January
2007: Distribution News
We at Cureton Clark, P.C. have entered into the second phase of
our representation of builder members to protect their distribution
rights in the HOW liquidation. After numerous communications with the
Commission’s Special Deputy Receiver, Patrick Cantilo, we learned
that he does not intend to make distributions until the later part of
2008 as a result of two large lawsuits and an Internal Revenue Service
issue. A distribution in late 2008 is not guaranteed and, to that end,
monies may not be distributed until 2009 or later.
To prevent the membership fund’s complete dissipation, and in an
effort to expedite the liquidation, we are in the process of obtaining
information not only regarding the lawsuits but also obtaining details
pertaining to the actual amount of money currently in the fund,
including any reserves that have been put aside to defend litigation.
Our knowledge regarding the present suits will enable us to not only
determine the validity of the 2008 distribution date but will provide
an opportunity to discuss same with the Trustee. This will protect and
preserve the funds presently in place thereby increasing the amount of
money builders will receive.
Without Cureton Clark, P.C.’s involvement and oversight, the
Trustee has no legitimate overseer. Each year that passes means less
money in builder pockets and more builders that will not receive a
distribution.
Over the next month, Cureton Clark, P.C. not only expects to have
a firm grasp of all litigations pending involving HOW builders but
anticipates determining each of our client’s eligibility and
percentage of interest entitlement.
January
2006:
HOW Representation Group meets Builders and Executive Officers at
the NAHB Convention
The HOW Builders’ Representation Group
received enthusiastic support at the annual NAHB convention in
Orlando. The builders were informed that a plan of liquidation has
been approved by the Virginia Corporation Commission and that there
may be a "substantial" surplus available for distribution to
HOW Builders after payment of all obligations.
Lead counsel Jerald R. Cureton, associate counsel and Builder
Liaison Robert Johnston represented our group. Meetings took place
with HOW builders, association executive officers and former HOW
executives who reviewed the status via power point and direct
discussions. As a result, group representation grew significantly.
In addition to the possibility of receiving some return on their
investment, a principal focus of the builders was that HOW might not
have been insolvent and hence, there may have not been any reason to
put HOW in receivership eleven years ago. This conclusion is
buttressed by the fact that most if not all of HOW’s liabilities
have been fully paid there is a "significant" surplus
remaining.
Currently the Group is in contact with the Special Deputy Receiver
and the Virginia Insurance Commissioner. We are receiving cooperation
from them as we actively monitor the Receivership proceeding.
Important developments will be highlighted on this site. We suggest
that HOW builders review it periodically. If you have any questions,
please contact Gina Zippilli or Jerry Cureton.