News & Events

November 6, 2017

Associate Brianna Frazier was elected to the Board of Directors of the Boys & Girls Clubs of Capistrano Valley on October 26, 2017. The Boys & Girls Clubs of Capistrano Valley has dedicated youth facilities in Aliso Viejo, Rancho Santa Margarita, and San Juan Capistrano that are staffed by full-time youth development professionals and serve, on average, over 400 children per day.


October 4, 2017

Ninth Circuit Upholds Non-Dischargeable Judgement Obtained by the Firm

James C. Bastian, Jr. and Melissa Lowe successfully defended an appeal to the Ninth Circuit Court of Appeals by the debtor on a judgment against the debtor for non-dischargeability of a debt. On October 4, 2017, the Ninth Circuit Court of Appeals entered its judgment affirming the Ninth Circuit Bankruptcy Appellate Panel's decision to uphold the Bankruptcy Court's summary judgment in our client's favor, meaning the debt it is owed is non-dischargeable under Bankruptcy Code Section 523.


September 25, 2017

Managing Partner, Len Shulman, was elected President of the Monarch Bay Land Association on Sept. 23rd. The MBLA assists the 123 leaseholder residents in Monarch Bay with the process of exercising their option to purchase their respective land purchases, which options are required to be exercised by 12/31/2020. All told, the transaction will involve upwards of $250,000,000.


September 17, 2017

WHY RESIDENTS ARE WORRIED ABOUT SALE OF ALTAVITA VILLAGE, A RIVERSIDE RETIREMENT COMMUNITY - Click attached for FULL ARTICLE


August 29, 2017

SHB Cares for Houston

With family, friends and first responders living in the greater Houston area, SHB wants to do its part to assist those in need as a result of Hurricane Harvey. SHB has chosen the Greater Houston Community Foundation wherein Houston Mayor Turner established the Hurricane Harvey Relief Fund https://ghcf.org/ (Tax ID 23-7160400) and the Austin Pets Alive https://www.austinpetsalive.org/hurricane-harvey-evacuations/ (Tax ID 68-0480736) as its target beneficiaries. Food and necessities provided by GHCF are desperately needed and there are hundreds if not thousands of animals that are now homeless. SHB's goal is to raise $50,000.00 in the aggregate for these two excellent charities. To kick things off, SHB pledges $5000 to each charity. Please go on to either or both of the websites to donate and please send us a copy of the email receipt so we can track our progress. Just think about how you will be spending your Labor day weekend compared to those in the great Houston area. Please help us help them.

Leonard M. Shulman


July 23, 2017

Complimentary Business Organization and Law Presentation – Click attached for more info


February 23, 2017

The Firm's Managing Partner, Len Shulman, was named to the Emeritus Board of the Pediatric Cancer Research Foundation. Len was a Board member for approximately 10 years and served at President of such for 2 of those years. Click here to learn more.


This year, the Firm will be assembling a team for the upcoming Reaching for the Cure Half Marathon, 10K, 5K, Kids Run benefiting Pediatric Cancer Research Foundation March 26, 2017 which will be held at Irvine Valley College. JOIN OUR TEAM!!! Also, if you enter SHB2017 in the code box you will get 15% off your registration fee. The 5k walk starts at 9:30 a.m. We will also have a booth at the event and team shirts. Click on link to join the Firm's team. This event offers something for everyone from bike tour to various run and walk events, each in a variety of distances.

Pediatric cancer is an area of research that is severely underfunded by the NIH. It is up to private donors and companies to advance the mission of improving the care, quality of life and survival rates of children with malignant disease. We need your support so please do anything you can - join our team, register as an individual or make a donation on our Firm's behalf. The goal is to have one of the largest teams and raise amongst those teams the most money. The employee at SHB who raises the most money in support of our team will receive a $500 AE Gift Card.

Thank you so much for all of your support and I personally look forward to seeing you at Reaching for the Cure Run!


When Don Yee, a noted sport agent and attorney whose clients include Tom Brady, was exploring the idea of a new professional football league, he reached out to Jim Bastian, his friend of nearly 30 years, to discuss the opportunity. That discussion led to Don's engagement of Shulman Hodges & Bastian LLP to provide legal services related to the creation of Pacific Pro Football. The launch of Pacific Pro Football was widely publicized and reported by numerous news outlets including ESPN, the Wall Street Journal and New York Times. The league aims to provide an alternative to college football for players less than four years removed from high school. For more information please consult Pacific Pro Football 's web site at http://www.pacprofootball.com . For more information on Shulman Hodges & Bastian LLP please visit our website at www.shbllp.com


Shulman Hodges & Bastian LLP is proud to announce that Kiara W. Gebhart , a Partner in its litigation department, has been re-elected to the Board of Directors of the Federal Bar Association of Orange County ("FBAOC")

The FBAOC is an organization committed to meeting the needs of federal practitioners in Orange County by sponsoring important "Bench and Bar" events, CLE events and other social events. These events all focus on issues relevant to federal practitioners and provide an important bridge between our federal judges in Orange County and the attorneys who practice before them.


