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IN RE STANWICH FINANCIAL SERVICES CORP.

Bankruptcy No. 01-50831, Adversary No. 02-5023.

377 B.R. 432 (2007)

In re STANWICH FINANCIAL SERVICES CORPORATION, Debtor. Official Committee of Unsecured Creditors of Stanwich Financial Services Corporation, Plaintiff v. Jonathan H. Pardee, Carol Havican, as Trustee of the Jonathan H. Pardee Charitable Remainder Trust, Carol Havican, in her individual capacity, Ogden H. Sutro, Virginia S. Morse, as Co-Trustee of the Dunbar Wheeler Trust, Peter M. Dodge as Co-Trustee of the Dunbar Wheeler Trust, Virginia S. Morse in her individual capacity, Peter M. Dodge, in his individual capacity, Bear Sterns & Co., Inc., First Union Capital Markets Corporation f/k/a Wheat First Securities, Inc., Hinckley, Allen & Snyder, LLP, Cameron & Mittleman, LLP, Scott A. Junkin, P.C., Robinson Humphrey Co., LLC, Defendants.

United States Bankruptcy Court, D. Connecticut, Bridgeport Division.

October 26, 2007.

Attorney(s) appearing for the Case

John B. Nolan, Esq., Day Pitney, LLP, Hartford, CT, for Liquidating Agent.

Lawrence Grossman, Esq., Zeisler Zeisler, PC, Bridgeport, CT, for Defendants, Jonathan H. Pardee and the Pardee Charitable Remainder Trust.

Rene P. Tatro, Esq., Tatro, Tekosky, Sadwick, LLP, Los Angeles, CA, for Defendants, Jonathan H. Pardee and the Pardee Charitable Remainder Trust.

Charles J. Filardi, Jr., Esq., Filardi Law Offices, LLC, New Haven, CT, for Consumer Portfolio Services, Inc.

Christopher Little, Esq., Little, Medeiros, Kinder, Bulmand & Whitney, P.C., Providence, RI, for Consumer Portfolio Services, Inc.

MEMORANDUM AND ORDER ON MOTION TO APPROVE SETTLEMENT AND COMPROMISE

ALAN H.W. SHIFF, United States Bankruptcy Judge.

The matter before the court presents an unusual scenario. The plaintiff, now known as the Liquidating Agent, see n. 1, supra, filed the instant motion for approval of a Settlement and Compromise ("Settlement") with Consumer Portfolio Services, Inc. ("CPS"),3 a stranger to this adversary proceeding...

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