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 (47)
Comments
Comment policy »