Sale of assets of wholesale distributor of natural less sodium sea salts at public auction to take place on December 8, 2016 at 10:00 a.m. Please click here for details.


acquisition of coshocton hospital in ohio out of chapter 11 closes

The Firm represented Prime Healthcare Foundation Inc. in connection with its acquisition of substantially all of the operating assets of Coshocton Hospital in Ohio. Prime was the successful bidder acquiring the hospital and all of its ancillary real and personal property assets for over $10mm through a bankruptcy court approved sale. The Firm's transactional and bankruptcy team, comprised of Michael Petersen and Len Shulman headed the engagement.


Jim Bastian and Ryan O'Dea on "Structured dismissals and gift plans"

Jim Bastian and Ryan O'Dea were on a panel for the Orange County Bar Association Commercial Law and Bankruptcy Section, entitled "Structured Dismissals and Gift Plans" An Exercise in Judicial Efficiency or Improper Subversion of the bankruptcy Code?" on October 13, 2016 with the Hon. Erithe Smith, United States Bankruptcy Judge for the Central District of California. The panel discussion covered the background and implications of In re Jevic, a decision on appeal before the United States Supreme Court. For more information on this panel, click here.


The Firm represented Prime Healthcare Foundation in its acquisition of Coshocton Hospital out of Chapter 11.

The Firm represented Prime Healthcare Foundation in its acquisition of Coshocton Hospital out of Chapter 11. Len Shulman and Mike Petersen handled all aspects of the transaction including assisting Prime with its due diligence, preparing and revising all operative transactional documents, addressing various regulatory matters and securing bankruptcy court approval of the transaction.


Rika M. Kido, an associate of the Firm, was recently named to the Board of Directors of the Orange County Bankruptcy Forum.


Chapter 11 Plan Confirmed for American Spectrum Realty, Inc.

James C. Bastian, Jr., assisted by Melissa Lowe, recently confirmed a Chapter 11 liquidating plan proposed jointly by the debtor and by the creditors who forced the debtor into bankruptcy who the Firm represented. The plan is the result of many months of intense negotiations among the debtor, the petitioning creditors and the committee of creditors. The plan was confirmed over very late objections of the IRS and FTB and will allow the assets of the debtor to be liquidated over time and payments made to creditors.


Leonard Shulman and Michael Petersen represented Michael (Mike) Harrah in his quest to acquire the Orange County Register newspaper.

Initially this representation involved preparing and submitting a bankruptcy auction bid for the media and related real estate assets on March 11 th. The Firm prepared a full set of bid documents including Asset Purchase Agreement and extensive exhibits. The Firm also provided support on the financing front, preparing loan documents for purchase funding for Mr. Harrah's acquisition entity.

On Monday following the March 11 th auction, the Debtor selected a stalking horse and required that all parties who wished to participate in the auction file a modified bid. Again, the Firm worked diligently into the night in order to file a revised Asset Purchase Agreement on different terms. The second bid was timely submitted securing an opportunity to bid at the auction held Wednesday March 13.

Ultimately Digital First Media ("DFM") was selected as the winning bidder. Mike Harrah reached out to DFM and on March 23 rd struck a business deal to acquire, the Register's Orange County real estate assets, related personal property, and to lease the office building and print facility to DFM. Closing had to take place with a week and a day. The Firm then proceeded to negotiate and document these complex transactions, which closed almost concurrently with DFM closing of the purchases of all the assets from Freedom Communications.


Melissa Davis Lowe named to the Board of Directors of the First Tee of Orange County

Melissa Davis Lowe, a partner of the Firm, was recently named to the Board of Directors of the First Tee of Orange County, an organization dedicated to providing access to golf to all young people and providing them with character-building and life skills lessons through the game of golf.


Michael J. Petersen Elected to Board of Directors

Shulman Hodges & Bastian LLP is pleased to announce that Michael (Mike) J. Petersen has been elected to the board of director of the Irvine Chamber of Commerce. Mike will officially begin serving his 3 year term on July 1, 2016. Mike lives and works in Irvine and is looking forward to this opportunity to be of service to Irvine and its business community.


Shulman Hodges & Bastian LLP names 2 new partners.

Irvine, California based Shulman Hodges & Bastian LLP, a full-service business law firm, is pleased to announce that Melissa Davis Lowe and Kiara Gebhart have been named partners in the firm.

Ms. Lowe focuses her practice on insolvency, reorganization and bankruptcy litigation. She joined the firm in 2007 following her graduation from Loyola Law School and before that, completing her undergraduate studies at the University of Arizona. She also possesses an LLM in Tax from Loyola Law School. Ms. Lowe is a past president of the Orange County Bankruptcy Forum and former member of the Board of Directors of the California Bankruptcy Forum. She has also been active with the Junior League of Orange County and The First Tee of Orange County.

