Friday, April 8, 2011

Mastro Case: Judge Says Guardian Can't be Paid From Funds for Creditors

A federal bankruptcy judge closed a short, strange chapter Tuesday in the long-running bankruptcy saga of former Seattle real-estate magnate Michael R. Mastro.

Judge Marc Barreca turned down a bid by the guardian for the now-incapacitated Mastro to pay her, and her lawyer, from funds administered by Mastro's chief adversary, court-appointed trustee James Rigby.

That's the same pot of money from which Mastro's many creditors might one day recover a fraction of their losses. The bankruptcy is Washington's largest ever, with Mastro reporting debts of $570 million.

Mastro's guardian, former state Supreme Court Justice Faith Ireland, asked last week for compensation from Rigby's funds because she said Mastro couldn't pay her. She also said she needed her own lawyer because Mastro's longtime attorney had a conflict of interest:

As guardian, she argued, she's required to act in Mastro's best interests. However, she added, Mastro's lawyer is obligated to follow Mastro's instructions from before he was incapacitated — even if they aren't in his best interests.

Ireland's lawyer, Mark Walters, acknowledged in court that the proposal and circumstances were "incredibly unusual — I almost can't believe it."

Full Article and Source:
Judge Says Mastro Guardian Can't be Paid From Funds for Creditors

See Also:
Strange New Twist

9 comments:

Barbara said...

What? Protecting the creditors over the attorneys?

I think I'm gonna faint!

Anonymous said...

Watch her run now!

Mike said...

For sure I can't see her doing it for free.

Thelma said...

What do they ever do for free?

Wanda said...

Yeah, she'll quit now for sure and move on to other money making opportunities.

Anonymous said...

Thelma said...
What do they ever do for free?

nothing absolutely nothing this goes to show you that guardianship is not about the welfare of the ward oh no it's all about the $$!

this is a very interesting development and i would like to have been a fly on the wall of the elevtor when former state Supreme Court Justice Faith Ireland was turned down oh that would be a heck of a you tube skit ey?

Norma said...

Good one, Barbara, and you're right. Usually, the money flow freely. This is unusual and somewhat refreshing.

Diane said...

I'm amazed!

Anonymous said...

Just looking at the photo of this woman I say eeeeeeeeeeeeeek the look on her face the look of contempt with hidden agenda gives me nightmares.