Nelson Bowers II filed suit against Steve A. “Toby” McKenzie, Cleveland attorneys Richard Banks and Andrew Morgan of Banks and Associates; Chapter 11 trustee C. Kenneth Still; and Scott LeRoy, who served as Still’s attorney during the bankruptcy proceedings.
Based on court documents, the suit alleges wrongful prosecution and abuse of process.
It was filed Thursday in U.S. Bankruptcy Court for the Eastern District of Tennessee.
The suit filed by attorney John Konvalinka alleges in part that Bowers suffered damages as a result of McKenzie, Still and their attorneys’ willful and malicious acts in filing a meritless complaint in Bradley County.
Bowers is seeking compensatory and punitive damages; interest on the damages awarded and legal costs.
McKenzie was forced into Chapter 7 bankruptcy on Nov. 20, 2008, by creditors. On Dec. 20, 2008, McKenzie filed voluntary bankruptcy under Chapter 11. At that time, McKenzie’s assets were believed to have been in the range of $115 million with an estimated $154 million of debt owed to more than 50 creditors. The two cases were consolidated on Jan. 15, 2009.
Still was appointed trustee in February 2009 to oversee McKenzie’s business operations that included 100 percent ownership in 16 companies and 20 percent or greater ownership in 48 others.
