Jay Adkisson

NC appeals court affirms charging order against Delaware LLC, ruling personal jurisdiction over the debtor suffices. Debtor-friendly formation state myths busted.

A recent bankruptcy court ruling in *Beaumier v. Raley* clarified creditor obligations regarding charging orders and automatic stays. Kathi Raley filed a charging order application against debtors' oil and gas payments before they filed for Chapter 7 bankruptcy. Antero Resources, the payor, withheld funds. After discharge, debtors sued Raley for violating the automatic stay and discharge injunction, as Antero continued withholding. The court ruled Raley did not violate either. It found that in West Virginia, a mere application for a charging order does not create a lien, thus imposing no duty on Raley to withdraw it post-petition or post-discharge. The automatic stay halts proceedings but doesn't compel creditors to undo pre-petition filings without operative effect. This contrasts with garnishments, where affirmative action is often required. The case highlights state-specific differences in charging order effects and advises creditors to seek court clarification to avoid risk.

Debunking the viral 3-layer asset protection plan for real estate investors: Why revocable trusts and LLCs offer flawed security against creditors.

Illinois court clarifies LLC charging orders: Entities have limited standing to object, and prior alter ego trust rulings can bind debtors via collateral estoppel.

Does a successful UPEPA motion prove a lawsuit is frivolous? Explore the interplay between Anti-SLAPP laws and Rule 11 sanctions in Hallums v. Alston.

Missouri Governor Mike Kehoe has signed the Uniform Public Expression Protection Act (UPEPA) into law, establishing a modern Anti-SLAPP measure. This legislation significantly enhances protections for free speech, safeguarding journalists, online critics, and those commenting on governmental affairs from abusive litigation. Unlike the previous limited statute, UPEPA provides broad coverage for constitutional speech rights. It allows for a "special motion" to quickly dismiss unmeritorious lawsuits, halting proceedings and awarding attorney fees to successful defendants. This new law, adopted by 15 other states, aims to deter attempts to silence free expression and resolve related disputes more efficiently, offering Missourians robust new protections.

A Hawaii appeals court affirmed the dismissal of a developer's lawsuit against homeowners, reinforcing Anti-SLAPP protections. Wayne and Tara Hu challenged RCA Trade Center's warehouses, arguing they violated agricultural zoning and permits, and caused environmental harm. The Hus' attorney sent a detailed letter to RCA and government agencies, leading the USDA to halt RCA's loan. RCA then sued the Hus. The Hus filed a special motion to dismiss under Hawaii's UPEPA, which was initially filed late but accepted by the trial court due to "good cause" related to insurance. Both the trial and appeals courts found the Hus's letter constituted protected speech on a matter of public concern. RCA's claims for declaratory relief, tortious interference, and injunction were deemed non-viable. The court upheld the dismissal and awarded attorney fees to the Hus, highlighting the importance of public participation in development issues.

In Burkhalter, a Georgia court granted a charging order on a Georgia LLC, holding that Florida marital property rules cannot defeat Georgia entity charging order remedies

In In re Kittrell, an AZ bankruptcy court applied 11 U.S.C. § 548(e)(1) to set aside transfers to a children's trust operated as a de facto self-settled trust.

Asset protection is the final line of defense, behind risk management, insurance, and litigation settlement. Focus first on risk and insurance.