Ms. Gebhart is part of the firm's litigation department and has extensive practice experience in all manners of business litigation, including state court, federal court and private arbitration and mediation. She joined the firm in 2008 after completing her undergraduate and law school studies at the University of San Diego. Ms. Gebhart serves as a member of the Board of Directors of the Orange County Chapter of the Federal Bar Association and has been an active supporter of various charities, including the American Heart Association.

"We are so excited to have these two wonderful lawyers as partners," said Leonard Shulman, SHB's managing partner. "They have both been tremendous assets of the firm to this point and we felt that based upon their accomplishments, relationship with clients, status in the legal community, and other intangible attributes, it was time to bring both of them within our partnership ranks."

"Kiara is an amazing attorney with a tremendous attention to detail. She has an incredible ability to manage a litigation case from beginning to end and has a proven track record of achieving cost-effective results. Having her as part of our litigation team has been a tremendous asset for us," said Ron Hodges, who heads the firm's litigation department.

"Melissa has proven herself to be a talented and pragmatic insolvency and bankruptcy practitioner," said Jim Bastian, who leads the firm's reorganization and bankruptcy practice area. "She is well respected by clients as well as her peers and has stood out as a leader in the Southern California bankruptcy community for several years."

To learn more about Ms. Lowe and Ms. Gebhart and generally about Shulman Hodges & Bastian LLP, please visit www.shbllp.com.


THE FIRM CONGRATULATES, PARTNER, JAMES C. BASTIAN!

Congratulations to Partner, James C. Bastian for being recognized as an individual 2015 Honoree for the 30th Annual National Philanthropy Day - Orange County. National Philanthropy Day has become the most prominent philanthropic recognition event in Orange County, with more than 1,000 honorees since its inception in 1986. This year marks the 30th Anniversary of National Philanthropy Day, which began when President Ronald Reagan proclaimed this special day honoring top philanthropists and business leaders. Jim has been invited to an awards luncheon on November 19, 2015 to celebrate this achievement. The Firm is honored to have one of their named partners chosen as an individual honoree. Congrats!


In re Crown Polymers, LLC

The Firm, through the efforts of Len Shulman, procured approval of a combined plan and disclosure statement, jointly proposed by the debtor and the Firm's client, resulting in the acquisition of the debtor by the Firm's client. Confirmation of the plan and approval of the disclosure statement was obtained in approximately 75 days from the filing of the Chapter 11. The plan provides for the payment of all administrative and priority claims along with a material distribution to general unsecured creditors. As a consequence of confirmation of the plan, the Firm's client became the owner of all of the debtor's assets.


Success on Motion for Summary Judgment

Len Shulman and Melissa Lowe, representing a Chapter 7 trustee, prevailed in obtaining summary judgment on a constructive fraudulent transfer and declaratory relief action such that the trustee will now be able to sell a piece of real property with over $500,000 of equity to use to benefit creditors and the bankruptcy estate.


Chapter 11 Plan Confirmed

On June 16, 2015, Melissa Lowe and Jim Bastian, representing the Official Committee of Unsecured Creditors, confirmed a Chapter 11 Liquidating Plan of Reorganization which had been proposed jointly with the debtor.


Revocation of Discharge Obtained

On June 24, 2015, Melissa Lowe and Len Shulman were successful in obtaining judgment on behalf of Karl T. Anderson, the Chapter 7 trustee in the case, to revoke the discharge of two debtors who sold assets of the bankruptcy estate post-petition without the trustee's knowledge and after the trustee had made demand for turnover of such assets. The judgment results in the non-discharge of over $400,000 in unsecured claims filed in the bankruptcy estate.


FIRM SUCCESSFULLY REPRESENTS CALIFORNIA’S LARGEST CAR DEALERSHIP

The firm's litigation department successfully represented one of California's largest car dealerships in obtaining and collecting a judgment against a number of auto collision repair facilities for irregular billing and unfair business practices.


FIRM SUCCESSFULLY DEFENDS REAL ESTATE INVESTMENT PARTNERSHIP

The firm's litigation department successfully defended a real estate investment partnership against claims by a large nationally recognized bank for breach of contract arising out of a failed trustee foreclosure sale.


FIRM REPRESENTS FOOD AND BEVERAGE FLAVORING SPECIALIST

The firm represented a food and beverage flavoring specialist in negotiations and documentation of a shareholder buy sell transaction and avoided litigation relating to certain non compete and non solicitation provisions in the contracts. The firm is now pursuing claims on behalf of the client for misappropriation of her trade secrets and intellectual property.


FIRM SUCCESSFULLY DEFENDS DENTAL PRACTICE MANAGEMENT COMPANY

The firm successfully defended one of the country’s largest dental practice management companies against claims of unfair business practices and allegations of unlawful corporate practice of medicine.


