United States District Court, W.D. Washington, Tacoma
ORDER GRANTING PLAINTIFFS' MOTION FOR TEMPORARY
RESTRAINING ORDER IN PART, RESERVING RULING IN PART, AND
BENJAMIN H. SETTLE United States District Judge
matter comes before the Court on Plaintiffs Jean Pierre Rey
and Ilze Silarasa's (“Plaintiffs”) motion for
temporary restraining order (Dkt. 126).
January 31, 2014, Plaintiffs filed a complaint against
Defendants Builders Surplus Northwest Inc., Nevawa, Inc.,
Michel Rey, Renee Rey, U.S. Growing Investments Inc., U.S.
Investment Group Corporation, and Visitrade, Inc.
(“Defendants”) alleging numerous causes of
action. Dkt. 1.
March 13, 2014, Plaintiffs filed a motion for appointment of
a receiver for the Defendant corporations and for the
personal property in the possession of the individual
Defendants. Dkt. 19. On April 10, 2014, the Court denied the
motion concluding in part that “Plaintiffs have failed
to show that any property is in imminent danger of being lost
or squandered.” Dkt. 41 at 3. The Court also ordered
Defendants to show cause why certain conditions that the
parties appeared to agree on should not be imposed “as
protection for Plaintiffs' concerns regarding the
corporations or personal property while this matter
proceeds.” Id. at 4. On May 2, 2014,
Defendants responded stating that the parties agreed to
certain conditions with the exception of whether corporate
assets may be used to pay Defendants' attorneys'
fees. Dkt. 45. On May 28, 2014, the Court entered
Defendants' proposed order imposing the following
1. Defendants shall, by the twentieth day of each month,
provide Plaintiffs with financial statements for the
preceding month for each of the corporate Defendants. These
financial statements shall include: (a) a Balance Sheet, (b)
a Profit and Loss Statement, and (c) a Cash Flow Statement.
These statements shall be certified as true and accurate by
Michel Rey and Bryan Luque.
2. Defendants shall not further encumber or transfer any of
the properties held by the corporate Defendants without
obtaining prior court approval.
3. Michel Rey may continue to take his normal salary of $4,
000 for his work in management of the corporate Defendants.
Beyond this amount, Michel Rey shall take no personal
distributions from the corporate Defendants without prior
4. Defendants may use their assets to pay for attorneys'
fees and costs incurred for the defense of this litigation,
provided that the aggregate amount of such fees and costs
shall be shown in the financial statements provided each
month to Plaintiffs.
5. The parties shall be allowed to revisit the conditions
just enumerated with the Court at any time by filing a Motion
requesting appropriate relief.
Dkt. 50 at 1-2.
2, 2014, the Court granted Defendants' motion to dismiss
and entered judgment two days later. Dkts. 51, 52.
27, 2014, Plaintiffs filed a notice of appeal. Dkt. 67. On
April 14, 2015, the Ninth Circuit granted Plaintiffs'
motion for stay or injunction pending appeal and imposed the
same conditions as the Court “pending further order of
[the Ninth Circuit].” Dkt. 101. On April 20, 2014, the
circuit approved Defendants' motion to engage in some
business transactions and imposed the previous conditions on
the resulting assets. Dkt. 102. On December 8, 2015, the
circuit summarily approved additional transactions. Dkt. 104.
December 20, 2016, the circuit affirmed in part, reversed in
part, and remanded. Dkt. 106. On February 3, 2017, the
circuit issued its mandate. Dkt. 109.
2, 2017, Plaintiffs filed the instant motion for a temporary
restraining order alleging that Defendant Michel Rey
(“Michel”) has been transferring assets of the
Defendant corporations to properties and holding companies in
Costa Rica. Dkt. 126. While Plaintiffs do not submit evidence
explicitly showing that Michel has transferred assets of the
defendant corporations, one document establishes that Michel
obtained at least some of the funds used to purchase a
property in Costa Rica via the sale of the Best Western ...