<p>One day after Edgartown voters cleared the way for the town to acquire the Yellow House, Benjamin Hall Jr. moved to block any eminent domain proceeding.</p>
One day after Edgartown voters cleared the way for the town to acquire the Yellow House, the chief spokesman for the Hall family has moved to block any eminent domain proceeding through legal channels, citing his personal bankruptcy.
In a letter sent to Edgartown town counsel Ronald H. Rappaport Thursday, an attorney representing Benjamin Hall Jr. said the town is prohibited from taking the Yellow House due to the automatic stay provisions under federal bankruptcy laws. Mr. Hall filed for personal bankruptcy in 2015.
“Any action by the town or the board or any other person on behalf of the town of Edgartown could be deemed an intentional violation of the automatic stay,” wrote Alexander L. Cataldo, a Norwell attorney. The letter is dated April 13, the same day Edgartown voters took final action at the polls to approve the $3 million purchase or taking of the run-down Main street property.
The Yellow House is owned by 66 Main Street Realty Trust, with Benjamin Hall Jr. and Brian M. Hall listed as trustees.
Meeting with the Edgartown selectmen at the town hall Friday morning, Mr. Rappaport recommended they delay any action while the matter is reviewed by independent counsel at Ropes and Gray in Boston with an expertise in bankruptcy. Mr. Rappaport said he had spoken with someone at the firm already.
“While it seems nonsensical that this would violate an automatic stay because we would in effect pay $3 million . . . it would be advisable to get their advice before we sign an order of taking,” Mr. Rappaport said. “Their advice and my advice is we should just let them analyze the situation and take whatever steps necessary before we take the property.”
Selectmen agreed, and board chairman Margaret Serpa said the selectmen would wait for legal advice and plan to discuss the matter at their next meeting on April 24.
“I think we probably indicated in various of our meetings that this would not be a straight line and it won’t be a straight line,” Mr. Rappaport said. Responding to a question from Mrs. Serpa, he also said that if for any reason Mr. Hall Jr. were to sell the property, the town could still take it because the eminent domain vote involves the property and not the owner.
“You can’t defeat the town meeting vote because it was property specific,” he said.
“The saga continues,” Mrs. Serpa said.
Comments
Aren't fines accruing on a
deshandra brown EdgAren't fines accruing on a daily basis for lack of maintenance in the historical district? Perhaps its time to change the fines to $1000.00 per day.
An idle question. Can the
Neil Off IslandAn idle question. Can the town sue the Hall family for willfully neglecting maintenance on the Yellow House which (whether intentioanl or not) has had the effect of degrading the value of nearby properties?
Have the property values of
J. J. EdgartownHave the property values of the neighbors property gone down? At best, that is a specious argument.
I asked a question, making
neil Off IslandI asked a question, making your counter specious. If you need a rephrasing, do neighbors feel the condition of the yellow house affects the marketability and attractiveness of their business or property? Come back when you have an answer.
I am a trial lawyer by trade
Mike S New Jersey/EdgartownI am a trial lawyer by trade and Ben Hall should contact the ACLU. This is about to cost a tremendous amount of money and it will get national attention -fyi -I do not believe that the Town council is doing their homework or is this a simple ruse to run up the legal bill - which will last years. Edgartown get wise!
Its apparent you have no
deshandra brown EdgIts apparent you have no experience with respect to eminent domain. The property abuts the town parking lot. The property abuts the town hall building. We need room to expand the parking lot for 'the greater good'. We need room to expand the town hall for the 'greater good'. (and it happens to be an eyesore neglected by the owner) PS- this isn't New Jersey where it would qualify for 'urban renewal' taking. And it's town counsel NOT town council. (a town council is how you govern in NJ. HERE we have a board of Selectmen..or selectwomen) And our town counsel happens to be a brilliant attorney who got us the previously private owned water utility for $1.00. I wouldn't bet against him.
What civil right is being
Neil Off IslandWhat civil right is being infringed ... to purchase prime property in the center of a business district, then be allowed to neglect it? I would ask, did the Hall's purchase the property to hurt Edgartown or are they incompetent and require placing under conservatorship?