FIRM OBTAINS MULTI-MILLION DOLLAR LEGAL MALPRACTICE SETTLEMENT

Shulman Hodges & Bastian LLP recently obtained a multi-million dollar settlement in a legal malpractice case it was prosecuting against a large national law firm that arose out of the defendants' alleged failure to recognize various conflicts of interest in documenting a series of real estate investments for multiple parties.


FIRM SUCCESSFULLY DEFENDS AUTOMOBILE DEALERSHIPS

SHB LLP successfully defended a number of automobile dealerships against consumer claims alleging unfair business practices and improper documentation of leased vehicles.


FIRM NEGOTIATES RESOLUTION FOR DA IN RIVERSIDE

The firm's litigation department successfully negotiated a resolution of allegations by the office of the District Attorney in Riverside regarding the issue of unfair business practices in the context of print advertising and the alleged practice of rebate stacking.


FIRM REPRESENTS GENERAL CONTRACTOR

The litigation department successfully represented a general contractor against claims of substandard work and the improper recording of liens against real property. The claims were dismissed and the contractor was paid for the services performed.


DISPUTE BETWEEN SHAREHOLDERS OF A LARGE FAMILY OWNED BUSINESS

A dispute between shareholders of a large family owned business resulted in a successful buy sell agreement whereby the firm's client was the successor owning and operating the entire company.


FIRM DEFENDS PLASTIC BOTTLING MANUFACTURER

SHB LLP recently defended one of California's largest plastic bottling manufacturers against product liability claims and obtained a dismissal of the case without the client paying any money.


FIRM REPRESENTS VITAMIN AND SUPPLEMENT DISTRIBUTOR

The litigation department recently represented a local vitamin and supplement distributor and successfully defended it against claims of tainted product and other allegations of product liability. The firm was also successful in collecting monies owed the client for the product sold.


FIRM NEGOTIATES SETTLEMENT FOR CLAIMS OF CORPORATE PIRACY, UNFAIR BUSINESS PRACTICES AND MISAPPROPRIATION OF TRADE SECRETS

A large national value added reseller of computer hardware and software products and a number of its executives were sued for claims of corporate piracy, unfair business practices and misappropriation of trade secrets. The firm was able to negotiate a favorable settlement that resulted in a dismissal of all claims.


FIRM IS PURSUING RECOVERY OF FEES AND COSTS FOR DEFENDING PRESIDENT AND CEO OF CALIFORNIA MANUFACTURER

The President and Chief Executive Officer of a large California based manufacturer was sued for alleged wrongful conduct relating to employment practices and the mishandling of worker's compensation claims. The firm obtained a defense verdict at trial and is currently pursuing the recovery of the fees and costs incurred in having to defend the case.


FIRM SUCCESSFULLY SETTLES CLASS ACTION REPRESENTING A NUMBER OF RESTAURANT CHAINS

The firm recently represented a number of restaurant chains and successfully settled class action claims arising out of alleged rest and meal time violations.


CLAIMS AGAINST MULTIPLE INSURANCE COMPANIES SETTLED

The firm's litigation department recently prosecuted and successfully settled multiple claims against insurance companies for alleged breach of contract and insurance bad faith relating to coverage under comprehensive general liability insurance policies purchased by its automobile dealership, fast food restaurant, and manufacturing clients.


FIRM SUCCESSFULLY DEFENDS CLIENT AGAINST CLAIMS OF SEX DISCRIMINATION, WRONGFUL TERMINATION AND LABOR CODE VIOLATIONS

The firm successfully defended one of its manufacturing clients against claims of sex discrimination, wrongful termination, and labor code violations.


FIRM SUCCESSFULLY DEFENDS AUTOMOBILE DEALERSHIP

SHB LLP successfully defended one of its automobile dealership clients against claims of wrongful termination, gender discrimination and violations of the labor code.


FIRM ASSISTS NEGOTIATION AND DOCUMENTATION

The firm assisted with the negotiation and documentation of a high level executive employment contact for its client that was hired to become President and CEO of a multi billion dollars holding company based out of the southwest.


FIRM SET ASIDE A MULT-MILLION DOLLAR DEFAULT JUDGMENT

The firm successfully set aside a multi-million dollar default judgment that was entered against its real estate investment company client by showing the fraudulent nature of the pleadings and exhibits submitted to the court. The case was ultimately settled for a very small fraction of what was sought against the client.


FIRM DEFENDS HOSPITAL CLIENTS

The firm recently defended one of its hospital clients against alleged unfair business practices and claims of unlawfully balance billing patients for emergency room services. The case was ultimately dismissed against its client.


FIRM REPRESENTS POLYMER COMPANY

The firm represents one of the country's largest polymer companies and successfully handled the negotiation and documentation of a purchase of a competitor business out of bankruptcy.


