So, Luck Only Happens Once

Posted on December 22, 2008 in Arizona Trials

My dad always used to tell me that ‘luck only happens once.’ What he meant was if someone is truly successful, it is not because of luck, it is because of hard work, street smarts and good planning. Not simply luck! Well, by Madoff standards I ain’t done much, but for a boy who grew up on 40th street in Phoenix, I have been lucky blessed indeed.

Anyway, I think this advice is the only time my dad was wrong. I got lucky twice. First, I married Andra.

The next stroke of luck was working for Tom Stoops, Esq. He is and has always been a top real estate lawyer in Phoenix. He is a true gentleman lawyer and faithful Arizonan committed to our cowboy roots. He taught me to prepare cases beyond what was expected. He told me to trust my instincts, not the books that would tell me how to think. He told me to be honest and faithful to the concept of justice. He told me to stay faithful to my Christian faith and defend the poor.

He taught me how to cowboy up when the white shirt law firms and their big money attack the little guy. We put real estate con or two out of business back in those days. One crook sold bogus lots in Northern Arizona at The “Grand Canyon Estates” to European visitors. A thousand bucks down & hundred bucks a month. The problem was, the lots had no water, roads, sewer or nor could they even be found. One German who looked like Otto in Malcom in the Middle bought the same lot about 15 times. Tom taught me how to stand up to these type of cons.

I just went to Tom’s Christmas party. It was full of his long time friends and business associates. There was a ton of good cheer. I was kind of surprised that I knew some of his folks after so many years of not seeing Tom. His staff still worked with him. 

So, I now will tell my kids that luck can happen twice.

I also tell them that every successful guy I know sticks with his friends and business partners. Jerry C. who owned the Phoenix Suns still has his secretary Ruth. Bob Russell has the same accountant for 40 years. Mike Dorn still works with his accountant and lawyer after 30 plus years. The Van Arsdale brothers do not quit on their partners or contractors, nor does Bob Fraley, Skip Hancock, Howie Basuk, The Tangs, The Gongs, Andrew Cohn, Bob Alpert, Chris Peacock, Tim Louis, Mark Stein, Jim Harrison, Ezri Namvar or a whole host of multi-bill/mill-ionaires I know and work with.

Mom told me you know a person by who their friends are. I’ll amend that too mom, you know a business guy based on who still hangs around him after 25 plus years. To Lou P., Erv S., John H., Steve S., etc. thanks for sticking in there with the Law Firm of William A. Miller and God Bless you Tom.

 

 

 

Greetings:
My new phone and fax numbers are:
480-948-3095- phone
480-948-3137- fax
The cell is the same. 602-319-6899
Thanks and Merry Christmas!

In an Arizona Lawsuit? Keep Good Records or Risk Big Time Losses

Posted on November 26, 2008 in Arizona Law Regarding Business and Real Estate

In a recent Arizona case that involved real estate, an entrepreneur named Caneva owned several businesses, mobile home parks and even an airplane. This guy was a classic Arizona developer. At the law firm of William A. Miller, PLLC, we have seen scores of cases like this. Anyway, in too much debt, he chose to file for Chapter 7 dissolution and discharge. He had every right to do so. While in Court, he amended his bankruptcy schedules. As noted on the record, each schedule was less and less clear as to what he owned. 

 

Finally, his last amendment said his interest in the businesses was unclear or unknown. In a courtroom cross-examination of the status of his finances, the guy admitted that he failed to keep records for his businesses. I think the presumption was he was hiding something. Arizona judges do not like this at all.

 

In Arizona and virtually every other State, you must keep business financial records and electronic evidence in order to obtain a discharge in bankruptcy. One of Caneva’s creditors objected to the Court’s ability to discharge his debts due to his lack of financial records. The Court denied Caneva’s request for a discharge based on his lack of records, ruling that the court couldn’t tell what to discharge, and he appealed. He lost. Arizona lawyers and those who litigate often say, “the cover up is worse than the crime.”

 

Federal law allows discharges, but not if the debtor fails to preserve records “from which the debtor’s financial condition or business transactions might be ascertained.”  Sufficient written evidence, as opposed to absolute completeness, must be presented.

 

Caneva argued he produced a substantial quantity of documents, but he admitted he did not keep records crucial to determine the extent of Caneva’s interest in his businesses. Since his creditors were not able to accurately understand Caneva’s financial condition, the court did not have to discharge his debts. In Maricopa County you must also keep or have retention policies regarding electronic records such as emails and computer programs.

 

I have heard of Maricopa County Judges tossing out suits for failure to keep and then produce good business records. The same goes for offering a defense. Keep good records or you may lose your chance at a case-winning argument.

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