this is in Indiana...
two brothers, the sole owners of Corp A. Through 25-30 they built a
reputable bookstore chain. They wound up nearly exclusively buy all
of their (consignment) stock from *one* business (a partnership). Then
things fell apart. They shuttered their last mall store in December 2005
with an outstanding $200+K debt. They returned stock of $50K and have
not declared bankruptcy, yet claim to be insolvent.
The Partnership (Plaintiff) wants *all* corporate records and has filed
suit. The Corporate brothers reply and ask for a Summary Judgement to
separate their Personal liability of the debt. There was a legit
Credit Line Agreement and Security Agreement betwixt the parties.
Now, the Court, faced with tossing it, or, playing for time under
an Extension (30 days) for Discovery.
It's a real mess. Is this a normal flow of "alter ego" to "veil"
for folks to save their homes, cars, dogs, etc? Ya, don't say get
"professional" legal help, it's simple, how does one get paper on
a corporation when it's "lost" $150K? No, you can't go fraud (criminal)
but it would be nice to see if all the dots where made & tees crossed
in a public record of incoporation. Seems they have $ for lawyers,
and to countersue, but they *have* gained wealth at the expense
of the Plaintiff. I'm not a lawyer, but seems pretty direct. Even the
Defense uses the term that the misrepresentation aspect might be "in play"
suggestions appreciated... he's got 30 days to accomplish Discovery...
--
two brothers, the sole owners of Corp A. Through 25-30 they built a
reputable bookstore chain. They wound up nearly exclusively buy all
of their (consignment) stock from *one* business (a partnership). Then
things fell apart. They shuttered their last mall store in December 2005
with an outstanding $200+K debt. They returned stock of $50K and have
not declared bankruptcy, yet claim to be insolvent.
The Partnership (Plaintiff) wants *all* corporate records and has filed
suit. The Corporate brothers reply and ask for a Summary Judgement to
separate their Personal liability of the debt. There was a legit
Credit Line Agreement and Security Agreement betwixt the parties.
Now, the Court, faced with tossing it, or, playing for time under
an Extension (30 days) for Discovery.
It's a real mess. Is this a normal flow of "alter ego" to "veil"
for folks to save their homes, cars, dogs, etc? Ya, don't say get
"professional" legal help, it's simple, how does one get paper on
a corporation when it's "lost" $150K? No, you can't go fraud (criminal)
but it would be nice to see if all the dots where made & tees crossed
in a public record of incoporation. Seems they have $ for lawyers,
and to countersue, but they *have* gained wealth at the expense
of the Plaintiff. I'm not a lawyer, but seems pretty direct. Even the
Defense uses the term that the misrepresentation aspect might be "in play"
suggestions appreciated... he's got 30 days to accomplish Discovery...
--
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