NO.

DC-17-00183

ORIGIN RELEASING, L.L.C., § IN THE DISTRICT COURT

Plaintiff, g

vs. g
116m JUDICIAL DISTRICT

HANNOVER HOUSE, INC., g

Defendant.

W g

ORDER REQUIRING TURNOVER

The Court considered

AND APPOINTING RECEIVER
DALLAS COUNTY, TEXAS

the application for turnover after judgment, filed by

ORIGIN RELEASING, L.L.C., Plaintiff (“Applicant”), reviewed the papers on

and believes that applicant holds and is entitled to collect upon

file, all arguments,

a final, valid and subsisting judgment against HANNOVER HOUSE, INC,

Defendant (“Judgment Debtor”).

that the applicant is entitled t0 aid from this Court and

The Court finds

aPPOintS M Mda UM]! 2m

(a as Receiver and sets a $ 50° , bond.

Findings: Applicant has good faith reasons to believe that respondent owns

non-exempt rights to present or future property that cannot be attached or levied

upon by ordinary legal process or in other jurisdictions that would be subject to

ORDER GRANTiNG APPLICATION FOR PAGE '1

POST—JUDGMENT TURNOVER
collection. The appointment of a Receiver t0 locate, marshal, and administer assets is

justified because the Court believes that non-exempt assets exist, which Judgment

Debtor may be hiding. These assets cannot be reached or discovered by ordinary

means.

' '
‘u- ._' ... .i i'-
—
.uuln en o .
-.
. e o 1n

performan ‘
of specific duties which a sitting court cannot undertake, like serving

writs, levying n property, traveling throughout the state t0 locate and inspect

assets throughout the tate, delivering the propexty to sales lots, and advertising for

and locating prospective uyers, among other tasks. A master will conserve the

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resources of the Court 0n post dgment matters, including locating and liquidating

property. Since the Court cannot or r a witness to travel more than 150 miles, a

-
to travel to interview wit
‘

master is needed sses.

Appointment of a master will result in e need for fewer hearings, lower

attorheys’ fees, and will protect the economic int ests of both the debtor and

creditor.

The Master’s duties are limited to locating non-exe ‘

t assets and the

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of .~ v: ;.-
- 'ens against
records that determine the ownershi
:7
. a
,

ORDER GRANTING APPLICATION FOR PAGE 0A

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POST—JUDGMENT TURNOVER
 A master is able to immediately issue orders, rather than incurring the dela
required for the opportunity t0 be heard in open court. Otherwi , property,

'

evidence, and witnesses can easily disappear before a he g can be held. Plaintiff

requests that the Receiver be appointed er in Chancery, to have the broadest

powers allowed by the rules. ls is an exceptional case due to its complexity and

ed to enforce the judgment. Good cause exists to appoint a

the intensity

er. The master should be familiar with post judgment enforcement and is.

Judgment Amount. Applicant. owns an unpaid final judgment against

sum of $600,855.48; $102,051.56

respondent, dated Octobe 15, 2018, for the (i) (ii)

$25,000.00 for
for Plaintiff’s attorney’s fees for representation through trial; (iii)

representation through the Supreme CouIt of Texas in the event of an unsuccessful

post-judgment interest at
appeal; and (V) pre-judgment interest of $103,542.61 and

annum on amounts until fully and finally paid and

eighteen percent (18%) per all

costs 0f court.

aflowefbyfiaw.

The following are orders of this Court:

defendant,
1. Person placed under Receivership. The following is defined as a
respondent, debtor or Judgment Debtor, under this order:

ORDER GRANTING APPLICATION FOR PAGE a

3
POST-JUDGMENT TURNOVER
 Hannover House, Inc.
300 N. College Avenue, Suite 311
Fayetteville, Arkansas 72701

Inclusive of any subsidiary, affiliates and parent companies thereof.

