Home New Cases Walmart Sued For Immediate Turnover of Receivables Allegedly Due Debtor

Walmart Sued For Immediate Turnover of Receivables Allegedly Due Debtor


Download the full pdf of the complaint by clicking: here

September 02, 2022, US Bankruptcy Court for Hawaii – Royal Hawaiian Water Co., Ltd dba Hawaiian Isles Water Co. (“Royal Hawaiian” or “Debtor”) sued Walmart, Inc. to seek turnover of the receivables allegedly due from Walmart to Royal Hawaiian.

Royal Hawaiian allegedly owes an amount in excess of $2 million to the Department of Health of the State of Hawaii for unpaid beverage container fees. On April 4, 2021, the Circuit Court of Hawaii held in favor of the Department of Health (“DOH”) to obtain the said fees from the Debtor. Later, DOH obtained and purportedly served garnishee summons on certain entities which allegedly owed receivables to Debtor. These entities include Walmart, CVS Pharmacy Inc., QSI Inc., et al.

The Debtor claims to have sent a demand to the garnisheed entities requesting turnover of funds allegedly due and owing to the Debtor. The Debtor alleges that the garnisheed entities including Walmart have allegedly failed to turnover owed funds to the Debtor due primarily to DOH’s refusal to acknowledge that the funds are allegedly property of the Debtor’s bankruptcy estate and not subject to DOH’s pre-petition garnishment. The complaint alleges that the said funds are “indisputably” owed to the Debtor and are allegedly a part of the Debtor’s bankruptcy estate. The Debtor pleads for an order and judgment under 11 U.S.C. §542(a) for immediate turnover of the receivables/funds from Walmart.

Royal Hawaiian Water Co. Ltd v. Department of Health, State of Hawaii, et al., AP No. 22-90013, US Bankruptcy Court for the District of Hawaii