No offense, Mike, but the
JB Cambridge/ChilmarkNo offense, Mike, but the word you wanted to use in your comment above is "counsel" not "council". Really a basic thing any lawyer would know. Makes me wonder if you're really a lawyer. I'm a senior partner in my firm and I provide counsel to my clients, not council.
If you could list your
Me HereIf you could list your credentials, it'd be a lot easier for those of us who are actual residents (as opposed to seasonal Jerseyites) to take you more seriously in your commenting. You may be on to something, but, it's hard to know based on the information provided.
I was under the impression
chris Lamonica EdgartownI was under the impression the Rapport was the best - I saw this coming. Ben Hall is a pawn.
Time for new counsel......and
Carl EdgartownTime for new counsel......and what is this costing us???? $$$$
Ben, I wish you the best and
Clair D. EdgartownBen, I wish you the best and it is awful what they are doing to you.
What is Rapport & Co. costing
Charles Klein EdgartownWhat is Rapport & Co. costing us? Is Rapport up for this challenge.? With all do respect, we should get a Boston Law firm because I see a long, expensive legal battle. We do not need a sleepy law firm who have clearly underestimated the plaintiff.
Hi Charles "sleepy law firm"
Ken M Edgartown Ma. & Sanibel Fl.Hi Charles "sleepy law firm" Your kidding-right? One day after Ben Hall raised the Bankruptcy issue Rappaport hired Ropes & Gray in Boston. (probably the best bankruptcy firm in the state). You can't just do that without having spent a lifetime building up law firm contacts. Rappaport has litigated several cases against the Hall's and has won them all. (Google it). Finally, Hall's attorney has not been paid and the Bankruptcy court wants to turn Hall's case from a Chapter 11 reorganization into A Chapter 7 liquidation. We are in good hands with Rappaport at the helm.
Mr Hall.... I think you have
Jacob ChilmarkMr Hall.... I think you have a great case here!!!! Don't back down...
Please describe what case he
Kelsey MVPlease describe what case he has. I see nothing. Time catches up and in this case it has. The citizens of our town made a collective wise decision. The less this island has of Hall issues the better.
Mr. Hall do not let them push
Tom W. EdgartownMr. Hall do not let them push you around. Call the media!!
Mr. Donaroma does such a
Christian Migliore NYC/EdgartownMr. Donaroma does such a beautiful job on all his properties in Edgartown and if he has the chance , he will make this eyesore the jewel of Main Street. Please step Mr. Hall and let Mr. Donaroma and his staff work magic.
I have done some research and
Mike C. Edgartown/MelroseI have done some research and we should contact Ropes and Gray in Boston. They have experience that the current council do not have. We need to look at this differently...
This is getting very old! I
Steve On islandThis is getting very old! I have been seeing this go on with them my entire life and I hope I see them finally stopped in my life time!
The Hall Family is skirting
John Q Islander here and thereThe Hall Family is skirting the law in order to continue letting ALL of thier properties go to pot. The Hall family should be ashamed of how they disregard the integrity of the island.
I have been saying all along
Islander On IslandI have been saying all along Buzzy should sue. Looks like he's had it up his sleeve this whole time and just waited to play the trump card. Good for you Buzzy, protect what's yours.
There are other options,
Washashore West TisburyThere are other options, should this one prove to be too expensive - including one that involves the state's AG office, and would not cost local taxpayers money: The Massachusetts Abandoned Housing Initiative, operated by the state's Attorney General's office: http://bit.ly/2pCqXuP
That looks like a great
Bob EdgartownThat looks like a great program and answer to the Hall's all over the island. I hope the people in power read this and know about this.
That is absurd. So, if we
Kevin Snow EdgartownThat is absurd. So, if we dislike the look of any house we can take it ? Do you know what that means? The few who govern will swing their hammer and force people out of their homes just because they can afford to mend a fence or replace shingles. Be careful what you wish for...
