{"id":"court_ctb_1810_0","court":"CTB","case_no":"22-50073","doc_number":1810,"sub_number":0,"doc_type":"UNKNOWN","filed_date":null,"title":"UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION In re:","summary_zh":null,"summary_en":null,"body_en":"## **UNITED STATES BANKRUPTCY COURT DISTRICT OF CONNECTICUT BRIDGEPORT DIVISION**\n\nIn re:\n\nChapter 11 Case No.\n\nHo Wan Kwok *et al.*, 1 22-50073 (JAM)\n\nDebtors.\n\nJointly Administered\n\n# **PACIFIC ALLIANCE ASIA OPPORTUNITY FUND L.P.'S OBJECTION TO GENEVER HOLDINGS LLC'S APPLICATION FOR AUTHORIZATION TO RETAIN AFFILIATED ADJUSTMENT GROUP, LTD. AS PUBLIC ADJUSTER**\n\n## TO THE HONORABLE JULIE A. MANNING, UNITED STATES BANKRUPTCY JUDGE:\n\nPacific Alliance Asia Opportunity Fund L.P. (\"PAX\"), by and through its undersigned\n\ncounsel, respectfully submits this objection (the \"Objection\") to the *Application of Genever*\n\n*Holdings LLC for Authorization to Retain and Employ Affiliated Adjustment Group, Ltd. as Public*\n\n*Adjuster* [ECF No. 1749] (the \"Application\").<sup>2</sup> In support of this Objection, PAX respectfully\n\nstates as follows:\n\n# **BACKGROUND**\n\n1. The Application seeks to retain Affiliated Adjustment Group, Ltd. (\"AAGL\") to\n\n\"assist in the adjustment, negotiation, and/or settlement of Genever (US)'s claim [] for the loss or\n\n<sup>1</sup> The Debtors in these chapter 11 cases are Ho Wan Kwok (also known as Guo Wengui, Miles Guo, and Miles Kwok, as well as numerous other aliases) (last four digits of tax identification number: 9595) (\"Kwok\" or the \"Individual Debtor\"), Genever Holdings Corporation (\"Genever BVI\"), and Genever Holdings LLC (last four digits of tax identification number: 8202) (\"Genever (US)\"). The mailing address for the Trustee, Genever BVI, and Genever US is Paul Hastings LLP, 200 Park Avenue, New York, NY 10166 c/o Luc A. Despins, as Trustee for the Estate of Ho Wan Kwok (solely for purposes of notices and communications).\n\n<sup>2</sup> Capitalized terms used but not defined in this reply shall have meanings given to such terms in the Application. Unless otherwise noted all emphasis is added and all citations and quotations are omitted.\n\ndamage sustained at the 18th floor apartment at the Sherry Netherland Hotel.\" Application at ¶ 1.\n\nThe Application proposes that AAGL will perform the following services (the \"Services\"):\n\n- Preparation, presentation, adjustment, and negotiation, or effecting a settlement, of the claim for the loss or damage by a covered peril or perils sustained in the Apartment. Application at ¶ 19(a).\n- Preparation and delivery of periodic reports to Genever (US) with respect to (i) the cost of immediate remediation/abatement, (ii) the cost of repairs using different assumptions as to the state of repair, and (iii) the length of repairs or renovations. Application at ¶ 19(b).\n- Providing expert testimony before a court of competent jurisdiction as to the aforementioned matters (i.e., the cost of immediate remediation/abatement, the cost of repairs using different assumptions, and the length of repairs or renovations). Application at ¶ 19(c).