FIRM DEVELOPS HIPPA COMPLIANCE POLICY AND TRAINING MATERIALS

The firm developed a high tech HIPPA compliance policy and training materials for one of its health case start up clients.


Effective February 2, 2015 our street address has changed

Please note our office did not move from its current location. The Firm's new address is 100 Spectrum Center Drive, Suite 600, Irvine, CA 92618


CONGRATULATIONS TO KIARA GEBHART

The Firm congratulates Kiara Gebhart who has joined the Board of Directors for the Orange County Chapter of the Federal Bar Association.


Firm Successfully Represents Hospital Purchaser

Following five hours of argument and testimony and the resolution of nine objections, the Firm is pleased to announce that on June 23, 2014, the Bankruptcy Court for the Northern District of West Virginia approved the $15.3 million sale of Fairmont General Hospital to the Firm's client, Alecto Healthcare Services Fairmont.

Mark Bradshaw
Partner


June 23, 2014

CONGRATULATIONS, SHULMAN HODGES & BASTIAN LLP!

Shulman Hodges & Bastian LLP, a Southern California based full service business law firm, is proud to be recognized by the Orange County Business Journal as one of the Best Places to Work in Orange County in 2014! We are very fortunate to have many great attorneys and staff that help make our firm a great place to work. Thank you for the recognition.


Trial Victory on Discharge Action in Bankruptcy Court

SHB represented a Chapter 7 bankruptcy in a trial in the United States Bankruptcy of the Central District of California resulting in a successful objection to a debtor's discharge. The debtor's discharge was denied under Bankruptcy Code Section 727(a)(2) based on a showing that debtor transferred property of the bankruptcy estate within one year of the bankruptcy filing with the intent to hinder, delay, or defraud his creditors and under Section 727(a)(3) based on a showing that the debtor failed to maintain records by which the Chapter 7 trustee could ascertain the debtor's financial condition and business transactions. The Court found the debtor to not be credible based on his testimony at trial which contradicted the debtor's previous statements under oath. The debtor has nearly $6 million in unsecured claims which will not be discharged in the case.

Melissa Davis Lowe
Attorney


FOR IMMEDIATE RELEASE

IRVINE, California -- California law firm Jeffer Mangels Butler & Mitchell LLP and the name partners of California law firm Shulman Hodges & Bastian LLP have announced the formation of 9019 Bankruptcy Arbitration and Mediation ( 9019BAM!), a mediation and arbitration service focusing on the resolution of complex bankruptcy and commercial disputes.

"With the right mediator or arbitrator the process should work for all involved"

9019BAM! provides a panel of independent mediators and arbitrators from numerous law firms, who are experienced commercial and bankruptcy trial lawyers as well as experienced neutrals.

"Evaluative mediation is usually favored by participants in bankruptcy and commercial dispute resolutions," said veteran trial lawyer John Graham, a partner at Jeffer Mangels Butler & Mitchell LLP and co-manager of 9019BAM! "Our neutrals have the depth and experience to deliver the type of recommendations and opinions that matter when the parties need to know what might occur should the case go back to court."

Graham also noted that "Bankruptcy Rule 9019(c) allows contested matters, including discovery disputes, to be resolved by arbitration if the parties agree. This provision is vastly underutilized, but can provide in certain cases a more efficient resolution process than the courts. Valuation disputes in particular lend themselves to resolution in this manner, especially through 'baseball style arbitration' where the arbitrator will select one party's figure or the other's."

"As a practicing lawyer, I know how frustrating it can be to clients who have to wait for months for a trial date, due to backlogs in courts throughout California," said 9019BAM! co-manager, Leonard Shulman, a partner at Shulman Hodges & Bastian LLP. "Mediation or arbitration can provide a quicker result, but lawyers can be reluctant to use neutrals who don't have the specialized experience required for certain complex matters. That's where we come in."

Lawyers looking for the right mediator or arbitrator can visit the 9019BAM! website, review the background and experience of available neutrals, and click on "Schedule a Neutral," to view the selected neutral's calendar, in real time. This allows lawyers to schedule their mediation or arbitration on consecutive days, at a time that is convenient. This unique online calendaring system allows parties to propose and confirm dates and easily address the complicated scheduling issues that often hinder the mediation and arbitration process.

"With the right mediator or arbitrator the process should work for all involved," said Graham. "If we cannot add value to the mediation or arbitration by providing a specialist who fits the case, we will not take the matter."

Contacts:

9019BAM!
Leonard Shulman, 855.900.9019
LShulman@9019BAM.com

or

John A. Graham, 855.900.9019
JAG@9019BAM.com


June 4, 2014

On June 18, 2014, Len Shulman will be a panelist at the Orange County Bar Association, Commercial Law & Bankruptcy Section luncheon on Recent Developments in Chapter 11.


