United States District Court, S.D. Florida
ORDER AFFIRMING BANKRUPTCY COURT'S ORDER GRANTING
MOTION TO APPROVE STIPULATION TO COMPROMISE
L. ROSENBERG UNITED STATES DISTRICT JUDGE.
a bankruptcy appeal. On September 13, 2015, Debtor Alberto
Candaro ("Debtor") filed a voluntary Chapter 7
bankruptcy petition in the United States District Court for
the Southern District of New York. Venue was later
transferred to this Court. Appellee Robert Furr
("Trustee") is the permanent trustee of
Debtor's estate. Appellant Adam Sabo
("Appellant") is the sole creditor. On November 18,
2016, a Stipulation to Compromise Controversy Between the
Trustee, Debtor, and Other Parties ("Stipulation")
came before Judge Hyman of the Bankruptcy Court for approval.
Appellant objected. Following a hearing, the Bankruptcy Court
approved the Stipulation, overruling Appellant's
objections. Appellant appealed. Finding no reversible error,
the Court now AFFIRMS the Bankruptcy
Court's Order Granting Motion to Approve Stipulation to
Compromise Controversy between the Trustee, Debtor, and Other
Parties ("Order Approving Stipulation"). DE 1.
facts in this Section largely mirror those set forth in the
Stipulation. DE 13-4 at 410-30. The Court has confirmed their
accuracy by reference to the record, with a particular focus
on the exhibits admitted during the hearing before Judge
Hyman. Where this Section supplements the facts provided in
the Stipulation, the Court has so noted.
Appellant's Judgment Against Debtor.
about July 16, 1998, Appellant entered into a Stock Purchase
Agreement ("SPA") with Debtor to purchase 50% of
the shares in Candaro Realty Corporation ("Candaro
Realty"). At the time, Debtor was the sole shareholder
of Candaro Realty. Candaro Realty's only asset was a
single parcel of real estate.
early 2002, Appellant filed a derivative lawsuit (the
"Initial Action") against Debtor in the Supreme
Court of the State of New York, County of New York. See
Sabo v. Candaro, Index No. 101800/02.Appellant alleged
Debtor had impermissibly sold the parcel and misappropriated
the proceeds. Debtor asserted three counterclaims against
Appellant, including a breach of contract claim alleging
Appellant never paid the amount due under the SPA.
March 21, 2007, the Honorable Shirley Kornreich issued a
Decision and Order holding that Appellant was a shareholder
of Candaro Realty as a matter of law and was, therefore,
entitled to recover half of the proceeds from the sale of the
parcel. But the court also found that Appellant had breached
the SPA by failing to pay the full amount due thereunder.
November 2, 2007, the court entered a final judgment (the
"New York Judgment"), subtracting the amount still
due under the SPA, with interest, from the proceeds from the
sale of the parcel to which Appellant was otherwise entitled.
Judgment was entered in Appellant's favor against the
Debtor in the amount of $560, 304.41 and against Candaro
Realty in the amount of $648, 638.06.
Taxi Medallions and Related Litigation
was also the operator and sole shareholder of two New York
taxi cab businesses: H&M Cab and King Spring Taxi, Inc.
("King Spring"). H&M Cab owned NYC Taxi
Medallions Nos. 7N77 and 7N78 ("7N Medallions").
King Spring owned NYC Taxi Medallions Nos. 4J68 and 4J69
("4J Medallions"). Allegedly in connection with
Debtor's retirement to Florida, the four medallions were
transferred to businesses owned by Debtor's son, Heath
Candaro: Bonehead, LLC and Night Owl.
October 17, 2012 H&M Cab entered into a Medallion Sale
Contract with Bonehead. The transfer of the 7N Medallions to
Bonehead was completed through Gold Taxi Brokers, Inc.,
another company owned by Debtor. The transfer was approved by
the NYC Taxi and Limousine Commission.
October 17, 2012, King Spring entered into a Medallion Sale
Contract with Night Owl. The transfer of the 4J Medallions,
like the transfer of the 7N Medallions, was completed through
Gold Taxi Brokers, Inc. This transfer, too, was approved by
the NYC Taxi and Limousine Commission.
on the Trustee's investigation, which included a
discussion with Daniel Goodin of the NYC Taxi and Limousine
Commission, the Trustee estimated the medallions' value
at $500, 000.00 each. Capital One Medallion Finance, a trade
name of Capital One Equipment Finance Corp. ("Capital
One"), holds a security interest in the 7N Medallions
based upon a Note and Security Agreement, dated July 25,
2013. The face ...