\n\n2. In exchange for performance of the Services, the Application proposes a contingency fee arrangement that binds Genever (US) to pay AAGL (a) 5% of any settlement proceeds from the claim up to \\$3 million, (b) 4% of any settlement proceeds greater than \\$3 million but less than \\$15 million, and (c) 3% of any settlement proceeds greater than \\$15 million but less than \\$50 million. Application at ¶ 21.\n\n3. At the April 27, 2023 hearing, the Trustee expressed that Genever (US) would need to hire a law firm that is specialized on insurance coverage disputes in light of the fire at the Sherry Netherland apartment (the \"Fire\"). Accordingly, Genever (US) hired Saxe Doernberger & Vita, P.C., an elite law firm with a singular focus on insurance coverage law, which filed an adversary complaint on behalf of Genever (US) against AIG Property Casualty Company (\"AIG\") on May 12, 2023.<sup>3</sup> ECF 1787.\n\n<sup>3</sup> It is PAX's understanding that a formal application to retain Saxe Doernberger & Vita, P.C. is forthcoming.\n\n4. At the May 10, 2023 hearing, the Trustee also informed the Court that it had hired Find the Cause Investigations LLC to investigate the cause of the Fire. The Trustee also stated that this was a one-off engagement, costing only a few thousand dollars.\n\n#### **ARGUMENT**\n\n5. As the moving party, Genever (US) bears the burden of proving that that the terms and conditions of the proposed retention of professionals are in the best interests of the estate. *See In re Gillett Holdings*, Inc., 137 B.R. 452, 455 (Bankr. D. Colo. 1991) (\"[T]he burden of proof to establish that proposed terms and conditions of employment are reasonable is on the moving party. The Court must be persuaded that the terms and conditions are in the interest of the estate.\"). To meet this burden, Genever (US) must provide \"specific facts showing the necessity\" for AAGL's retention. Fed. R. Bankr. P. 2014; *see also In re High Voltage Eng'g Corp*., 311 B.R. 320, 334- 35 (Bankr. D. Mass. 2004) (denying retention application where, *inter alia*, the \"Court ha[d] been given no information about the specific scope and complexity of the assignment or specialized skills needed for it.\"); *see also In re Trans. Nat. Commc'ns Int'l*, *Inc*., 462 B.R. 339, 347 (Bankr. D. Mass. 2011) (denying retention application where it did not supply detailed information regarding the proposed retention).\n\n6. Genever (US) also bears the burden of proving that the retention of AAGL would not be \"duplicative of the services to be performed by\" other retained professionals. *In re Wang Labs., Inc.,* 143 B.R. 794, 795 (Bankr. D. Mass. 1992) (denying application to retain financial advisor as duplicative of the services to be performed by a law firm or an accounting firm); *In re Saxon Indus., Inc.,* 29 B.R. 320, 322 (Bankr. S.D.N.Y. 1983) (finding that a party's request for independent professional services should be denied if such services are duplicative and wasteful).