united states bankruptcy court southern district of ... - Trustee Services

Case 09-34791-RBR Doc 2172 Filed 10/28/11 Page 4 of 34
reasonableness.” In re S&I Investments, 421 B.R. 569, 583 (Bankr. S.D. Fla. 2009) citing In re
Bicoastal Corp., 164 B.R. 1009, 1016 (Bankr. M.D. Fla. 1993); see also In re Arrow Air, Inc., 85
B.R. at 886 (Bankr. S.D. Fla. 1988).
14. The 11th Circuit, in In re Justice Oaks II, Ltd., 898 F.2d 1544, 1549 (11th Cir.
1990) provided additional guidance regarding whether a settlement should be approved and
established a four-part test:
a. The probability of success in litigation;
b. The difficulties, if any, to be encountered in the matter of collection;
c. The complexity of the litigation involved and the expense, inconvenience
and delay necessarily attending it; and
d. The paramount interest of the creditors and a proper deference to their
reasonable views in the premises.
18. The Trustee submits that the proposed Settlement overwhelmingly satisfies the
Justice Oaks standard.
19. Although the Trustee believes strongly in his ability to prevail in litigation against
the PMB Firm in this matter, the Trustee also recognizes that the PMB Firm would assert a number
of defenses and that the outcome of litigation, both at the trial and appellate levels is never certain.
20. The issues that would likely attend any litigation between the Trustee and the
PMB Firm, while not materially different from the issues attendant to a number of the Trustee’s
other litigation cases, are potentially complex. Further, due to the positions advanced by both
parties, the defenses that the PMB Firm would likely assert, and the discovery that would be
necessary, the costs of litigating this matter would be significant. Accordingly, the
Trustee believes that the costs associated with litigating this matter through trial and the
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