This is a case pending in Memphis, Tennessee, brought by a group of Hammersmith Trust investors against a Memphis attorney, David Johnson, for his role as trustee and counsel for Hammersmith Trust. The Receiver filed a Motion to Intervene, which was granted by the Court. A copy of the Receiver's Complaint against David Johnson can be viewed below.

Prior to the time the Receiver intervened in the action, Johnson filed a Motion for Judgment on the pleadings. On March 23, 2001, the Court issued its Order denying the motion. The Order can be viewed below.

On March 7, 2001, the Court in Dallas issued its Order instructing the Receiver to prepare a Litigation Budget. On April 5, 2001, the Receiver filed his Litigation Budget. On April 13, 2001, the Court issued its Order regarding the Budget.

On September 18, 2001, the Memphis Court issued a Rule 16(b) Scheduling Order which established various important deadlines in the case. It can be viewed below. The Receiver is in the process of conducting discovery in the case.

On March 7, 2003 the Receiver filed a Motion to Approve Compromise and Settlement Agreement and Allow Payment of Fees with respect to this litigation. The Receiver seeks approval to settle the case for $600,000.00. On March 11, 2003 the Court issued an Order Setting Hearing pursuant to which the matter was set for hearing at 9:00 a.m. on April 11, 2003. On April 22, 2003 Judge Kaplan issued his Findings and Recommendation pursuant to which he recommended that the settlement be approved but that the legal fees be denied. The Receiver filed Objections to the Findings and Recommendation and, after a hearing held on July 28, 2003, Judge Lynn issued an Order Modifying Findings and Recommendation.