\n\n7. The Application should be denied, because Genever (US) cannot meet either of these two burdens.\n\n8. *First*, the Application does not demonstrate that retaining AAGL is in the best interests of the estate. *High Voltage* is instructive. There, the debtor provided a list of generic financial advisory services in connection with its application to retain Evercore. *High Voltage*, 311 B.R. at 327. In denying the debtor's application, the court found that it was \"not in a position to gauge the reasonableness of the terms and conditions of Evercore's employment\" based on the \"vague descriptions of the tasks Evercore intends to perform.\" *Id*. at 335. Here too, the short list of anticipated adjustor services in the Application suffers the same vagueness and ambiguity, and should therefore be denied. For example, the Application fails to articulate the need for \"periodic reports\" and does not explain why a contingency fee structure serves the best interests of the estate.\n\n9. Instead, the most efficient and cost-effective solution would be (i) to direct alreadyretained insurance counsel, Saxe Doernberger & Vita, P.C., to represent the Debtor and provide advice regarding claim submission and settlement negotiation; and (ii) to engage experts on an *ad hoc* basis to assess the damage sustained in the Fire, provide an evaluation of the cost of repairs, and prepare reports or testify as to these matters as events unfold. These counsel and experts could be paid an hourly rate, if and as needed, as opposed to prematurely binding the estate to pay a public adjuster an amount that could turn out to be a far larger for a scope of work that is ambiguous and potentially unnecessary.\n\n10. *Second*, the Application fails to demonstrate why AAGL's services would not be duplicative of those that insurance counsel or other experts could provide on an as-needed basis. For example, Saxe Doernberger & Vita, P.C. can perform the usual insurance counsel functions of evaluating the claim, negotiating with insurers, and effecting a settlement should the opportunity\n\n4\n\narise. *See* Application ¶ 19(a). And if it turns out to be necessary, Genever (US) could retain experts akin to Find the Cause Investigations LLC to provide reports and/or expert testimony as to \"the cost of immediate remediation/abatement, the cost of repairs using different assumptions, and the length of repairs or renovations.\" Application at ¶ 19(b)–(c). At this juncture, the retention of AAGL appears to be \"duplicative\" of what insurance counsel and other experts could provide, and the Application should therefore be denied. *In re Wang Labs.,* 143 B.R. at 795 (Bankr. D. Mass. 1992).\n\n#### **CONCLUSION**\n\nThe Trustee has the obligation to look for less expensive ways to obtain a settlement of claims relating to the Fire. This goal could and should be accomplished using professionals that (i) have already been retained by the estate or (ii) could be retained less expensively on an *ad hoc*  basis, making the retention of AAGL duplicative and likely unduly costly. For the reasons stated above, PAX respectfully requests that the Application be denied.