Brewer was successful in litigation.
Southmark has recovered a total of $5,953,834 since January 1997 in connection with a successful outcome in Securities and Exchange Commission v. Drexel Burnham Lambert Incorporated, et al. Further, Southmark recovered $580,918 in the settlement of Harmon Envicon Associates v. Southmark Corporation.
In late May, 2000, Southmark was pursuing two claims in which the potential recovery is approximately $3 million in the aggregate.
In Southmark Corporation v. Shulte, Roth & Zabel, L.L.P., Southmark has a judgment in the amount of $1 million in its favor, plus pre-judgment interest. The defendants in this action have obtained an irrevocable standby letter of credit in favor of Southmark in the amount of $1,419,652.22 on December 9, 1999 to cover the required bond pending defendants' appeal of the judgment. The judgment has, in fact, been appealed to the Fifth Circuit and it is expected that oral arguments on the appeal will be heard in the next six months.
In Southmark Corporation v. Jerri Coppa-Knudson, Liquidation Agent, the bankruptcy court following a trial in November 1998 determined that Southmark has a claim for damages against Double Diamond Ranch Limited Partnership in the approximate amount of $1,251,868. The bankruptcy court also ruled, however, that Southmark is entitled to no distributions of assets on account of that claim in that the Partnership has no right of contribution against its affiliated debtors. Southmark appealed this ruling and the amount of Southmark's damages to the District Court. On March 21, 2000, the District Court affirmed the bankruptcy court's calculation of Southmark's damages at $1,251,868, but vacated the portion of the bankruptcy court ruling denying the Partnership's right of contribution. Brewer expected that this issue should be resolved in the next few months.
However, I cannot locate anything regarding successful resolution to these cases.
