* PLEASE ATTEND THE GENERAL ASSEMBLY
AND VOTE YOUR CONSCIENCE
* PLEASE URGE YOUR FRIENDS TO ATTEND THE GENERAL ASSEMBLY
* THIS ISSUE IS EXTREMELY IMPORTANT
TO OUR COMMUNITY’S SURVIVAL
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Date: May 14, 2008
Dear Parish Members,
According to the general assembly agenda we shall be presented with a "new" corporate structure to be considered for adoption by our parish.
The proponents’ reason for the creation of the "new entities" is flawed.
I believe that if this community embarks upon a course of action which shall "ADOPT" the recommendation of the creation of the "entity-structures" as shall be proposed at the general assembly, this community shall be committing a grievous mistake in judgment; and that is, regardless of whether or not any real property will be transferred now or at some time in the future.
The parish should NOT under any circumstances create any entity which will have as a member or a manager of an LLC, or a shareholder of a corporation, the parish itself, either alone or in any
limited capacity.
The reason is very simple. If a third party obtains a money judgment ("judgment creditor") against the parish - and the parish becomes a "judgment debtor"- ALL ASSETS of the parish are SUBJECT TO EXECUTION by the Sheriff of the Salt Lake County in order to satisfy the judgment [creditor]. It is common knowledge that one cannot otherwise protect (other than insurable losses) the parish’s assets from a judgment creditor.
For the reasons stated in the preceding paragraph, if the Archdiocese and/or the Metropolis become "judgment debtors" in any lawsuit, OUR PARISH’S ASSETS are going to be at risk. It would be a grievous mistake if we were to embark on such a course.
Please ask any lawyer of your choice the following simple questions:
1. Can a judgment creditor of the parish "reach" the parish’s assets? and,
2. Are the benefits, that would be accruing to the parish under any structure which may be established, considered "parish assets" ? and,
3. Can a "judgment creditor" reach those assets referenced in number 2 above?
If the answer to any one of the 3 questions is answered affirmatively, we all lose. The community loses its assets to the extent of the amount of the judgment, and only reduced by any amount of applicable insurance.
A person CANNOT be a little pregnant. NONE of us should be permitted nor allowed to place at risk OUR community’s assets.
There is only ONE WAY TO PROTECT the community. Follow through with the corporate structure that this parish created by a 72% majority. It is of record with the Utah Division of Corporations.
Any other step leads to risk. And we all should be risk averse for the community’s assets.
Thank you for allowing me to express my point of view.
Best regards to all,
Nick J. Colessides
P.S. The enclosed Deseret News story is very timely. We need NOT endanger the community’s assets.
Nick J. Colessides
Attorney at Law
466 South 400 East, Suite 100
Salt Lake City, Utah 84111-3325
Tele: 801/521-4441
Fax: 801/521-4452
E-mail: njcolessides@msn.com
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