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In re Hovis

United States Bankruptcy Court, D. South Carolina
Jul 29, 2005
Case No. 97-01929B, Adversary Complaint No. 98-80220B (Bankr. D.S.C. Jul. 29, 2005)

Opinion

Case No. 97-01929B, Adversary Complaint No. 98-80220B.

July 29, 2005


ORDER DENYING GILLIAM MOTION FOR JOINDER AND TO INTERVENE AND MOTION TO ALTER OR AMEND


This matter comes before the Court pursuant to the Motion for Joinder or to Intervene in Adversary Proceeding ("Motion for Joinder or to Intervene") and the Motion to Alter or Amend Judgment ("Motion to Alter or Amend") filed by interested party William J. Gilliam ("Gilliam"). The parties to this adversary, General Dynamics Corporation and Electric Boat Corporation (collectively, "General Dynamics") and W. Ryan Hovis, Trustee for Marine Energy Systems Corporation, ("MESC Trustee") timely objected to the Motion to Intervene and Motion to Alter or Amend. Having heard the parties to this matter and reviewed the pleadings submitted, the Court determines that Gilliam's Motion for Joinder or to Intervene is properly treated as a motion to intervene in this adversary proceeding pursuant to Federal Rule of Civil Procedure 24(a), made applicable to this proceeding by Bankruptcy Rule 7024, and any characterization of the motion by Gilliam as a "motion for joinder" under Federal Rule of Civil Procedure 20 is improper. See Premier Foods of Bruton, Inc. v. Orlando, 192 F.R.D. 310, 312 (M.D. Fla. 2000) (holding "nonparty cannot on its own motion join as a party under Rule 19 or 20).

To establish a right to intervene under Rule 24(a), Gilliam must (1) submit a timely motion; (2) demonstrate a "direct and substantial interest" in the property or transaction; (3) prove that the interest would be impaired if the intervention was not allowed; and (4) establish that the interest is inadequately represented by existing parties. In re Richman, 104 F. 3d 645, 659 (4th Cir. 1997). In this case, the Court finds that Gilliam's Motion for Joinder or to Intervene fails because his alleged interest, if any, is adequately represented by the MESC Trustee.See 10 Collier on Bankruptcy § 7024.03 (15th ed. 2005) (stating "creditors seeking to intervene in adversary proceedings begun by the trustee have a `heavy burden' to show inadequacy of representation"); accord In re Thompson, 965 F.2d 1136, 1142 (1st Cir. 1992). It is therefore,

ORDERED that Gilliam's Motion for Joinder or to Intervene is hereby denied with prejudice;

IT IS FURTHER ORDERED that Gilliam's Motion to Alter or Amend is hereby denied with prejudice as moot.

AND IT IS SO ORDERED.


Summaries of

In re Hovis

United States Bankruptcy Court, D. South Carolina
Jul 29, 2005
Case No. 97-01929B, Adversary Complaint No. 98-80220B (Bankr. D.S.C. Jul. 29, 2005)
Case details for

In re Hovis

Case Details

Full title:In Re: W. Ryan Hovis, Trustee for Marine Energy Systems Corporation…

Court:United States Bankruptcy Court, D. South Carolina

Date published: Jul 29, 2005

Citations

Case No. 97-01929B, Adversary Complaint No. 98-80220B (Bankr. D.S.C. Jul. 29, 2005)