Barber Battles Shift to Court Clerk
by October 6, 2008 12:00 am 60 views
The saga of Brandon Barber’s bankruptcy continues.
On Oct. 1, Barber’s Lynnkohn LLC, which filed for Chapter 11 protection on Aug. 20 to stave off the scheduled foreclosure sale of the Legacy Building, sued Washington County Circuit Court clerk Bette Stamps.
Barber is demanding Stamps release $320,750 being held by the court from the sales proceeds of Legacy unit 501, which sold in June via the court-ordered receivership created in Legacy National Bank’s $18.7 million foreclosure proceeding against Lynnkohn.
Barber entered into a foreclosure decree on July 23 that found him, his wife Keri, and Seth and Laura Kaffka liable for the loans linked to the seven-story, 37-unit condo building.
On the eve of the Aug. 21 foreclosure sale, Barber filed bankruptcy and sued LNB and Flake & Kelley Commercial for $10 million in damages. He alleged that LNB conspired to halt condo sales that would have reduced his liability to the bank by telling F&K not to accept any offers until after the foreclosure sale.
Barber has since claimed to be the “debtor in possession” of the Legacy and attempted to hire his own real estate agent to market and sell the condos.
In his suit against Stamps, Barber argues through his latest attorney Stanley Bond (by our count at least the third different attorney he’s used in the last year) that he is the proper owner of the sale proceeds and that the funds are “essential to the continued operation of the Legacy Building.”
In arguing to dismiss the case, LNB has said Barber has neither the means nor ability to effectively maintain the property, which received utility shut-off notices this winter, had insurance lapse and was not protected by a security system.
Barber was arrested for DWI on Sept. 28 and was nearly extradited to Nevada before he paid off a delinquent $16,000 marker to a Las Vegas casino that was secured by Chambers Bank of North Arkansas, which is owned by his father-in-law John Ed Chambers.
He also owes more than $131,000 in property taxes for Lynnkohn’s various properties that are due Oct. 10.
The Bank of Fayetteville and First Federal Bank have field for relief from Barber’s bankruptcy filing
BOF, which received a foreclosure decree in its favor against Lynnkohn for just less than $1 million in debt for the Sloan Estates subdivision, has asked the court to allow it to take possession of the lots so that it may recoup its losses and sell the property.
First Federal holds a $795,328 claim against Lynnkohn for two properties at 205 and 207 Church St. in Fayetteville. Both banks would direct any proceeds of the sales above their claims to the bankruptcy trustee for repayment of other creditors.