\n\n*[Remainder of Page Intentionally Left Blank]*\n\nDated: May 19, 2022 Hartford, Connecticut\n\n### **Pacific Alliance Asia Opportunity Fund L.P.**\n\n*By*: /s/Patrick M. Birney\n\nPatrick M. Birney (CT No. 19875) Annecca H. Smith (CT No. 31148) **ROBINSON & COLE LLP**  280 Trumbull Street Hartford, CT 06103 Telephone: (860) 275-8275 Facsimile: (860) 275-8299 E-mail: pbirney@rc.com asmith@rc.com\n\n-and-\n\nPeter Friedman (admitted *pro hac vice*) Stuart M. Sarnoff (admitted *pro hac vice*) **O'MELVENY & MYERS LLP**  7 Times Square New York, NY 10036 Telephone: (212) 326-2000 Facsimile: (212) 326-2061 Email: pfriedman@omm.com\n\nssarnoff@omm.com\n\n### **CERTIFICATE OF SERVICE**\n\nI hereby certify that on May 19, 2022, a copy of the foregoing was filed electronically through the Court's CM/ECF System. Notice of this filing will be sent by e-mail to all parties by operation of the court's electronic filing system. Parties in interest may access this filing through the Court's CM/ECF System.\n\n> /s/Patrick M. Birney Patrick M. Birney","body_zh":"United States Bankruptcy Court District of Connecticut Bridgeport Division（美国康涅狄格区联邦破产法院布里奇波特分院）\n\n案件涉及：\n\n第 11 章 案件编号\n\nHo Wan Kwok（郭文贵）等人 1 22-50073 (JAM)\n\n债务人。\n\n合并审理\nPacific Alliance Asia Opportunity Fund L.P. 对 Genever Holdings LLC 申请授权聘请 Affiliated Adjustment Group, Ltd. 担任公估人的异议\n致：尊敬的 Julie A. Manning（朱莉·A·曼宁），美国联邦破产法官：\n\nPacific Alliance Asia Opportunity Fund L.P.（“PAX”）通过其下述署名律师，谨此就 Genever Holdings LLC（“Genever（美国）”）申请授权聘请及雇用 Affiliated Adjustment Group, Ltd. 担任公估人之申请书 [ECF No. 1749]（“申请书”）提交本异议（“异议”）。2 为支持本异议，PAX 谨陈述如下：\n\n背景\n\n1. 申请书旨在聘请 Affiliated Adjustment Group, Ltd.（“AAGL”）以“协助理算、谈判和/或和解 Genever (US) 就雪莉荷兰酒店（Sherry Netherland Hotel）18 楼公寓所遭受的损失或损坏提出的索赔。”申请书第 1 段。\n\n1 本批第 11 章案件中的债务人为 Ho Wan Kwok（郭文贵，又名郭文贵、Miles Guo 及 Miles Kwok，以及其他诸多化名）（纳税人识别号后四位：9595）（“Kwok”或“个人债务人”）、Genever Holdings Corporation（“Genever BVI”）以及 Genever Holdings LLC（纳税人识别号后四位：8202）（“Genever (US)”）。受托人、Genever BVI 和 Genever US 的邮寄地址为 Paul Hastings LLP, 200 Park Avenue, New York, NY 10166 c/o Luc A. Despins，作为 Ho Wan Kwok 破产财产受托人（仅用于接收通知和通信）。\n\n2 本回复中使用但未予定义的大写术语应具有申请书赋予该等术语的含义。除另有说明外，所有强调均为后加，且所有引述和引文均已略去。\n\n申请书提议 AAGL 将提供以下服务（“服务”）：\n\n- 编制、提出、理算和谈判，或促成和解有关公寓内因承保危险或事故遭受的损失或损坏的索赔。申请书第 19(a) 段。\n- 就以下事项编制并向 Genever (US) 交付定期报告：(i) 即时补救/消除危害的费用，(ii) 在不同维修状态假设下的维修费用，以及 (iii) 维修或翻新的工期。申请书第 19(b) 段。\n- 就上述事项（即即时补救/消除危害的费用、不同假设下的维修费用以及维修或翻新的工期）在有管辖权的法院面前提供专家证言。申请书第 19(c) 段。\n\n2. 作为提供服务的对价，申请书提议了一项风险代理费安排，约束 Genever (US) 向 AAGL 支付：(a) 索赔和解款中不超过 300 万美元部分的 5%，(b) 索赔和解款中超过 300 万美元但低于 1500 万美元部分的 4%，以及 (c) 索赔和解款中超过 1500 万美元但低于 5000 万美元部分的 3%。申请书第 21 段。\n\n3. 在 2023 年 4 月 27 日的听证会上，受托人表示，鉴于雪莉荷兰酒店公寓发生火灾（“火灾”），Genever (US) 将需要聘请一家专门从事保险承保争议的律师事务所。据此，Genever (US) 聘请了专注于保险承保法律的精英律所 Saxe Doernberger & Vita, P.C.，该所代表 Genever (US) 于 2023 年 5 月 12 日对 AIG Property Casualty Company（“AIG”）提起了对抗辩诉状。