM-22CV006720
0G279 - Wel
T: (614) 228-6345 F: (614) 228-6369
Email: mnt@columbuslawyer.net
jwk@columbusla er.net
Irs@columbusla er.net
Attorneys for Myron N. Terlecky, Chapter 7
CERTIFICATE OF SERVICE
The undersigned hereby certifies that on February 17, 2023 a true and accurate copy of the
foregoing Motion to Distribute Excess Funds to Myron N. Terlecky, Chapter 7 Trustee was
submitted to the Court electronically and served on the registered eFiling participants
electronically through the court’s eFiling system at the email address registered with the court.
/s/ Loni R. Sammons
Loni R. Sammons (0102196)
Cl Beall Cina 2Bbib CIDBOLOSutt: 's dFilael Canteen Pledsa BNZFOb/1B201 PMI~AVoodDeSc
0G279 - W6 PDF Page 1 of 18
Exhibit A
This document has been electronically entered in the records of the United
States Bankruptcy Court for the Southern District of Ohio.
Vf fi
IT IS SO ORDERED.
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Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Feb 17 3:01 PM-22CV006720 0G279 - W5 IN THE COURT OF COMMON PLEAS FRANKLIN COUNTY, OHIO FRANKLIN COUNTY TREASURER, Case No. 22 CV 006720 Plaintiff, v. Judge Karen Phipps JRV SEPIRA, LLC, et al, Defendants. MOTION TO DISTRIBUTE EXCESS FUNDS TO MYRON N. TERLECKY, CHAPTER 7 TRUSTEE Now comes Myron N. Terlecky, Chapter 7 Trustee for Jose R. Villavicencio (the “Trustee”), in the case pending in the United States Bankruptcy Court, Southern District of Ohio, Eastern Division, captioned /n re Jose R. Villavicencio, Case No. 19-52861 (the “Bankruptcy Case”), and hereby requests that this Court distribute the excess funds from the sale of the property located at 637-639 South Wheatland Avenue, Columbus, OH 43204 to the Trustee, to the extent of JRV SEPIRA, LLC’s (“JRV”) interest in such excess funds. Jose R. Villavicencio (the “Debtor”) is the sole member of JRV, which operates as his self- directed individual retirement account. As more fully set forth in the January 13, 2022 Opinion and Order sustaining the Trustee’s objections to certain exemptions (attached hereto as Exhibit A), the Debtor’s interest in JRV and all of its assets are nonexempt assets of the bankruptcy estate. On January 27, 2023, the United States District Court for the Southern District of Ohio affirmed the Bankruptcy Court’s decision. The Opinion and Order of the District Court is attached hereto as Exhibit B.! | A notice of appeal of this decision was filed on February 15, 2023 Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Feb 17 3:01 PM-22CV006720 0G279 - wed As a nonexempt asset owned solely by the Debtor, the Trustee controls 100% of JRV and all of its assets—including its interest in the excess funds in this matter. [U]pon the filing of the Debtor’s bankruptcy petition, his membership interest in TI Properties became property of his bankruptcy estate notwithstanding the attempt by the Tennessee Revised Act to prevent that result. The Debtor’s membership interest included both financial rights and governance rights. Upon the appointment of the Trustee, the right to exercise the governance rights for the benefit of the estate passed to the Trustee. Because TI Properties is a member-managed LLC, upon the appointment of the Trustee, the right to manage the LLC passed to the Trustee This conclusion is consistent with the reported decisions concerned with governance of a single-member limited liability company when the sole member files a bankruptcy petition. Inre Thomas, 2020 Bankr. LEXIS 1364, *28 (Bankr. W.D. Tenn. May 7, 2020) (listing cases). While the Trustee does not oppose the sale of the property in this matter, the Trustee requests that JRV’s interest in the proceeds from the sale, as determined by this Court, be distributed to the Trustee and not to the Debtor, the sole member of JRV. Throughout the Bankruptcy Case, the Debtor has refused to cooperate with the Trustee and has engaged in a series of misconduct that has made it difficult for the Trustee to administer the bankruptcy estate Accordingly, the Trustee respectfully requests that this Court not permit the Debtor to access the excess funds from the sale of the property, and instead distribute such funds to the Trustee or, if this Court cannot determine the proper holder of the funds, hold the funds until such time as this Court has determined the proper holder of the funds. Respectfully submitted, /s/ Loni R. Sammons Myron N. Terlecky (0018628) John W. Kennedy (0042672) Loni R. Sammons (0102196) Strip, Hoppers, Leithart, McGrath & Terlecky Co., LPA 575 South Third Street Columbus, OH 43215 Franklin County Ohio Clerk of Courts of the Common Pleas- 2023 Feb 17 3:01 PM-22CV006720 0G279 - Wel T: (614) 228-6345 F: (614) 228-6369 Email: mnt@columbuslawyer.net jwk@columbusla er.net Irs@columbusla er.net Attorneys for Myron N. Terlecky, Chapter 7 CERTIFICATE OF SERVICE The undersigned hereby certifies that on February 17, 2023 a true and accurate copy of the foregoing Motion to Distribute Excess Funds to Myron N. Terlecky, Chapter 7 Trustee was submitted to the Court electronically and served on the registered eFiling participants electronically through the court’s eFiling system at the email address registered with the court. /s/ Loni R. Sammons Loni R. Sammons (0102196) Cl Beall Cina 2Bbib CIDBOLOSutt: 's dFilael Canteen Pledsa BNZFOb/1B201 PMI~AVoodDeSc 0G279 - W6 PDF Page 1 of 18 Exhibit A This document has been electronically entered in the records of the United States Bankruptcy Court for the Southern District of Ohio. Vf fi IT IS SO ORDERED.