BURLEY: YOUR VOICE MATTERS
What You Need to Know |
|
WHAT YOU NEED TO DO
In April 2020, the Burley Tobacco Co-Op Board postponed the Special Meeting (where the Members of the Co-op were to vote on dissolution of the Co-op).
On June 9, 2020, the Burley Tobacco Co-Op, the McBrayer Law firm clients (Mitch Haynes, Scott Haynes and Penny Greathouse), and the Billings Law Firm clients (Greg Craddock) entered into a Settlement Agreement to settle and resolve in full: (1) Billings Law Firm’s efforts to have a special meeting of the Members of the Co-op to vote on the dissolution of the Co-op and the distribution of all of its assets to the Members (less liabilities/obligations of the Co-op and costs and expenses), and (2) the McBrayer Law firm’s client’s lawsuit (Haynes v. BTGCA) seeking, among other claims, judicial dissolution of the Co-op. The Settlement provides, among other items, that:
On June 10th, the parties asked the Court to approve that Settlement. After several hearings and rounds of briefing, on September 27th, the Court entered an Order approving the Settlement Class definition for the 2015-2019 Crop Years Members. The Court subsequently approved McBrayer’s Clients (Mitch Haynes, Scott Haynes and Penny Greathouse) as the Class Representatives and appointed McBrayer as Class Counsel. This gave preliminary approval to the Settlement. By order entered November 17th, The Court subsequently amended the Class Definition to also include the 2020 Crop Year Members (for a Class of 2015-2020 Crop Year Members).
Notice was approved by the Court in late November, and Notice was sent by the Third Party Administrator, Angeion, starting on December 1st .
On June 9, 2020, the Burley Tobacco Co-Op, the McBrayer Law firm clients (Mitch Haynes, Scott Haynes and Penny Greathouse), and the Billings Law Firm clients (Greg Craddock) entered into a Settlement Agreement to settle and resolve in full: (1) Billings Law Firm’s efforts to have a special meeting of the Members of the Co-op to vote on the dissolution of the Co-op and the distribution of all of its assets to the Members (less liabilities/obligations of the Co-op and costs and expenses), and (2) the McBrayer Law firm’s client’s lawsuit (Haynes v. BTGCA) seeking, among other claims, judicial dissolution of the Co-op. The Settlement provides, among other items, that:
- The Co-Op will be judicially dissolved pursuant to the parties’ agreement.
- That $1.5 million will be paid to a new, non-profit entity created for the purposes of helping and advocating for Tobacco Farmers.
- The Co-Op will distribute its net assets (after paying all liabilities/obligations, including the $1.5 million, and costs and expenses, including any award of attorney fees) to the 2015-2019 Crop Years Membership;
- That Billings Law Firm and McBrayer are both entitled to an award of attorney’s fees, in an amount to be determined/approved by the Court, but not to exceed 25% of the net proceeds.
- That any tort claims against the Directors for waste, abuse, breaches of their duties, misuse of monies, etc. (such spending $1 million hemp) are subject to a “forbearance covenant” which means that any liability for such claims will only be collectible to the extent that there is insurance proceeds available (i.e., no collection directly against the Directors).
On June 10th, the parties asked the Court to approve that Settlement. After several hearings and rounds of briefing, on September 27th, the Court entered an Order approving the Settlement Class definition for the 2015-2019 Crop Years Members. The Court subsequently approved McBrayer’s Clients (Mitch Haynes, Scott Haynes and Penny Greathouse) as the Class Representatives and appointed McBrayer as Class Counsel. This gave preliminary approval to the Settlement. By order entered November 17th, The Court subsequently amended the Class Definition to also include the 2020 Crop Year Members (for a Class of 2015-2020 Crop Year Members).
Notice was approved by the Court in late November, and Notice was sent by the Third Party Administrator, Angeion, starting on December 1st .
FARMERS MUST FILE A CLAIM AND SUBMIT A W-9 TO RECEIVE A DISTRIBUTION.This must be done by JANUARY 29, 2020. Also, ANY OBJECTIONS TO THE SETTLEMENT must also be filed by JANUARY 29, 2020. You can find more information on the settlement website: https://www.btgcasettlement.com/
Billings Law Firm and McBrayer Law Firm filed separate Motions asking the Court to award them attorneys fees, costs and expenses on January 15th. Billings Law Firm is asking for award of 7.5% of the net proceeds, along with approximately $24,000 in costs. McBrayer is asking for an award of 25% plus about $18,000 in costs. In no event shall the award of fees be greater than 25%.
Currently, there is a Fairness Hearing on February 24th. At that hearing, the Court will determine (1) whether the Settlement is “fair” and to give “final” approval to the proposed Settlement (i.e., whether to judicially dissolve the Co-Op, whether the distribute the net assets to the 2015-2020 Crop Years Members, and approve the Forbearance Covenant); and (2) whether to award attorney’s fees and costs/expenses to Billings Law Firm and McBrayer, and if so, in what amount.
Currently, there is a Fairness Hearing on February 24th. At that hearing, the Court will determine (1) whether the Settlement is “fair” and to give “final” approval to the proposed Settlement (i.e., whether to judicially dissolve the Co-Op, whether the distribute the net assets to the 2015-2020 Crop Years Members, and approve the Forbearance Covenant); and (2) whether to award attorney’s fees and costs/expenses to Billings Law Firm and McBrayer, and if so, in what amount.
As always, if you have any questions about this case, contact Nathan Billings.
You can also access these documents on a public Google drive folder by clicking here.
You can also access these documents on a public Google drive folder by clicking here.