Hannover House, Inc.

c/o James Carroll, Counsel of Record

Judgment Debtor required to comply with this order and to fullyc

ls ceooperat

with the Receiver and—Spccral—Masfer to complete his duties, including

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preparing and signing all documents needed to recover, seize, and sell
property. Any failure of this order to maintain parallel sentence structure is
to be ignored and the order given its plain meaning so as to make the order
enforceable. The Receiver and—Mastez—fiea agent; of this Court andam to be
treated with the same courtesy accorded to th'e Court

2. Appointment. M(ckM—X 62M (km whose

,
address is
Z7! Z739
Lam Narkkulbk Hiqkwnq RUN ‘Zo‘i GAr\ma,(‘<
7'5 6"“; 971

is appointed Receiver, to s’erve after posting a $ 5

=0” bond and takmg the
oath of office, pursuant to Sec. 31 002 of the Civil Practices and Remedies
Code of Texas (“statute”) of the non-exempt assets of Judgment Debtor.
”ML appemfefikasMastet
Emma, is also

Powers. The Receiver has full power and authority to take possession of all
non-exempt propeny of the Judgment Debtors that is in Judgment Debtors
actual or constructive possession or control.

Judgment Debtor is ordered to turnover all non- exempt cash interest on

Scalendar days of notice of their
deposits, and stock dividends, withinS
existence.

This order is limited to non-exempt assets, seems t0 state

even if it

otherwise. If Judgment Debtor is claiming any exemption, Judgment Debtor

is ordered to notify the Receiver of the exemption, immediately.
The
Receiver shall assume that property is not exempt, until the Judgment

ORDER GRANTING APPLICATION FOR PAGE 4

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POST—JUDGMENT TURNOVER
 Debtor exemption claimed, the legal and factual grounds for the
states the

exemption, and describes the property with enough specificity that a

constable can levy, based 0n the description.

The attached list is illustrative, and the Receiver/master’s powers are t0 be

liberally construed including:

a. Production and turnover. Ordering, from Judgment Debtor and

parties, t0 turn over of assets, evidence, and documents upon all
m
matters he feels pertain to compliance with this order, including every
debtor’s assets, unopened mail, the location 0f assets, values 0f assets and
all other financial matters pertaining to defendant, including the amount
of money which any defendant may need on a periodic basis to continue
the defendant’s business 0r t0 provide for the necessities 0f life;

b. Examinations and testimom. Scheduling hearings and meetings and

directing parties and witnesses to give testimony at such hearings and
meetings and to rule upon the admissibility of evidence at such hearings;

c. Administering oaths. Placing witnesses under oath and examining them

himself, or through his agents;

d. Compliance. Seeking compliance with this order by every respondent

and witness, by filing a motion for contempt and serving the person
accused of contempt with notice to appear before this Court and show
cause why that person shall not be sanctioned for contempt.

e. Disputes. If there be any dispute whether an asset is non-exempt, or

property of a respondent, the Receiver is authorized to take custody of the
asset until the Court can determine the rights of those claiming interests
in the asset.

f. Turnover of present and future, t0 the Receiver, at his office.

all assets.

Duty to supplement. Every respondent is ordered to turn over all of the

listed items, and all similar items. A11 portions of this order continue until
the judgment is paid. For example, the duties t0 disclose, supplement,
turnover, etc., continue. If the items are not presently in existence, 0r the

ORDER GRA NTlNG APPLECATlON FOR PAGE D

POST-JUDGMENT TURNOVER
 control of a respondent, all respondents with knowledge of such assets

are ordered to turnover the items to the Receiver, immediately upon

taking control. If a respondent does not have control of an asset, but
receives knowledge of its existence, that respondent is ordered to notify
the Receiver, in writing, immediately, by fax, personal delivery or
certified mail.

3. Judgment Debtor is ordered to turnover all non-exembt cash, assets in

financial institutions, interest 0n deposits, and stock dividends, within 5

calendar days of notice of their existence.

4. Duties to disclose and supplement. Judgment Debtor is ordered to fully

disclose to the Receiver all 0f its assets and to neither directly nor indirectly
interfere or impede the Receiver in the performance of his duties under this
order. Exempt and non-exempt must be disclosed, so that the exempt
assets

status of the property can be detennined. Judgment Debtor is ordered t0

supplement all disclosures, in writing, within five days of knowledge 0f
infomation required disclosed by this order.

