<p>Edgartown has the legal right to move forward with acquiring the Yellow House, a Boston attorney representing the town said this week.</p>
Edgartown has the legal right to move forward with acquiring the Yellow House, a lawyer representing the town said this week, despite a move by a member of the family that owns the property to block proceedings because of an ongoing bankruptcy case.
In a letter sent April 18 to an attorney for Benjamin L. Hall Jr., James M. Wilton of Ropes & Gray in Boston said an attempt to block the town action last week asserted a “baseless legal position” and the town’s efforts to take the house through eminent domain are not a violation of federal bankruptcy laws, in part because the property is owned in a trust.
Mr. Wilton’s letter calls for Mr. Hall’s attorney to withdraw an earlier letter opposing the town’s actions by 5 p.m. on Wednesday. Selectmen are scheduled to discuss the issue at a meeting Monday.
The legal back-and-forth comes on the heels of voter approval at town meeting and the town election last week to take the property at 66 Main street by eminent domain for $3 million. The day of the election, Mr. Hall’s attorney, Alexander L. Cataldo of Norwell sent a letter stating the town is prohibited from taking the house because of automatic stay provisions in federal bankruptcy laws. Mr. Hall filed for personal bankruptcy in 2015.
The Yellow House is owned by 66 Main Street Realty Trust, with Ben Hall Jr. and Brian M. Hall listed as trustees.
Meeting with town selectmen last Friday, town counsel Ronald H. Rappaport recommended that the board delay any action while the matter was reviewed by Ropes & Gray in Boston, a firm with an expertise in bankruptcy.
The response from Mr. Wilton forcefully rebuts the arguments put forward by Mr. Cataldo. “The demand letter contains no evidence that the premises constitutes property of the debtor’s bankruptcy estate or that the debtor holds a direct interest in 66 Main Street Realty Trust,” Mr. Wilton wrote.
He added that Mr. Hall has admitted through his actions that his interest in the trust, and the property itself, are not part of his bankruptcy estate. Mr. Wilton stated that on April 3, 2015, two weeks after Mr. Hall began his Chapter 11 bankruptcy case, the Yellow House was transferred from one trust to another without approval of the bankruptcy court.
Mr. Wilton also pointed to one of the town’s ongoing legal disputes with the Hall family trust over the property. Since July 2015, he said, the town and the trust have been involved in litigation over a historic district bylaw requiring minimum upkeep of buildings. “At no point during this litigation has the debtor or the trust filed any request to stay the litigation based on assertions that beneficial interests in the trust or the premises are property of the debtor’s estate,” the letter said.
It also noted that the Dukes County superior court has determined that Mr. Hall has violated state Rules of Civil Procedure “by asserting scandalous and baseless allegations,” and found that his conduct was “malicious and willful,” and awarded sanctions.
Mr. Wilton stated that if Mr. Cataldo does not withdraw his letter by 5 p.m. on Wednesday the town will “request clarification from the bankruptcy court on this issue and may seek sanctions if Mr. Hall responds by asserting the baseless legal position set forth in the demand letter.”
Selectman and board chairman Margaret Serpa said the board is scheduled to discuss the issue at a meeting on Monday, April 24.

Comments
Still in process but the
Neil Off IslandStill in process but the lesson is here: do not depend on a trust to protect your assets.
This must the "government can
Barry OThis must the "government can take what is not pleasing to the eyes of government employees" clause in eminent domain.
Mr. Hall has all ready been
Ken Edg.Mr. Hall has all ready been caught filing frivolous suits and ended up in cuffs. That wasnt a pretty sight. I guess some people think its all a game to waste taxpayers money.
I'd expect the town to
deshandra brown EdgI'd expect the town to prevail eventually, despite all the legal maneuvering from the Halls. What they may not have counted on is their actions of asset transfers could bring the 'microscope' of the bankruptcy court on the timing of these 'transactions' since they chose to use it as a way to stall the town's 'taking'. What a fool. He should have taken the $3 million for that dump. I'm sure one of the knowledgeable attorneys who have contributed to the comments here can tell us what happens when a bankruptcy judge sees asset 'transfers' or unlisted assets of someone who files for bankruptcy protections.
It is called Fraudulent
William ExPBA NY, FLA & HKIt is called Fraudulent Conveyance. If he has moved assets to avoid paying creditors, they can and will claw the assets back. In this case the asset has been monetized at fair market value by the town taking. The value in cash remains with the trust for creditors to go after.
What is this going to cost
Leon OB, N.Y.What is this going to cost the Town?? Legal Cost....??? 3 million for the yellow house and how much for Ropes & Gray and Rappaport??
Is this really worth the cost ??Who really benefits?
Relax. This stall tactic by
JB Cambridge/ChilmarkRelax. This stall tactic by the Halls is already collapsing. Ropes & Gray is top tier and the partner working this is one of the best. In baseball terms, he's a major leaguer. The Halls attorney, to be kind, is still playing little league ball. And it shows. Ropes & Gray's demand for the other lawyer to withdraw his letter is in essence a professional rebuke. My guess is Buzzy's lawyer not only withdraws his letter but, since he's not been paid, will also petition the court to drop him as a client. If not, Ropes & Gray will quickly have the bankruptcy court gut Buzzy's baseless defense.
JB, dont underestimate the
Lawrence Bluestone Esq. Newton, MaJB, dont underestimate the Halls... Major Leaguer's can always lose the "big game". I have been on both ends of similar litigation and this could go on for years.... Costing the folks of Edgartown millions. I hope that is not the case here.
We know all about Mr. Hall
Mike and Jim EdgartownWe know all about Mr. Hall and we are simply elated to find out that Ropes And Gray is involved. We can now enjoy the wonderful Summer that is upon us. His bark is bigger than is bite ...
Ropes and Gray is not the
Jordan EdgartownRopes and Gray is not the answer because this will be a long battle . For example, the folks at Coffins Field In Edgartown buckled under the weight of the Hall machine. They are now pennilsss!
The house does not look bad.
Joel Fleischman TisburyThe house does not look bad. Why is
This an issue. Mr Hall wants to sell - he
Is simply an American who respects private property. I can list dozens of property. I do to want a Coffins Field imbroglio-
This whole ordeal is like a
Islander On IslandThis whole ordeal is like a Soap Opera
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