3 ECF 1787。\n\n3 PAX 获悉，正式聘请 Saxe Doernberger & Vita, P.C. 的申请书即将提交。\n\n4. 在 2023 年 5 月 10 日的听证会上，受托人还告知法院，其已聘请 Find the Cause Investigations LLC 调查火灾原因。受托人还表示，这是一次性聘用，费用仅几千美元。\n\n论证\n\n5. 作为提出动议的一方，Genever (US) 承担举证责任，证明提议聘请专业人士的条款和条件符合破产财产的最佳利益。参见 In re Gillett Holdings, Inc., 137 B.R. 452, 455 (Bankr. D. Colo. 1991)（“确立所提议雇用条款与条件之合理性的举证责任由提出动议的一方承担。法院必须确信这些条款和条件符合破产财产的利益。”）。为履行该举证责任，Genever (US) 必须提供“表明确有必要聘请 AAGL 的具体事实”。Fed. R. Bankr. P. 2014；亦见 In re High Voltage Eng'g Corp., 311 B.R. 320, 334-35 (Bankr. D. Mass. 2004)（驳回聘请申请，除其他原因外，由于“法院未获悉有关该任务的具体范围与复杂程度，或其所需专业技能的任何信息”）；亦见 In re Trans. Nat. Commc'ns Int'l, Inc., 462 B.R. 339, 347 (Bankr. D. Mass. 2011)（在申请未提供有关提议聘请的详细信息时予以驳回）。\n\n6. Genever (US) 还承担举证责任，证明聘请 AAGL 不会与已聘请的其他专业人士“将履行的服务重复”。In re Wang Labs., Inc., 143 B.R. 794, 795 (Bankr. D. Mass. 1992)（驳回聘请财务顾问的申请，认定其与律师事务所或会计师事务所将履行的服务重复）；In re Saxon Indus., Inc., 29 B.R. 320, 322 (Bankr. S.D.N.Y.（纽约南区联邦破产法院） 1983)（认定当事人对独立专业服务的请求如属重复和浪费，应予以驳回）。\n\n7. 该申请应予驳回，因为 Genever (US) 无法满足上述两项举证责任中的任何一项。\n\n8. 首先，申请书未能证明聘请 AAGL 符合破产财产的最佳利益。High Voltage 案具有指导意义。在该案中，债务人就其申请聘请 Evercore 提交了一份宽泛通用的财务咨询服务清单。High Voltage, 311 B.R. at 327。法院在驳回债务人的申请时认定，基于“Evercore 拟执行任务的含糊描述”，法院“无法评估 Evercore 雇用条款和条件的合理性”。Id. at 335。在本案中，申请书中列出的公估人预期服务简要清单同样存在模糊和歧义，因此应予驳回。例如，申请书未能阐明需要“定期报告”的必要性，也未解释为何风险代理费结构符合破产财产的最佳利益。\n\n9. 相反，最高效且最具有成本效益的解决方案是：(i) 指示已被聘请的保险律师 Saxe Doernberger & Vita, P.C. 代表债务人并就索赔提交和和解谈判提供建议；以及 (ii) 在特设（临时）基础上聘请专家来评估火灾中遭受的损失、提供维修费用评估，并随着事态发展就这些事项编制报告或作证。这些律师和专家可以根据需要按小时费率付费，而不是过早地约束破产财产向公估人支付可能高得多的金额，去从事一项工作范围模糊且可能不必要的业务。\n\n10. 其次，申请书未能证明为何 AAGL 的服务不会与保险律师或其他专家在需要时可提供的服务相重复。例如，Saxe Doernberger & Vita, P.C. 可以履行评估索赔、与保险人谈判以及在机会出现时促成和解等常规保险律师职责。参见申请书第 19(a) 段。如果事实证明确有必要，Genever (US) 可以聘请类似于 Find the Cause Investigations LLC 的专家，就“即时补救/消除危害的费用、不同假设下的维修费用以及维修或翻新的工期”提供报告和/或专家证言。申请书第 19(b)–(c) 段。在此关头，聘请 AAGL 似乎与保险律师和其他专家能够提供的服务“重复”，因此申请应予驳回。In re Wang Labs., 143 B.R. at 795 (Bankr. D. Mass. 1992)。\n\n结论\n\n受托人有义务寻找成本更低的方式来就与火灾相关的索赔达成和解。这一目标能够且应当通过以下专业人士来实现：(i) 破产财产已经聘请的专业人士，或 (ii) 可以在特设基础上以更低成本聘请的专业人士，这使得聘请 AAGL 显得多余且可能过分昂贵。基于上述理由，PAX 谨请求驳回该申请。\n\n[本页其余部分有意留白]\n\n日期：2022 年 5 月 19 日 康涅狄格州哈特福德\nPacific Alliance Asia Opportunity Fund L.P.\n\n签署：/s/ Patrick M. Birney\n\nPatrick M. Birney (CT No. 19875) Annecca H. Smith (CT No. 31148) ROBINSON & COLE LLP 280 Trumbull Street Hartford, CT 06103 电话：(860) 275-8275 传真：(860) 275-8299 电子邮件：pbirney@rc.com asmith@rc.com\n\n-以及-\n\nPeter Friedman（经特许出庭） Stuart M. Sarnoff（经特许出庭） O'MELVENY & MYERS LLP 7 Times Square New York, NY 10036 电话：(212) 326-2000 传真：(212) 326-2061 电子邮件：pfriedman@omm.com\n\nssarnoff@omm.com\n\n送达证书\n\n我在此证明，于 2022 年 5 月 19 日，前述文书的副本已通过法院的 CM/ECF 系统进行电子归档。本归档通知将通过法院电子归档系统的运行以电子邮件形式发送给所有当事方。利害关系方可通过法院的 CM/ECF 系统查阅本归档文件。\n\n/s/ Patrick M. Birney Patrick M. Birney","key_entities":["Kwok","Je","Guo","Ho Wan Kwok","Miles Guo","Despins","Paul Hastings","CIPA"],"ecf_references":[{"doc_number":1749,"court":"CTB"},{"doc_number":1787,"court":"CTB"}],"word_count":1573,"status":"published","published_at":null,"created_at":null,"updated_at":"2026-08-23 12:55:17"}