5. Law Officers to Every security officer, constable, deputy constable,

assist.

sheriff, deputy sheriff, and every other peace officer with notice of this order

is authorized to accompany the Receiver t0 any location

designated by

the Receiver where Receiver believes assets 0r documents of Judgment

Debtor may be of a writ of execution’s having
located, without the necessity
been issued, and is ordered to prevent anV person from interfering with the
Receiver (or any person under the direction of the Receiver) from carrying
out any duty under this order or interfering with any property in control of
the Receiver, 0r ay propelty subject t0 this order. The Receiver is authorized
to direct any sheriff or constable to seize and sell property under writ
of
execution 0r t0 assist the Receiver under a writ of turnover.

If the Receiver/Master pays the officer’s fee, the officer shall accompany the
Receiver/master when the writ is served and executed.

6. Access to assets. The Receiver is authorized to take all action necessary to

gain access to real property, leased premises, storage facilities, mail, and

ORDER GRANTING APPLICATION FOR PAGE 6

POST-J LUDGMENT TURNOVER
 safety deposit boxes, in which real or personal propeny of Judgment Debtor
may be situated, whether owned by Judgment Debtor or not.

7. Third party liability. The Receiver, and all persons acting under the direction
0f the Receiver, are immune from liability for all actions taken by them, to
the extent that such actions are permitted by this order.

8. No interference.Every person with notice 0f this order is ordered t0 assist

the Receiver and not to interfere with any property in the Receiver’s control
or subject to this order, and is ordered t0 assist and not to interfere with the
Receiver in the carrying out of his duties.

All third parties hold Judgment Debtors property are ordered to

who
immediately notify the Receiver, and to deliver the property within 3
working days of demand form the Receiver.

A11 third parties are ordered to immediately notify the Receiver if they
discover the existence of property, or of facts which might lead to the
discovery of property in which any defendant has any interest.

Notice to third parties. The Receiver, to the exclusion of Judgment Debtors,

is the only party entitled to possess, sell, liquidate, and otherwise
deal with

Judgment Debtor’s non- exempt property. Once third panics receive notice
of this order, they may be subject to liability if they release property to
Judgment Debtors, without the Receiver’s prior wn'tten consent.

9. Master in Chancefl. The Receiver is also appointed Master in Chancery

under Rule....171 Texas Rules of Civil Procedure, and shall have and exercise
,

the fullest and dest powers under the rule, including:

a. Production and turnove . rdering the turnover before him of assets,

evidence and documents n all matters he feels pertain to

ORDER GRANTING APPLICATION FOR

POST—J UDGMENT TURNOVER
 twt’s business 0r to provide for the necessities of life;

b. Examina and testimonv. Scheduling hearings and meetings and

s

directing part1 and witnesses to give testimony at such hearings and

meetings and to le upon the admissibility of evidence at such

hearings;

c. Administering oaths. Placin witnesses under oath and examining

them himself, or through his ag ts;

d. Binding effect of Master’s order. order from the Master, made

pursuant to this order, is a Court Order.

10. The Receiver/Mastcr, pursuant to Ruk—Hi—ef—the Texas Rules of Civil

Procedure and the turnover statute, is authorized to fssue—oréerm:

a. Disable property belonging to any respondent or t0 place the property

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into storage;

b. Insure propelty taken into custodial egz‘s;

c. Hire assistants and change the locks to premises or assets belonging to

every respondent so 'as to exclude interference with Recelver’s
custody of the premises;

d. Hire realtors and sign earnest money contracts, with the sales to be

approved, then confirmed by the Court.

e. Hire assistants to move property belonging to every respondent or aid

the Receiver in taking possession, custody and control of a
Respondent’s property;

f. fl. Order providers of global positioning (GPS) and

satellite

tracking information, to provide information that might assist the

Receiver in locating Judgment Debtor’s assets, or the location of a
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witness; 4

ORDER GRANTING APPLICATION FOR PAGE 8

POST-JUDGMENT TURNOVER
 g. Re-direct Judgment Debtor’s mail to the Receiver’s office and open
allmail directed to Judgment Debtor. The Receiveralm-aster shall hold
the mail, after opening it (if he wishes), but has no duty t0 deliver the
mail to Judgment Debtor;

