Courtney Wallis Simpson Receivership web site: Q & A

COURTNEY WALLIS SIMPSON, YORK REGION REALTY, INC.
and
YORK MANAGEMENT GROUP
FREQUENTLY ASKED QUESTIONS

Below are common questions submitted to the Receiver, Michael J. Quilling, and his response to those questions. You may either click on one of the questions below to go directly to that question and answer, or you may simply scroll down to read all of the information provided on this page.

What is a receiver?
Who is Michael J. Quilling?
How is the Receiver and the legal and accounting professionals hired by him going to be paid?
Can the Receiver give me legal advice or should I hire an attorney to help me in this case?
What do I need to do?
How does a receivership work?
When will I receive my claim form?
When will I receive my portion of the funds? How much?


QUESTION	What is a receiver?
ANSWER	According to Black's Law Dictionary, a receiver is defined as:
	"A person appointed by a court for the purpose of preserving property of a debtor pending an action against him, or applying the property in satisfaction of a creditor's claim, whenever there is danger that, in the absence of such an appointment, the property will be lost, removed or injured. An indifferent person between the parties to a cause, appointed by the court to receive and preserve the property or fund in litigation, and receive its rents, issues, and profits, and apply or dispose of them at the direction of the court when it does not seem reasonable that either party should hold them. A fiduciary of the court, appointed as an incident to other proceedings wherein certain ultimate relief is prayed. He is a trustee or ministerial officer representing court and all parties in interest to litigation, and property or fund entrusted to him. "
	Black's defines a Receiver pendente lite as:
	"A person appointed to take charge of the fund or property to which the receivership extends while the case remains undecided. The title to the property is not changed by the appointment. The receiver acquires no title, but only the right of possession as the officer of the court. The title remains in those in whom it was vested when the appointment is made. The object of the appointment is to secure the property pending the litigation, so that it may be appropriated in accordance with the rights of the parties, as they may be determined by the judgment in the action."


QUESTION	Who is Michael J. Quilling?
ANSWER	Michael J. Quilling is a lawyer engaged in the private practice of law through his law firm:Quilling, Selander, Cummiskey & Lownds, P.C.,2001 Bryan Street, Suite 1800, Dallas, Texas 75201. Mr. Quilling is an AV-rated lawyer and is board certified by the Texas Board of Legal Specialization in the areas of civil trial law and business bankruptcy law. Mr. Quilling is an experienced receiver and has been appointed in many cases.


QUESTION	How is the Receiver and the legal and accounting professionals hired by him going to be paid?
ANSWER	The Order For an Appointment of an Interim Receiver entered by the Court on November 17, 2005 provides in paragraph 20 as follows:
	This Court Orders that all the costs of this receivership including without limitation the Receiver's fees and disbursements (including the amounts which the Receiver is obliged to pay others) and the fees and disbursements incurred by Bennett Jones LLP in carrying out its duties shall be a first charge on any assets recovered in the receivership herein, subject to approval of the quantum of costs by the Court. The Receiver shall have the right to apply to the Court for approval and payment of its fees and disbursements on an interim basis provided that 15 days notice shall be given to the defendants of any such application. The Receiver shall also have the power, if so advised, to move to have the receivership terminated and to be discharged as Receiver.
	What the foregoing means is that all fees and expenses have to ultimately be approved by the Court and when they are paid, they are paid out of funds collected by the Receiver.


QUESTION	Can the Receiver give me legal advice or should I hire a lawyer in this case?
ANSWER	The Receiver cannot and will not give anyone legal advice with respect to this case. Therefore, should you believe that you need a lawyer, you should hire your own and should certainly feel free to do so. However, you need to be aware that the Receiver is acting in the interests of all investors by trying to identify, locate and liquidate assets as quickly as possible, determine and pay only legitimate outstanding expenses, and be in a position to make distributions to investors as soon as possible. There is nothing that a lawyer which you might hire can do to either expedite that process or increase the amount that will ultimately be paid to you. The most likely thing a lawyer will be able to do for you is obtain information, either from the Court or from the Receiver. As to the Receiver, however, through periodic letters to investors and this web site, the Receiver will provide information to investors and, therefore, a lawyer should not be needed in order to obtain that same information for you.


QUESTION	What do I need to do?
ANSWER	Click here for instructions on what you should do.


QUESTION	How does a receivership work?
ANSWER	No two receiverships are ever exactly the same. However, the basic structure is that an independent person appointed by the Court (the Receiver) is to collect and liquidate assets traceable to investor funds. The receiver also sends claim forms to each creditor. Once the claims have been determined by the Court, the receiver submits a plan to the Court as to how to distribute the funds which the receiver holds. In almost every instance, the funds are distributed pro-rata to each person who has a valid claim. For instance, if there are $1 million dollars of claims and there is $100,000.00 of funds, each claimant would receive 10% of their claim.


QUESTION	When will I receive my claim form?
ANSWER	On December 24, 2005 the Receiver began mailing claim forms to all known investors. Click here to learn more about it.


QUESTION	When will I receive my portion of the funds? How much?
ANSWER	It is way too early in the case for the Receiver to project how much the distribution percentage will be or when it will ultimately be sent out. The good news is that based upon facts known to the Receiver at this time, it appears there will be funds available to distribute.