w

M

MODESETT WILLIAMS PLLC

EXPERIENCED     TRIAL     LAWYERS

515 CONGRESS AVENUE

SUITE 1650

AUSTIN, TX 78701

512.472.6097

FACSIMILE: 512.481.0130

OUR LATEST News AND Updates

 

what's happening in our world

Collecting from the "Asset-Free" Defendant

Modesett Williams - Monday, November 09, 2015

We represented a family in a nursing home case. The liability was clear, but the defendant claimed to be without collectable assets and on the verge of financial ruin. Settlement discussions stalled and the trial date loomed. We dug a little deeper into the defendant's financial reporting to the State and found hundreds of thousands of dollars paid to related parties for horse stall rental, private jet leasing and redundant and exorbitant "consulting" fees. We wrote the defendant a new demand letter pointing out this remarkable inconsistency and pointing to corporate veil piercing law, which introduced fraud concepts into the case. The case settled for the new demand within 72 hours.


Our take-away: There is often more than meets the eye with the "single-asset, bankruptcy remote entity." Though designed to limit ownership liability, these entities often indirectly fund related entities with ridiculous "expenses."

Comments
Post has no comments.
Post a Comment




Captcha Image

Trackback Link
http://www.modwill.com/BlogRetrieve.aspx?BlogID=12456&PostID=762287&A=Trackback
Trackbacks
Post has no trackbacks.

Recent Posts


Tags


Archive

    © 2014 Modesett Williams, PLLC - Business Trial Lawyers - Austin Texas | All Rights Reserved | Privacy Policy                                                                                         512.472.6097