Little Rock developer Philip Herrington recently filed a Chapter 11 reorganization for one of his developments in Oklahoma City.
The twist in this case is that Herrington is acting as the attorney for Gaillardia Brownstones I LLC in its bankruptcy proceeding.
Herrington isn’t an attorney but is the managing member of Gaillardia Development Co., which is the managing member of the LLC. His legal moves quickly drew an objection from Acting U.S. Trustee Daniel Casamatta.
He pointed out that an individual had the right to represent himself in court. “However, the statute does not permit an unlicensed layman to represent anyone else other than themselves,” Casamatta said in the motion to dismiss. “Therefore, a layperson may not represent a corporation, limited liability company or partnership even if that person is the sole stockholder, member or partner.”
Casamatta wanted the case dismissed. A hearing is scheduled for Tuesday in U.S. Bankruptcy Court in Little Rock in front of Judge Richard D. Taylor.
Herrington didn’t immediately return messages for comment Thursday. But in the initial filings for Gaillardia Brownstones, Herrington listed the unsecured claims at $1.1 million. The total estimated debts are listed at between $1 million and $10 million, the same range as the estimated assets.
As you know, Herrington also has a personal Chapter 11 bankruptcy pending. In March, Herrington, who is represented by attorney Kevin P. Keech of Little Rock, filed for Chapter 11 and listed $13.45 million in debts and only $5.1 million in assets.
Casamatta has asked that that case be converted from reorganization to Chapter 7 liquidation. A hearing on Casamatta’s motion is set for Oct. 4 in U.S. Bankruptcy Court in Little Rock in front of Judge Ben Barry.