Except in this case none of
RT VHExcept in this case none of the structures in question have people living, or even working in them. Each are derelict, neglected, and are not only eyesores, but in some cases a danger to the community. The theater at the beginning of Circuit should have steel fence around it as it is unstable, and if it did fall over could easily injure or kill someone. I think you meant "can't afford", and again, the Hall's certainly can afford to make repairs, and could have done so years ago when the costs would have been significantly less than now due to the ongoing water damage which has only further eroded the structures.
As a Lawyer by trade......My
Mike S. New Jersey/ EdgartownAs a Lawyer by trade......My professional opinion Estimation this will cost the Town Of Edgartown in the 5-8 million range all said and done to fight this. This does not include any renovations or work to the property.
Hi Mike,
Betty Ann Edgartown/ BostonHi Mike,
I agree that this could cost the Town a tremendous amount of resources that could be used elsewhere... I hope the Town knows that this could go on for many years with a hefty price tag... and at the end of the day who really wins???
I'm a senior partner on the
JB Cambridge/ChilmarkI'm a senior partner on the litigation team of a global law firm. I'm not sure what your rates are in New Jersey but in our part of the world this is no where near a $5-8 million legal tab. Buzzy will blow through his retainer with his small town lawyer in Norwell well before the town hits $50k in legal fees. Even in choosing an outside counsel Buzzy went cheap. Threatened lawsuits are a game of attrition, bluster, and who has the deeper pockets. Ropes and Gray will bury the Halls. The Halls have holes in their pockets and no cash; either to fix their properties or pay their outside lawyers. His side is all bark and no bite, to state the obvious. And his lawyer won't work for free.. Lastly, this is not a national news or ACLU case despite your earlier claims. It's the sad story of a generational hand me down family in decline, clinging to the past.
J.B. I agree with most of
Betty Ann Edgartown, MaJ.B. I agree with most of your points. However, don't under estimate Mr. Hall and the family...
My sister in-law lives in a lovely community in Edgartown callled "Coffins Field"
They have been involved in a real estate issue with Mr. Hall for some time and costing them several thousands of dollars for a small little Association community.
I know the Hall family and I think they are wonderful people and just need to re assess a few things. Hopefully that will happen and this will all go away.
Best comment of them all,
Max Hartshorne South DeerfieldBest comment of them all, councilor!
I wish I had Bens problems. I
Long tiine resident All lslandI wish I had Bens problems. I know if I needed to file bankruptcy I would surely sell a junk house for $3 million
How many lawsuits does Mr.
Sam EdgartownHow many lawsuits does Mr. Hall have pending? Is it just the movie house in OB and this yellow house? We all should now what we are dealing with .
How can he have filed
Michael OBHow can he have filed bankruptcy and still have money for legal fees?
Makes me think his bankruptcy
KevinMakes me think his bankruptcy filing was all a trick.
That's easy. When a party
Linda Tolland CTThat's easy. When a party files for bankruptcy creditors are prohibited from taking action against them while they organize and prioritize their debts. The first priority goes to attorneys. The legal fees often exceed what it would cost to pay the debts. On the other hand, the bankruptcy court could remove the automatic stay on this property so it would sell. The court can then control how the income is distributed.
Who are the Halls and what is
Joanna ChilmarkWho are the Halls and what is the matter with them that they own so much prime property that they let go to hell?
Wouldn't the sale of this
Cara Slattery Braintree / West TisburyWouldn't the sale of this property tale care of a significant portion of the debt noted in the original Chapter 11 filing?
According to the documents, Mr. Hall owes a total of $2.3 million to 36 creditors. The largest portion, $1.1 million, is debt owed to the Martha’s Vineyard Savings Bank, secured by several properties, including his West Tisbury home. The bank has begun foreclosure proceedings on the home and other properties controlled by Mr. Hall.
The next largest debt is $994,000 in unsecured debt owed to family trusts and corporations. Records show Mr. Hall borrowed a total of $994,000 against his family’s business and real estate holdings dating back to 1991.
Also listed is personal credit card debt of $138,772, and $11,081 owed in federal, state, and local taxes.
