SCM NEWS & OPINIONS

Court Approves Claims Procedure in Receivership of Westwood Partners and Westwood Hills Investments, LTD

On May 14, 2021, the Third Judicial District Court, State of Utah, County of Salt Lake (the “Court”), entered an order (the “Procedure Order”) in the long-standing receivership case of Westwood Partners and Westwood Hills Investments, Ltd (collectively, the “Partnerships”), which receivership case is known as Billings v. Westwood Hills Investments, Ltd., et al., Civil No. 890900969 (the “Receivership Action”).  The Receiver of the Partnerships, William O. Martineau (the “Receiver”), is represented by Snow Christensen & Martineau.  A copy of the Procedure Order may be downloaded here.

Money may become available for payment to creditors and owners of the Partnerships, from liquidation of assets of the Partnerships (the “Receivership Property”).  The Procedure Order approves the procedures and rules for claimants to present Claims if they believe they are entitled to payment from Partnership Assets.

The Procedure Order also approves the “Notice of Assets and Deadline to File Claim Form” (the “Claims Notice”), which sets forth the instructions and deadline for claimants to present claims to the Court and the Receiver.  A copy of the Claims Notice may be downloaded here.

The Procedure Order also approves the “Claim for Receivership Assets” (the “Claim Form”)–the form that claimants must use to present claims.  A copy of the Claim Form may be downloaded here.

If you believe you are entitled to a portion of the Receivership Property, you may file a claim (“Claim”) with the Court, using the Claim Form.  If you file a Claim, the following rules apply:

    1. You must use the Claim Form;
    2. The Claim Form must be properly completed and, to be considered, must:
      1. State the name, street address, mailing address (if different from the street address), email address, and telephone number of the claimant;
      2. State the amount and basis of the Claim;
      3. State the date on which the Claim arose;
      4. State whether the Claim is in the Equity Class or Debt Class, as defined in the Court’s “Order Establishing Classes of Claimants and Allocating the Right to Assert Claims to Receivership Assets Among Such Classes,” entered in the Receivership Action on March 3, 1997 (the “Class Order”). A copy of the Class Order may be downloaded here.  (The Class Order provides, essentially, that the creditors of the Partnerships are divided into two classes: the “Debt Class”, comprised of creditors who loaned money to the Partnerships, and the “Equity Class,” comprised of investors who were limited partners or who otherwise obtained an ownership interest of some kind in the Partnerships);
      5. Be signed by the claimant, under penalty of perjury; and
      6. Attach a copy of any records or documents on which the claim is based.
    3. Claim Forms, with supporting documentation, must be filed with the Court (450 S. State Street, Salt Lake City, UT 84111), so as to be received by the
      Court no later than 5:00 p.m., prevailing Mountain Time, on September 24, 2021 (the “Claims Deadline”).
      Claims may be mailed to the Court or filed in person in the Court Clerk’s office, at the same address.
    4. A copy of the Claim Form and supporting documentation must also be emailed and mailed to counsel for the Receiver, at the
      following address, so as to be received (the mailed copy) by the Claims Deadline:

David L. Pinkston, Attorney for the Receiver
SNOW, CHRISTENSEN & MARTINEAU
10 Exchange Place, Eleventh Floor
Post Office Box 45000
Salt Lake City, Utah 84145
dlp@scmlaw.com

  1. CLAIMS THAT ARE NOT FILED AND RECEIVED BY COUNSEL FOR THE RECEIVER BEFORE THE CLAIMS DEADLINE MAY NOT BE CONSIDERED BY THE RECEIVER. IF NOT CONSIDERED, SUCH CLAIMS WILL BE DISALLOWED AND RECEIVE NO DISTRIBUTION OF RECEIVERSHIP ASSETS.
    LIKEWISE, CLAIMS THAT FAIL TO INCLUDE ALL REQUIRED ELEMENTS ABOVE, INCLUDING SUPPORTING DOCUMENTATION, MAY NOT BE CONSIDERED.  IF YOU FAIL TO TIMELY FILE A
    COMPLETE CLAIM FORM, AS DESCRIBED, ANY CLAIM YOU MAY HAVE AGAINST THE PARTNERSHIPS, OR EITHER OF THEM, AGAINST THE RECEIVERSHIP PROPERTY, OR AGAINST THE RECEIVER,
    WILL BE WAIVED, FOREVER BARRED, AND DISCHARGED.

YOUR LEGAL RIGHTS MAY BE AFFECTED.  PLEASE CONSULT YOUR OWN ATTORNEY.

 

If you have any questions about the Claims process, you may contact David Pinkston, counsel for the Receiver, at 801-322-9180 or by email, dlp@scmlaw.com