Shulman Hodges & Bastian LLP brought and prevailed on litigation declaring the money judgments to be forever nondischargeable

Several executives of a prominent local manufacturing company made the ill-conceived decision to leave their company and take with them its protected trade secrets ultimately resulting in judgments being entered against them in state court for many millions of dollars. When they then filed bankruptcy to attempt to escape liability, Shulman Hodges & Bastian LLP brought and prevailed on litigation declaring the money judgments to be forever nondischargeable. It is critical for anyone pursuing litigation claims to set up the case to ensure any later non-dischargeable claims are preserved. The attorneys at Shulman Hodges & Bastian LLP have the expertise necessary to protect your assets and forever pursue those who attempt to interfere with them.

John Mark Jennings
Attorney


SHB is currently representing a landlord

The Firm is currently representing an Orange County based commercial real estate landlord with the negotiation and documentation of an office lease for approximately 65,000 square feet. The proposed premises constitute a substantial portion of an office building located in Corona, California. Shulman Hodges & Bastian LLP's real estate and transactional lawyers previously represented the same client with respect to its acquisition of the commercial office building.

Paul Ocampo
Attorney


In the case In re Octavio Ortiz, Case No. 2:13-bk-26239-TD

In the bankruptcy case In re Octavio Ortiz the firm assisted the Chapter 7 Trustee with closing escrow on the sale of real property in Arizona. In addition to providing its legal expertise regarding a sale of real estate outside of California, the firm worked with the Trustee and his broker to maximize the net proceeds received from the sale. The sale resulted in sufficient funds in the bankruptcy estate to allow the Trustee to pay all creditors in full, with a surplus to the Debtor.

Rika Kido
Attorney


The transactional department has advised a client regarding a lender's demand

The transactional department has advised a client regarding a lender's demand for default interest based upon a failure to comply with a covenant to change property management companies. The lender suffered no damages as a result of the failure to change property managers as the each payment was timely made and the loan was repaid upon maturity. Arguments include that the default interest is an unenforceable penalty and disproportionate to any damages.


Hospital Landlord Financing

Hospital Landlord Financing - Shulman Hodges & Bastian LLP represented Pacific Coast Holdings, LLC in connection with a new $49 million financing of its hospitals and medical office buildings including Western Medical Center and Costal Communities hospitals both located in Santa Ana, CA, Western Medical Center hospital in Anaheim, CA and Chapman Medical Center in Orange, CA. All are leased to and operated by Integrated Health Care Holdings, Inc.


Alecto Healthcare Services

We are pleased to announce that Alecto Healthcare Services has retained the Firm to assist it with the acquisition of Fairmont General Hospital in West Virginia. The Firm will be working closely with the legal and management team of Alecto to negotiate, document and obtain court approval of the sale transaction.


The Firm Successfully Prosecuted a Lawsuit on Behalf of its Dubai Based Investor Group

The firm successfully prosecuted a lawsuit on behalf of its Dubai based investor group client by obtaining a judgment against a high end sand rail and off road racing company based in Riverside, California. The firm's client invested several hundreds of thousands of dollars in the local outfit that breached various agreements regarding the investment and pay back of the monies. The firm is currently taking efforts to collect the judgment on behalf of its client.


Kiara Gebhart joined the executive leadership team for the American Heart Association and American Stroke Association

Kiara Gebhart joined the executive leadership team for the American Heart Association and American Stroke Association for its 2014 Orange County Heart Run & Walk, to take place on September 7, 2014 at Laguna Niguel Regional Park. The event is a sanctioned 5k/10k run and 5k walk event, designed to celebrate those who have made lifestyle changes and to encourage many more to take the pledge to live healthier lifestyles. The Firm is a sponsor of the event and will field a Firm team to participate in the event.


Mission Hospital Foundation will hold its 22nd Annual Golf Classic

June 19, 2014

On June 19, 2014, the Mission Hospital Foundation will hold its 22 nd Annual Golf Classic at Pelican Hill in Newport Coast. Jim Bastian is returning to serve as chair of this event after serving in the same role in 2013. SHB is a proud sponsor of this tournament, which netted over $380,000 in 2013. For more information about how you can participate or support this great cause, visit www.missionfoundationevents.com/


The Firm will be attending the 26th Annual California Bankruptcy Forum to be held on May 16 to May 18, 2014 in Santa Barbara, California

May 16, 2014

The Firm will be attending the 26 th Annual California Bankruptcy Forum to be held on May 16 to May 18, 2014 in Santa Barbara, California. Senior Associate Melissa Lowe serves this year as one of the Educational Co-Chairs for the event. The CBF will present some wonderful education programs covering a variety of topics in both commercial and consumer bankruptcy. Kevyn Orr, the emergency manager of the Detroit, Michigan bankruptcy, will be the Keynote speaker for the program. It is sure to be a very interesting presentation.


