838 F.2d 1210
Unpublished Disposition
Laurence H. LEVY, Trustee, Plaintiff-Appellee,
v.
John Edward RUNNELLS, John Edwards Properties, Inc.,
Defendants-Appellants,
and
William Robert Runnells, Jr., Marika Lody Runnells, a/k/a
Marika Lahti Runnells, Thomas Ebmeier, Kimberly Runnells
Ebmeier, Stephen Z. Runnells, Robert D. Runnells, Lucille P.
Runnells, Property Buyers, Inc., Runnington Investment
Corporation, William Robert & Company, Kimberly & Company,
Lody & Company, Mortgage Express, Inc., Richmond Equity
Corporation, Sovran Financial Corporation, Statewide
Mortgages Inc., Prime Financial Corporation, General
Mortgage Corporation, Butler, Payne & Griffin, Thalia
Meadows Holding Corporation, Property Holding Corporation,
Runnington Holding Corporation, Defendants.
Laurence H. LEVY, Trustee, Plaintiff-Appellee,
v.
Marika Lody RUNNELLS, a/k/a Marika Lahti Runnells, Stephen
Z. Runnells; Robert D. Runnells, Lucille P.
Runnells, Defendants-Appellants,
and
William Robert Runnells, Jr., Thomas Ebmeier, Kimberly
Runnells Ebmeier, Property Buyers, Inc., Runnington
Investment Corporation, William Robert & Company, Kimberly &
Company, Lody & Company, Mortgage Express, Inc., Richmond
Equity Corporation, Sovran Financial Corporation, Statewide
Mortgages, Inc., Prime Financial Corporation, General
Mortgage Corporation, Butler, Payne & Griffin, Thalia
Meadows Holding Corporation, Property Holding Corporation,
Runnington Holding Corporation, John Edward Runnells, John
Edwards Properties, Inc., Defendants.
Nos. 87-2105, 87-2113.
United States Court of Appeals, Fourth Circuit.
Argued Jan. 5, 1988.
Decided Jan. 28, 1988.
NOTICE: Fourth Circuit I.O.P. 36.6 states that citation of unpublished dispositions is disfavored except for establishing res judicata, estoppel, or the law of the case and requires service of copies of cited unpublished dispositions of the Fourth Circuit.
Barry Randolph Koch (Edward T. Caton, III; Richard W. Whittemore, Caton & Koch, P.C. on brief), Tom C. Smith, Jr. for appellants.
David Huntington Adams (Clark & Stant, P.C. on brief) for appellee.
E.D.Va.
AFFIRMED.
Before HARRISON L. WINTER, Chief Judge, and MURNAGHAN and SPROUSE, Circuit Judges.
PER CURIAM:
The Trustee of Landbank Equity Corporation obtained from the bankruptcy court an award totaling $51,020,243.53 in damages against several members of the Runnells family and one of its corporations. The case revolves around wrongful self-enrichment by members of the Runnells family through the family's manipulation of assets of Landbank and its affiliates. Actual fraud, loan preferences and other forms of improper dealings were revealed. Except for six minor factual issues remanded for additional consideration, the judgment of the bankruptcy court was affirmed in a detailed opinion of the district court. The questions involved in this appeal concern (a) the propriety of punitive damages and (b) whether piercing of the corporate veil for various family-controlled corporations was proper.
We find that the defendants had ample notice of the likelihood that punitive damages would be imposed if the trustee succeeded in proving the alleged instances of fraud and improper dealings. The imposition of treble punitive damages was proper under Fed.R.Civ.P. 54(c), which applies to all adversary bankruptcy court proceedings. See 11 U.S.C., Bankr.Rule 7054. We also find that the bankruptcy court properly applied the factors outlined by this Court in DeWitt Truck Brokers, Inc. v. Fleming Fruit Co., 540 F.2d 681 (4th Cir.1976), in determining that the piercing of the corporate veil of various corporations was proper.1
The clearly erroneous standard of review is appropriate here; the matters adjudicated are within the core area of the federal bankruptcy power. 11 U.S.C., Bankr.Rule 8013; see Harman v. Levin, 772 F.2d 1150, 1152-53 & n. 3 (4th Cir.1985). The considered factual findings of the bankruptcy court are by no means clearly erroneous. The rationale of the district court's opinion is excellent and suggests no valid grounds for reversal.
In sum, the findings of the bankruptcy court were most adequately supported by the evidence in the case and we affirm on the opinion of the district court (Levy v. Runnells, et al., No. 86-963, in the United States District Court for the Eastern District of Virginia).
AFFIRMED.
We have previously applied the DeWitt standards in a bankruptcy case arising under Virginia law. See In re County Green Limited Partnership, 604 F.2d 289 (4th Cir.1979)