Order Michigan Supreme Court
Lansing, Michigan
January 31, 2006 Clifford W. Taylor,
Chief Justice
130108 Michael F. Cavanagh
Elizabeth A. Weaver
Marilyn Kelly
ANTONIO L. THOMAS and ANTONIO Maura D. Corrigan
L. THOMAS ASSOCIATED, Robert P. Young, Jr.
Plaintiffs-Appellants, Stephen J. Markman,
Justices
v SC: 130108
COA: 266779
Wayne CC: 02-220633-CZ
LA-VAN HAWKINS and
URBAN CITY FOODS, LLC,
Defendants-Appellees,
and
MELVIN BUTCH HOLLOWELL,
Receiver-Appellee.
_________________________________________/
On December 21, 2005, this Court issued an order granting a stay of trial court
proceedings in this case and directing that the proceeds of the sale of the Sweet Georgia
Brown restaurant not be distributed during the pendency of the stay. On order of the
Court, the application for leave to appeal the December 2, 2005 order of the Court of
Appeals is again considered and, pursuant to MCR 7.302(G)(1), in lieu of granting leave
to appeal, we REMAND this case to the Wayne Circuit Court for further proceedings. At
a November 18, 2005 hearing, Judge Sapala stated that “I’m satisfied that the conflict of
interest does not exist, this other receiver is to be dissolved.” We DIRECT the circuit
court to reconsider whether Melvin Butch Hollowell had a conflict of interest and to
make specific findings addressing the following issues:
(1) whether receiver Hollowell had or has any professional
relationships with La-Van Hawkins, Mr. Hawkins’ ex-wife, Wendy
Hawkins, any of the individuals comprising the group or association that
purchased the Sweet Georgia Brown restaurant on November 15, 2005, or
the Sweet Georgia Brown restaurant, and if so, the parameters and duration
of that professional relationship;
2
(2) whether receiver Hollowell had or has any personal relationships
with LaVan Hawkins, Mr. Hawkins’ ex-wife, Wendy Hawkins, or any of
the individuals comprising the group or association that purchased the
Sweet Georgia Brown restaurant on November 15, 2005, and if so, the
parameters and duration of that personal relationship;
(3) whether, if such existing or former personal or professional
relationships are found, there would naturally be a tendency on Hollowell’s
part to take actions, as a receiver, in other than a completely disinterested
manner, see Sellars v Lamb, 303 Mich 604, 610-611 (1942), and if so,
whether Hollowell should be disqualified from serving as receiver;
(4) whether Hollowell disclosed information regarding bids and the
sale of the restaurant he negotiated to his co-receiver, Bryan D. Marcus,
during the period that Marcus served as co-receiver, and if not, whether
such non-disclosure was justified;
(5) whether Hollowell disclosed information regarding bids and the
sale of the restaurant he negotiated to creditors of La-Van Hawkins to the
extent such disclosure was appropriate;
(6) whether the sale Hollowell negotiated was the result of an arms-
length and even-handed competitive bidding process;
(7) how many bids were submitted and how many bidders
participated in the bidding process; and
(8) whether the $1.5 million sale price Hallowell negotiated fairly
represents the value of the restaurant.
The Wayne Circuit Court may conduct additional proceedings or evidentiary
hearings, if necessary, and is DIRECTED to submit its findings of fact and conclusions of
law to this Court within thirty-five days of the date of this order. The stay imposed by
this Court’s order of December 21, 2005 is MODIFIED to allow continued tax payments
to the State Treasurer’s office during the pendency of the stay. The application for leave
to appeal the December 2, 2005 order of the Court of Appeals remains under
consideration.
We retain jurisdiction.
I, Corbin R. Davis, Clerk of the Michigan Supreme Court, certify that the
foregoing is a true and complete copy of the order entered at the direction of the Court.
January 31, 2006 _________________________________________
s0125 Clerk