Just imagine the cash flow if
deshandra brown EdgJust imagine the cash flow if the vacant properties they inherited had been rented to tenants. Leaving them vacant without a tenant all these years doesn't seem like a brilliant strategic move does it. Prime locations such as this, the OB movie theaters, and the former liquor store would certainly generate cash flow.
Setting aside the eyesoar,
O All overSetting aside the eyesoar, the Hall's, and the legal challenge at hand, what has changed in Edgartown requiring this expense to accommodate town staff?
Why do we suddenly need more space for town offices?
Seems to me the Halls are
D.A. OBSeems to me the Halls are trying to do nothing but delay, delay, delay until the bankruptcy is finalized before becoming liquid. As of now, the $3.0 million would surely go to satisfy creditors, and it would seem the Halls would rather screw them, than pay what they owe. So delaying in Edgartown, Oak Bluffs and elsewhere is their answer. Ropes & Gray is an excellent firm, but this need not be the only answer. There are dozens of boutique litigation firms in Boston that can handle this mattter just as easily without the small town connection and a giant tab for the effort.
If Mr Hall wants the sure
Neil Off IslandIf Mr Hall wants the sure-fire way to prevent eminent domain, he should simply pay a crew to go in (today would be nice) and start maintenance and repairs. Then people likely will praise his role in the community instead.
If the yellow house is owned
Bill Knight Vineyard HavenIf the yellow house is owned by a real estate trust, and Mr. Hall is only the trustee, and probably one of the beneficiaries, then Mr. Hall is not the owner of the Yellow House. The Trust is a separate legal entity and as such the separate owner of the Yellow House. If that is the case then it is my opinion that the personal bankruptcy of Mr. Hall should not affect the title of the property. It is not his property. The question then is whether the bankruptcy of a future beneficiary of a trust can affect the property held by the trust, and I think that the bankruptcy would not.
You might consider applying
Ken M Edgartown Ma. & Sanibel Fl.You might consider applying for a position at Ropes & Gray. Your opinion expressed above is virtually identical to the one expressed later in the week to the Town of Edgartown by that prestigious law firm.
Unless you are deep in he
D Can EdgartownUnless you are deep in he woods one's ownership of property comes with legislated and implied social responsibilities. Someone should establish a web site to report bad neighbors. Unless they are truly sociopaths Shame works sometime.
As a former Coffins Field
J.K. Edgartown & FORMER Coffins Field ResidentAs a former Coffins Field resident we spent a small fortune fighting Mr. Hall in real estate litigation and it continues- If I was to guess we spent close to half a million dollars to date. The Edgartown Yellow House in my estimation will indeed cost millions excluding the sale price. I hope that Edgartown is ready for a fight because this will go on for years and you can never put a budget or true cost to litigation. Good luck and hopefully all will work this out in a reasonable and timely fashion.
It's one's own business what
Dean Rosenthal EdgartownIt's one's own business what you do with how you take care of any property you own (unless there are restrictions in those neighborhoods, like historic districts, etc.), but let's get one fact out of the way. This house is an eyesore as are many other Hall properties on Martha's Vineyard. Put simply, they have no pride in their family name or in keeping the public spaces they own on the Island clean and safe and updated. One or two sales of the multiple properties they own would take care of certain outstanding debts and allow for them to join the community in taking pride of where we all live. It is a shame that they have pride in the neighborhoods that their neglected, rundown buildings and properties inhabit. At Edgartown town meeting, one individual suggested we thank Ben for the park on Main St. Sorry, not good enough, I will never clap for them – with great opportunity comes great responsibility, they shirk that responsibility. Buzzy, Ben, and the rest of the pathetic, disreputable bunch have shown they don't care one whit about beautifying and keeping up properties in public spaces. That is REALITY because you can look at the buildings and the properties. The conclusion is that they care nothing for Martha's Vineyard. Here's what they contribute to our community: tens and hundreds of thousands of dollars to legal bills that the taxpayer coughs up. So this is my message if any of them are reading: have some self-respect for once, you will never be fully respected, anyway, but it would be a start. Or maybe you just want to continue to you-know-what on us all for the rest of our lives.
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