Better Watch Out…
I’m Telling You Why
This week, A+A obtained a judgment from the Multnomah County Circuit Court extending liability to an owner for his company’s $450,000 business debt.
The dispute began with that all too familiar situation–someone owes you money, he hides behind his corporate veil, he liquidates his corporate accounts, and you cannot collect the debt.
In this dispute, between two former partners of a car dealership, we pierced the corporate veil and convinced a judge to hold the individual liable along with his company. We also prevailed on our claim that the transfers out of his company were fraudulent.
As part of the judgment, we had the Court forbid the defendant from transferring money out of his accounts, to prevent the cat-and-mouse game of debt collection. The defendant may bury his head in the snow and ignore the Court’s order. If so, we have plowed the way for a contempt of court determination, an arrest warrant, and possible jail time. Now that’s a naughty list to avoid.
On the other side of the snow bank, last month we successfully defended against an attempt to extract money from our client, a prominent local business. A commercial contractor sought approximately $200,000 for alleged work performed on behalf of our client. After a week-long jury trial in the other Milwaukie (Wisconsin), we were able to reduce/offset the claims to only a few thousand dollars. Christmas does not come early, and you have to make Santa’s list if you expect a gift.