James C. Bastian, Jr. and Melissa Davis Lowe published in California Bankruptcy Journal

May 12, 2014

Mr. Bastian and Ms. Lowe's article entitled "Who's On First? How the Insolvency of a Construction Company Can Change the Priorities of a Secured Creditor - Even When it has Fully Perfected Lien Rights!" was published in Volume 33, Number 1, 2014 of the California Bankruptcy Journal in May 2014. The article discusses the priorities of creditors when a construction company becomes insolvent or files for bankruptcy and the differences between a construction company working on public works projects versus private jobs. The article further discusses preference actions and the effect on certain defenses to preference actions in a case of a debtor whose jobs are public works projects.


the Firm successfully settled a $4.3 million avoidance action

April 16, 2014

On April 16, 2014, the Firm successfully settled a $4.3 million avoidance action against its client for less than one percent of the amount in controversy. Our client, an internet advertiser, rendered services to an entity allegedly affiliated with a chapter 11 debtor-in-possession. Subsequent to a Chapter 7 conversion of the debtor's bankruptcy, the duly appointed Chapter 7 Trustee sought to avoid all payments to our client under the theory that said payments were made by an alter ego of the debtor operating outside the bankruptcy and in usurpation of corporate opportunities.


Spirit of Volunteerism Award

April 9, 2014

On April 9, 2014, Jim Bastian was honored with a Spirit of Volunteerism Award, by OneOC, a non-profit organization committed to promoting volunteerism throughout Orange County. Jim was nominated for this award by the Mission Hospital Foundation, for which Jim serves on the board of directors and is chair of its upcoming 22 nd annual Golf Classic. You can learn more about this award through the attached link. http://spiritofvolunteerism.wordpress.com/2014/02/28/honoree-2014-jim-bastian/


SHB represented Perfect Galaxy and its affiliate China Great Wall Energy (collectively "Great Wall")

March 20, 2014

On March 20, 2014, the United States Bankruptcy Court for the District of Delaware entered an order allowing for the final closing steps to proceed in connection with the acquisition of substantially all of the assets of Satcon Technology's assets by SHB client Perfect Galaxy Ltd. SHB represented Perfect Galaxy and its affiliate China Great Wall Energy (collectively "Great Wall") in connection with vendor claims in excess of $40MM in the chapter 11 bankruptcy case commenced by Satcon in late 2012. With SHB's assistance, Great Wall first provided post-petition vendor financing to Satcon and then ultimately, SHB helped broker a settlement among the bankruptcy trustee, Charles Forman and Satcon's secured lender, Silicon Valley Bank, which resulted in Great Wall's acquisition of substantially all of Satcon's assets. Jim Bastian led the firm's bankruptcy representation and Mike Petersen handled various aspects of the transaction including financing, sale and closing documentation.


Hospital Landlord Financing

March 20, 2014

Shulman Hodges & Bastian LLP represented Pacific Coast Holdings, LLC in connection with a new $49 million financing of its hospitals and medical office buildings including Western Medical Center and Costal Communities hospitals both located in Santa Ana, CA, Western Medical Center hospital in Anaheim, CA and Chapman Medical Center in Orange, CA. All are leased to and operated by Integrated Health Care Holdings, Inc.


SHB was successful in settling a loan default and guaranty action

March 13, 2014

On March 13, 2014, SHB was successful in settling a loan default and guaranty action against three owners of a closed multi-million dollar window and door company. The original complaint sought amounts in excess of a million dollars, but the action was settled for an amount significantly less than the demand.


In Re Walldesign, Inc. approved the final settlement in six actions brought by SHB

February 28, 2014

On February 28, 2014, the bankruptcy court in the matter of In Re Walldesign, Inc. approved the final settlement in six actions brought by SHB on behalf of Walldesign's restructuring officer to collect on amounts owed to Walldesign Inc. at the time of its bankruptcy filing. SHB was able to recover almost a half million dollars through its collection efforts.

Samuel J. Romero
Attorney


Jim Bastian served as a panelist for the Commercial Finance Conference of California's annual Predictions Panel

January 15, 2014

On January 15, 2014, Jim Bastian served as a panelist for the Commercial Finance Conference of California's annual Predictions Panel held at the Center Club in Costa Mesa. Mr. Bastian and 3 other panelists provided commentary and predictions on a wide variety of financial and economic indicators for the 2014 year.


the Firm generated significant investor interest in a parcel of real property listed in the bankruptcy schedules of In re Salazar, case number 6:12-bk-14062-MJ

January 2014

In January of 2014, the Firm generated significant investor interest in a parcel of real property listed in the bankruptcy schedules of In re Salazar, case number 6:12-bk-14062-MJ. During the hearing to approve the sale of said property, the Firm successfully conducted an overbid auction which generated $1.5 million, an amount five times greater than the scheduled value - an unprecedented outcome resulting from "the most spirited overbidding" in the seasoned Judge's tenure on the bench. By and through the Firm's efforts, the bankruptcy estate netted almost $900,000 of surplus funds.

