Wallace SHOCKS conscience of DE court!!!!!!!!
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IN THE COURT OF COMMON PLEAS OF THE STATE OF DELAWARE
IN AND FOR KENT COUNTY
HAROLD & BETTE WALLACE, :
Plaintiffs :
v. : C.A. No. CPU5-09-000438
GECKOSYSTEMS INTERNATIONAL CORP. & :
R. MARTIN SPENCER, :
Defendants. :
MOTION TO SET ASIDE FI FA SHERIFF’S SALE
COME NOW, the above captioned Defendants, by and through their undersigned Counsel, Donald L. Gouge, Jr., and hereby Move this Honorable Court for an Order to set aside the stock sale that took place on Friday, May 31, 2013 at the offices of the New Castle County Sheriff’s office at 10:00 a.m. on the following grounds:
1. This is a debt action with a long history before the Court. A prior motion to quash the fi fa was filed on January 27, 2012, which is re-incorporated by reference.
2. The only bidder who appeared at the sale was Neil T. Wallace, son of the plaintiffs’, an attorney barred in two states and admitted pro hac vice in this matter.
3. Mr. Wallace opened the bidding at $1000, and, being the only bidder, was the high bidder.
4. The defendants do not claim any irregularity or defect in the sale or in the tasks performed by the NCC Sheriff. Rather, the sale should be set aside due to inadequacy of price. That is, the $1000 bid was so grossly inadequate that the sale must be set aside.
5. The common stock that was sold totaled 44,600,000 shares. The preferred stock amounted to 2937 shares, convertible to common at 1:71,313. Therefore, the preferred shares equaled 209,446,281 shares of common stock. The total shares of common stock sold at the sale was 253,646,281.
6. The stock price for Geckosystems closed at $.003 on Thursday, May 30, 2013 (Exhibit 1). The total value of the stock sold by the Sheriff was $760,938.84 (roughly 35% of the company). The closing price was $.0039 on Friday, May 31, 2013, the day of the sale, therefore the value of the stock sold was $989,220.50.
7. In general, a Sheriff’s sale will be set aside if the price is below 50% of the fair market value of the property, such that it is so grossly inadequate that it shocks the conscience of the Court. The Court has broad discretion to set aside a sale. Inadequacy of price is a common reason for a sale to be set aside. See Deibler v. Atlantic Properties Group, 652 A.2d 553 (Del. 1995), citing Burge v. Fidelity Bond & Mortgage Company, 648 A.2d 414, 419 (Del. 1994).
8. In the case at hand, it is not even a close call. In addition to all of the issues previously raised to this court in the January 27, 2012 filing, the plaintiffs have just received a windfall of at least $750,000. The winning bid was, at best, .0013% of the total value of the stock received, a shocking amount that is not remotely close to the threshold of 50%. This sale should be set aside to correct a plain injustice consistent with principles of equity. Burge at 421.
WHEREFORE, Defendants respectfully pray that this Honorable Court set aside this fi fa Sheriff’s sale due the sale price being so inadequate that it shocks the conscience of the Court.
/s/ Donald L. Gouge, Jr. #2234
DONALD L. GOUGE, JR. (#2234)
800 N. King Street, #303
Wilmington, DE 19801
Attorney for defendants
DATED: June 3, 2013