That mail which the Receiverlmasta wishes to return to Judgment

Debtor may be picked up by the Judgment Debtor at convenient
times and places;

Order Judgment Debtor t0 re-direct his mail, unopened, to the

Receiver/master;

h. Order providers of utilities, telecommunications, and telephone, cell

phone, cable, intemet, data services, internet website hosts, satellite

television services, and all similar services, and financial institutions
compelling the turnover of any information that the Receiver and
master believes might prove 0r lead t0 the discovery 0f the existence
and location of Judgment Debtors whereabouts or assets, including
account infonnation, telephone numbers, names, service addresses,
telephone numbers, IP addresses, call detail records, payment records,
and bank and credit card information. Such orders shall be directed t0
the entity from which the information is sought and describe, as
specifically as possible, the precise information requested with the
dates for which the information is required, which shall not be more
than one year before the issuance 0f the Receiver/master’s request,
unless specifically stated in the request or attached letters.

This Order specifically serves as the court order required by 47 USC §

551, and satisfies all obligations of the responding patty to obtain or
receive a court order prior t0 disclosing material containing personally
identifiable information 0f the subscriber and/or customer.

The disclosure of information pursuant t0 this Order is not a Violation

of PUC Substantive Rule 25.272. This Order satisfies the law,
regulation, or legal process except to the Proprietary Customer
Information Safeguards found in PUC Substantive Rule 25.272(g)(1).

ORDER GRANTING APPLICATION FOR PAGE 9

POST-JUDGMENT TURNOVER
 i. Credit The Receiver/master may order any Consumer
bureaus.
Reporting Agency, as defined by the Fair Credit Reporting Act
(“FCRA”) section 16 USC § 1681b(f), t0 provide consumer reports 0n
respondents and witnesses, as allowed under FCRA §1681b(a)(1).
Judgment Debtor is ordered to provide all authorizations needed to
release the information.

j. The Receiver may collect all accounts receivable, and rental or lease
payments, presently due, 0r due in the future.

k. File interim and final reports, which become final unless objected to

within ten days.

11. Internet sites, domains, telephones, etc.

a. Passwords, PINS, and keys. Judgment Debtor is ordered to deliver a

list to the Receiver, Within five days 0f receipt of a copy 0f this order,

a_copy of all keys, and a list of all personal identification numbers

(PINS), passwords, and combinations, with a clear list explaining what
each key, PIN, etc., opens, where to locate the items to Which the keys
and PINS, etc., are related, and what is contained in the items to which
the keys, PINS, etc., are associated.

b. Only the Receiver maV change keys and codes. No key, password,
.PIN, etc., may be changed without the Receiver’s pfior written
consent.

c. Telephone numbers. The Receiver is authorized t0 redirect,

lease, or sell all telephone numbers belonging to any defendant.

12. Duty to maintain. The Receiver has n0 duty to maintain, guard, or insure

property taken into custodia legis.

13. Receiver’s fees. Receiver himself fees not less than 25 percent of
may pay
all proceeds coming into his possession (before deducting out of pocket

ORDER GRANTING APPLIC ATION FOR PAGE

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POST-JUDGMENT TURNOVER
 costs), which the Court finds to be fair, reasonable, and necessary fee, and
distribute allremaining proceeds t0 plaintiff s attorney in trust for the benefit
of plaintiff (not to exceed the total payoff 0f the judgment), without any
further order. If Receiver must pay a prior lien, Receiver shall receive his fee
0n the portion recovered for the benefit of the lien holder, as the payment
benefits the plaintiff and advances collection of the judgment. Receiver’s
fees in excess of 25 percent 0f the judgment may be awarded after
application and a separate order. If the defendant files bankruptcy, the
Receiver/master’s fee shall be equal to 25 percent of the debt owed at the
time the bankruptcy is filed. The Receiver’s fees and costs are taxable court
costs.

14. Changes in employment or income. Judgment Debtor is ordered to

notify the Receiven‘master, in writing, 0fchanges in employment or

all

income, before the change becomes effective, and not more than ten days
after, if the Judgment Debtor had n0 advance notice. This
includes

promotions, new contracts, bonuses, incentives, stock purchases, and

changes of responsibility. The notice must state the full name of the third
patty employer, whether the employment relationship is that 0f employer
and employee or independent contractor, and shall give the full names,
addresses and telephone numbers (with extensions) of the employers and
supervisors, and the rates of pay.