Ryan O'Dea
Attorney


The Firm is pleased to support the City of Laguna Niguel in a Food Drive

November 27, 2013

Shulman Hodges & Bastian LLP is pleased to support the City of Laguna Niguel in a food drive benefitting the Orange County Food Bank to help fight hunger during this holiday season. Going above and beyond the typical food drive, this campaign uses the unique concepts created by Canstruction, Inc., an international organization that engages and inspires communities to work together to raise canned goods to feed hundreds of thousands of hungry people. For this particular Canstruction® project, Shulman Hodges & Bastian LLP joined other volunteers in donating funds for the purchase of canned goods to be used to build a one-of-a-kind holiday-themed sculpture in the Laguna Niguel City Hall. With the help of a Canstruction-borrowed architect, on Tuesday, November 26, community volunteers built a gingerbread house structure made out of canned goods purchased with those donations. All of cans used for the structure will be donated to the Orange County Food Bank to help feed the hungry. John Mark Jennings, a partner with the firm and chairperson for this event, said "We are so fortunate to have the opportunity to participate in this Canstruction project, which has brought a beautiful and unique sculpture to City Hall while, more importantly, feeding many, many people. With over 500,000 people in Orange County who are food insecure, we have much work left to be done. We invite all our community groups to join us in this project and donate funds to help feed those in need here in Orange County." To receive more information about this Canstruction® project or to make a donation, email canstructionlagunaniguel@cox.net or contact Mr. Jennings at (949-340-3400.


Success! The Firm puts together 346 Thanksgiving Dinner Boxes for OC Food Bank

November 19, 2013

The Firm, with the support and help of donations received from employees, friends of the Firm and neighboring businesses in our building, were successful in putting together 346 complete Thanksgiving dinner boxes for the Orange County Food Bank. For more information about the Orange County Food Bank please visit their website at www.ocfoodbank.org

Thanks to everyone for your continued support!


The Firm was successful in obtaining a $400,000 judgment

November 2013

The Firm was successful in obtaining a $400,000 judgment against multiple defendants in a fraudulent transfer, preferential transfer, turnover, and conversion case held in November 2013 in the Central District Bankruptcy Court, Santa Ana Division. She further successfully defended a motion for new trial and motion for relief from the judgment filed by the defendants.


The Firms 2013 Thanksgiving Food Drive Dinner Boxes

November 1, 2013

This year in lieu of a general food drive for Thanksgiving, we spoke to the Orange County Food Bank ( www.ocfoodbank.org )and worked with them on building Thanksgiving food boxes for a family of 4. What this means is we will need everyone's help in donating the food items needed to build these Thanksgiving dinner boxes together. To make one Thanksgiving dinner box the following is needed: 1 Box of Stuffing; 1 Box of Instant Mashed Potatoes; 1 Box Biscuit Mix; 1 Can of Cranberry Sauce; 2 Cans of Corn; 2 Cans Green Beans; 1 Can of yams; 2 Cans of Chicken Broth; 1 Gravy packet; $10 Gift card for Turkey The Firm's goal, with your help, is to put together 300 Thanksgiving dinner boxes. These Thanksgiving dinner boxes will be built by the Firm at our office on Tuesday, November 20 th. We would like all donated food and/or gift cards delivered to our office by no later than Monday, November 18 th. If you would like to donate money instead of food items, we are happy to do the shopping for you to help create all of the Thanksgiving dinner food boxes. Thank you for your support.


SHB was successful in seeking a million dollar judgment

October 16, 2013

On October 16, 2013, SHB was successful in seeking a million dollar judgment against a defaulted lessee for a lease of medical equipment. SHB is currently defending the lessee's appeal of entry of that million dollar judgment in its appellate practice.


Partner, Rob Huttenhoff Successfully Defends an $800k Nondischargeability Action

September 16, 2013

Partner Rob Huttenhoff successfully defends an $8ook nondischargeability action against well know personal injury lawyer, Frederico Sayre. The court found that plaintiff merely proved a breach of contract action not arising to fraud or conversion in granting a motion for nonsuit.


In re Boundary Bay Capital

July 11, 2013

On July 1, 2013, the United States Bankruptcy Court for the Central District of California, Santa Ana Division, confirmed a Chapter 11 plan of reorganization in the case of In re Boundary Bay Capital, LLC. The Firm, led by Len Shulman, represented the Unsecured Creditors Committee in the case, who supported confirmation of the plan after months of negotiations with multiple creditors. The Firm was able to successfully negotiate for the plan to provide two options for payment to the unsecured creditors. Specifically, creditors are given the option to be paid a smaller percentage of their claim within just a few months after the plan's effective date, or to be paid over time with the risk that the distribution could be more or less than the alternative buyout option. Once these options were negotiated, the Committee fully supported the plan and it was confirmed.


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