Chapter 9
Tire Iron
I entered the crowded courtroom and sat down in the row of seats directly behind the counsel tables. Court was already in session and the judge was listening to an attorney present his case. It was nine-fifteen and I was actually fifteen minutes early for my hearing. I often arrived early for hearings, as the consequences of being late were quite severe. Judge Babcock was an elderly judge and had grown impatient over the years with lackadaisical attorneys. It was not unusual for him to humiliate a tardy lawyer in front of his colleagues, and, if the offense was severe enough, to cut his fee. I listened intently to the attorney's argument to the Court in hopes I might learn something of value. More than once, something I had picked up accidentally in court proved useful in my own practice.
I had determined from the attorney's argument that it was a Chapter 11 case involving a general partnership called Bassett Products. Apparently, the trustee assigned to the case was asking the Court to impose liability on the general partners.
"Your Honor, as the Court is aware under Section 723 of Title 11, United States Code, general partners are personally liable to the estate for the debts of the partnership. Therefore, the trustee will be bringing adversary proceedings against all of the eleven partners," the attorney noted.
"When do you anticipate bringing these actions?" the judge asked.
"We're working on them right now, Your Honor. I would estimate they will be filed within the next ninety days."
"Very well, I'll calendar this case for a status conference in 120 days," the judge said.
"Thank you, Your Honor."
The mention of general partnership liability reminded me of one of my business law professors at SMU, Preston Parks. He often warned us against advising clients to use them because they provided no liability protection for the partners. Each partner was jointly and severally liable for the acts of the others. The professor was critical of attorneys who set clients up with general partnerships when a corporation or limited partnership could be used. I wondered who the idiot was who'd set up Bassett Products. He obviously didn't take business law from Professor Parks.
Another problem with general partnerships, I recalled, was the requirement that partners provide additional capital as needed. In a corporation once you paid for your stock, nobody could make you cough up additional money. In a general partnership, however, when you got a cash call you had to open up your wallet and fork over more dough. This is what was happening to the poor bastards who'd invested in Bassett Products. The Trustee, who now controlled the partnership, was making one last cash call and anyone who didn't pay voluntarily was about to be sued.
After my hearing, I headed for the IRS Northwest field office. Representing as many small business owners as I did necessitated frequent dealings with the IRS. My meeting was with a Harold Clemmons, a Revenue Officer. We were meeting to discuss a client, an airline stewardess, who hadn't filed a tax return in ten years. She'd gotten scared and came to see me when her parents were arrested by the FBI for failing to file their income tax returns. I guess tax evasion is hereditary.
The purpose of the visit was to negotiate a payout of the $43,000 she owed in back taxes. Prior to coming to see me, she had never filed a tax return although she had been working for five years. Fortunately, I got all of her returns filed before the IRS Criminal Fraud Division came looking for her. Harold could still refer the case to them for prosecution, but I had dealt with him in the past and worked with him on a committee for the Chamber of Commerce. He had always been reasonable. I convinced him that she had been brainwashed by her parents, but now understood her duty to pay taxes. Now, the only problem was figuring out how to pay the tax bill which would be growing at an astronomical rate with all the accruing penalties and interest.
After a long meeting with the Revenue Officer, we agreed on a five year payout at $1,283 per month plus interest. I wasn't sure my client would be able to make the payments, but it was the best I could negotiate. A better move would have been a Chapter 13 since interest wouldn't accrue while she was making payments, but she wouldn't go for it. I got up and slipped the file back in my briefcase, "Good, then I guess that's it," I said looking anxiously toward the door.
Clemmons sat back in his chair and smiled. "I guess so. . . . So, what do you think about Luther Bell?" Clemmons asked.
"Luther Bell?" I repeated, recalling the events of the previous day.
"They said on the noon news on KRLD that you represent the Golden Dragon partners."
"Yes--right. The noon news?'
"You heard about what happened to him, didn't you?"
"No," I replied.
"He was murdered last night."
"Murdered?" I said, feeling a cold chill sweep over me. Don had threatened to kill Luther Bell, not once, but twice the previous day. Had he made good on his promise?
"I heard it on radio a few minutes ago. Apparently he was beaten to death with a tire iron."
"Did they say who did it?"
"One of your clients, I think. Do you know Don Blaylock?"
My mouth fell open. "Yeah, he's one of the partners," I admitted.
"Well he's a suspect along with another investor--Jim somebody. I don't know him."
"Jesus, I've got a meeting with Don in a little while."
Clemmons shook his head. "It looks like you're gonna have your hands full with this one."
I nodded and took off in a daze. Should I have done something last night to calm Don down? Maybe I should have gone over to his house to make sure he didn't do anything rash. When I got back to my office I got on the phone with a friend who was a dispatcher at the Dallas Police department to see what I could find out about the murder. She told me what she'd heard. After hanging up, I called Rebekah.
"Honey, I'm glad I caught you at home. Did you hear about Luther Bell?"
"I saw something about it on the news. Who is he?"
"A insurance agent. You know, the one who keeps calling trying to get an appointment to review our policies."
"Oh, that guy. . . Jesus. I can't believe someone killed him. I know he was a pest but--."
"Apparently Don Blaylock did some business with him."
"Oh, really. So, what happened?"
"Someone surprised him in his garage last night. Apparently the assailant hit Luther over the head with a tire iron knocking him unconscious and then beat him repeatedly until he was dead. I guess it was dark and Luther never saw it coming."
"You don't think Don had anything to do with it, do you?"
"I don't know, but he did threaten to kill him."
I told her about Pam's arrest and Don's threats against Luther.
"Oh, my God."
"I guess they've given the case to their top investigator, Detective Harold "Bingo" Besch. I've never met him but I've heard he's tough."
"Should I call Pam?"
"No, I'm meeting with them in a little while. We haven't discussed the murder yet. You can call her tomorrow after I know more about what's going on."
"Okay," Rebekah said. "Poor Don and Pam. They had everything going for them and now they've stumbled into a snake pit. I hope they didn't have anything to do with Luther's murder."
"Me too."