Settlement Offer Expected in Carter's Grove Bankruptcy Case

Wednesday, June 15, 2011

Colonial Williamsburg and Halsey Minor are closer to reaching consensus about arguments over Carter’s Grove, with a settlement offer due this week and a court date set for early July.

At the end of January, Colonial Williamsburg announced its intent to auction Carter’s Grove after Carter’s Grove LLC, the company dot-com millionaire Minor formed to purchase the historic property from CW in 2007, defaulted on the final two payments on the $10.3 million note. The auction was canceled after the entity filed for bankruptcy in California. Click here to read a story about CW's intention to sell the property at auction, and here to read about Minor's bankruptcy claim.

Minor claims that CW didn’t disclose prior damage to the home when he purchased it, one reason he gives for not paying CW the final two payments totaling roughly $4 million. Minor also has other pending cases tying up his cash, he said in previously filed court documents. CW and Minor agreed on a deadline for Minor to file any claims against CW for the alleged damage and a deadline for Minor to deliver a settlement offer, according to documents filed last Friday.

The new documents say the parties agreed that Minor has until June 24 to file a claim against CW for any issues “based on facts that existed or occurrences that happened prior to June 24.” After that date, he is barred from filing further complaints.

Also, Minor was required to deliver a draft of his claim to CW by last Friday, though he can wait to file final claims relating to environmental conditions pending the results of environmental tests currently underway.

CW spokesman Tom Shrout was not able to comment on whether CW received any notice from Minor Friday, due to the pending case.

Minor also agreed to file a confidential settlement offer to CW by this Friday, according to court documents. Shrout was not able to comment on the expected settlement offer, either.

The two parties are due in court on July 7 for the Status Conference, and for the judge’s decision on CW’s motion to move proceedings to Virginia.