15. Changes in addresses and contact information. Judgment Debtor is ordered

t0 immediately notify the Receiverylmaster, in writing, 0f all present

addresses (home, work, deer lease, fishing camp, etc.), telephone numbers
(at every address), cell phone numbers, e-mail addresses,
and to immediately
notify the Receiver, in writing, of all changes in the information.

16. Changes inbanking information. Judgment Debtor is ordered to notify the

Receiverflmager, in writing, of all changes in the banking and financial
institutions used by that defendant, within ten days of the change.

17. Tax returns, W-2’s, 1099’s and refunds. Judgment Debtor is are ordered to
deliver t0 the Receiverlmasfcr, within ten days, copies 0f all tax returns, W-2
and 1099 statements, and similar records. Every defendant is ordered to

ORDER GRANTING APPLICATlON FOR PAGE 1 I

POST-JUDGMENT TURNOVER
 immediately turnover to the Receiver all tax refunds, as well as any refund
or credit from any other entity, and to sign all documents needed to

accomplish the turnover.

18. Probate estates. Judgment Debtor is ordered to notify the Receiverflmager, in

writing, of interests in probate estates, within ten days of the Judgment
Debtor’s notice of the interest. The Receiver may retain counsel to open
a probate estate and prosecute its handling.

19. Stock dividends. Judgment Debtor is ordered t0 notify the Receiv’erfmaster,

in writing, 0f all stock or share dividends (or other income from or increase
in stock values), within ten days of the Judgment Debtor’s receipt of notice
of the change.
20. Copies of bills and statements. Judgment Debtor is ordered to deliver to the
Receiverhaaster, copies of all bills, invoices, réceipts and statements from

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banks, stockbrokers and finanCial institutions, within ten days of the
Judgment Debtor’s notice of the change.

21. IRS Returns. Judgment Debtor is ordered to immediately provide the

Receiver With written authorization for the Internal Revenue Service, or
anyone else, t0 release tax and other records, and t0 supplement the
authorizations, if requested.

22. Duties if anyone resists the Receiver/master’s orders, based on the advice of
third parties. witness or person resisting an order or request of the
Any
Receiver opmasfer, based On legal or other advice, is ordered to give the full
name, address, fax number, e-mail address, cell phone number, and direct
telephone number for each person giving that advice and to instruct each
person t0 immediately contact the Receiver.

23. Judgment Debtor May Not Spend Non-Exempt Funds Without The
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Receiver’s Pn'or Written Permission.

24. Writs. Writs of turnover, issued pursuant to this order, shall not be limited in
time 0r have an expiration date. Those serving the writs shall return them to
the Receiver, not the clerk, unless otherwise instructed. More than one writ

ORDER GRANTING APPLICATION FOR PAGE 1,7

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POST-JUDGMENT TURNOVER
 of turnover may be issued and outstanding at any time.

25. The Receiver is considered a of public

duties, pursu . 81 of the Texas Labor Code, and may subpoena
ment records from the Texas Workforce Commission.

26. Duty to maintain. The Receiver has no duty t0 maintain, guard, or insure
propefiy taken into custodia legis, or to maintain or pay any lease, nor shall
Receiver be required t0 pay any mortgage, lien or assessment, defend against
any lawsuit, pay any tax or fee, maintain any insurance coverage or have
any obligation except as specifically ordered.

27. Certification of Copies. The Receiver may certify copies.

28. Shortened time limits maV be set. The Receiver may require answers to

questions, or additional turnover and production, in shorter time periods than

set by the rules of civil procedure.

29. Unclaimed funds. The Receiver may collect all unclaimed funds.

30. Air miles and reward program benefits. The Receiver may collect, sell, or
assign the Judgment Debtor’s rights to all air miles and rewards programs.
W‘- Aflhm’n’m (Me. Qawdeé~ 4« SM. Mona 1n Ht
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Signedon . .

ORDER GRANTING APPLICATION FOR PAGE 1’

POSTJUDGMENT TURNOVER