West Pace Trustee Accuses Thomas Hayley of Alleged “Mismanagement” & “Breach of Fiduciary Duty”; Seeks $5 Million in Alleged Damages
January 15, 2022, Middle District of Alabama – Marshall Glade, as Liquidating Trustee of the bankruptcy estate of Debtor West Pace, LLC, brings a lawsuit against multiple defendants including Thomas Hayley, Hayley Family Partnership, Ltd., Redd Family Partnership, LLLP, HayRay, LLC, Home Yard & Garden, Inc., Lake Martin, Inc., and Eagle Management, LLC to recover damages for Hayley’s alleged “breach of fiduciary duties.” Additionally, the Trustee seeks to avoid and recover certain “fraudulent” and “insider preferential transfers” allegedly made to the Defendants.
The complaint asserts that Hayley “breached his duty of care” to West Pace by allegedly “mismanaging West Pace and failing to construct infrastructure and buildings that West Pace was required to build.” The complaint further adds that Hayley allegedly transferred “millions of dollars in cash to companies owned by or affiliated with himself.” Glade alleges that all this resulted in West Pace filing chapter 11 bankruptcy and involuntarily liquidating its assets after an expensive and unnecessarily litigious case. As a result of Hayley’s “breach of his duty of care”, the Trustee claims that West Pace has been allegedly damaged by over $5 million.
Glade also argues that before the Debtor filed for bankruptcy, it made dividends and transfers to various defendants for over $2,359,648.00 and $833,377.81 allegedly with an “actual intent to hinder, delay, or defraud” West Pace’s creditors and seeks to avoid them as “actual and constructively fraudulent transfers” and “insider preferences” under the Alabama Uniform Voidable Transfer Act, Ala.Code 8-9B-1, et seq. and Sec. 544 of the Bankruptcy Code.