Carr asks to pay off debt to former partners over 10 years; Life expectancy is six years

Steve Korris Oct. 15, 2010, 7:38am



EAST ST. LOUIS – Rex Carr, who estimates his life expectancy at six years, claims he needs more than 10 years to pay $635,171.23 he owes to former partners.

On Oct. 5, Carr asked U.S. District Judge David Herndon to approve an initial payment of $25,000 and monthly payments of $5,000 thereafter.

At that rate, even without interest, repayment would take 10 years and two months.

"Your movant does not have the financial ability, resources or income to pay the award in one lump sum payment," Carr wrote.

"Your movant has exhausted his ability to raise cash toward payment of the sanction award and has no unencumbered assets that can be sold to raise cash for that purpose," he wrote.

Herndon entered judgment against Carr in May for harassing Stephen Tillery, Steven Katz and Douglas Sprong with lawsuits over fees.

Carr moved to reduce the judgment, pleading that misplaced reliance on former partners forced him to borrow millions.

He wrote that he borrowed all he could from banks, friends, relatives and former partners.

In pleadings, Carr claims that he cashed in all available assets including GI life insurance.

He has stated that his office barely meets expenses month to month by small settlements and loans to keep his staff employed.

He wrote that at age 83, his life expectancy was 6.7 years.

On Sept. 21, Herndon declined to reduce the judgment and directed the parties to work out how and when to pay it.

Two weeks later, Carr sought relief.

Carr told Herndon he sent a proposal to Tillery, Katz and Sprong on Sept. 24, asking them to send a viable plan if they didn't accept his plan.

On Sept. 28, Tillery, Katz and Sprong responded that his proposal was not acceptable.

Carr wrote that he had $121,335.53 in checking and savings accounts. He stated that he owned 900 shares of International Fuel stock worth $261.

He pays $34,710 a month on mortgages and secured notes.

He pays $103,000 a year to carry $3 million in life insurance as security for loan payments.

Carr wrote that his home might have a value of $100,000 and two automobiles might have a value of $17,000.

His income from his firm last year was $132,000.

He wrote that overall, he lost $275,000 last year.

His income from the firm this year is $318,000.

He wrote that he receives $2,752 a month from Social Security.

Carr led the firm of Carr Korein Tillery, which broke up in 2003.

He and lawyers at the new Korein Tillery agreed on terms for dividing future fees in pending cases, but disputes arose.

Carr filed a series of suits in different courts.

In one, Herndon ruled that he lacked jurisdiction but denied a motion for sanctions.

On appeal, Seventh Circuit judges in Chicago ordered Herndon to impose sanctions.

"The plaintiff is out of control and his lawyers are neglecting their duties as officers of the state and federal courts by failing to rein him in," Circuit Judge Richard Posner wrote.

Back in Herndon's court, Tillery's group proposed to sanction Carr by requiring him to pay defense bills totaling $1,439,913.71.

Herndon disallowed most of the bills, trimming the sanction to its current size.

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