Giant Wins Judgment Against Former BikeE Investors



Z

Zach

Guest
http://www.bicycleretailer.com/bicy...article_display.jsp?vnu_content_id=1000817555

Giant Wins Judgment Against Former BikeE Investors

FEBRUARY 25, 2005 -- EUGENE, OR (BRAIN)--A federal judge ordered two of
BikeE's former investors to pay Giant more than a quarter-million
dollars for bikes the Taiwanese manufacturer delivered to the
now-defunct recumbent bike company, which had not paid for them.

Federal magistrate judge Thomas Coffin ruled that John Acres, a major
investor in BikeE and its one-time president, and his partner Richard
Carone will have to pay Giant $254,610. Coffin also awarded Giant
attorney fees and ordered that "other appropriate assets of BikeE are
to be made available to Giant for purposes of satisfying its judgment
against BikeE for breach of contract."

Coffin focused his ruling on BikeE's July 18, 2002 sale of 627 CT model
bicycles to Bigha Manufacturing, a company Acres had founded in April
of that year, for $254,610. Giant had manufactured the bikes for BikeE,
had not been paid for them, and had a secured interest in them, all of
which the defendants knew, the judge ruled.

BikeE then used the sale proceeds to pay debts it owed Acres and
Carone, bypassing Giant.

The sale itself was not illegal, since Bigha paid BikeE, the judge
found. But "BikeE's sale of the CT bicycles to Bigha with the specific
purpose of transferring the proceeds to Acres and Carone, however, was
wholly inequitable and inappropriate," Coffin wrote.

Coffin had ruled in July that BikeE owed Giant more than $370,000, plus
interest and attorney fees. BikeE ceased operating in 2002, however,
and was unable to pay the judgment, so Giant pursued Acres, Carone and
Bigha for payment. Whether BikeE has any remaining assets that will
close the nearly $125,000 gap between the judge's award this week and
the total owed remains to be seen.
 
According to a poster named "intheknow" on BROL:

"Actually, the information regarding the judgement in that article is
false. Carone and Acres are not required to pay Giant's attorney's
fees. While Giant did get a judgement for $250,000, they were
originally suing for $371,000 plus 41% interest + attorney's fees.
Their lowest settlement offer was over $400,000.

Giant ended up paying over $400,000 in attorney's fees in this matter,
so even if they collect the $250,000 judgement it's been a losing cause
for them.

BikeE is proceeding with its claim that it was "murdered" by BikeE.
Surely, this case will require even more expenses on the part of Giant
and I have heard that Carone and Acres believe strongly in this case
and are not interested in using it as a bargaining chip against the
current judgement."

Trials such as these are filled with complicated claims, and
counterclaims. It appears as though the judge just split it down the
middle. Oftentimes opposing sides in litigation will try to make the
other bleed. It sounds like Acres is inflicting wounds upon Giant,
although they've hurt him to the tune of a quarter million as well. I
guess it ain't over yet.
 
F

Freewheeling

Guest
Yikes! I was going to make some gag about a giant having ridden Tom's high
altitude training bike with unfortunate consequences:

http://www.cyclingnews.com/news.php?id=photos/2005/news/feb05/germany-cycling-tandem-61

but these are serious shenanigans. I guess it wasn't exactly the "people's
recumbent company" after all, huh?

Good for Giant.


"Zach" <[email protected]> wrote in message
news:[email protected]
> http://www.bicycleretailer.com/bicy...article_display.jsp?vnu_content_id=1000817555
>
> Giant Wins Judgment Against Former BikeE Investors
>
> FEBRUARY 25, 2005 -- EUGENE, OR (BRAIN)--A federal judge ordered two of
> BikeE's former investors to pay Giant more than a quarter-million
> dollars for bikes the Taiwanese manufacturer delivered to the
> now-defunct recumbent bike company, which had not paid for them.
>
> Federal magistrate judge Thomas Coffin ruled that John Acres, a major
> investor in BikeE and its one-time president, and his partner Richard
> Carone will have to pay Giant $254,610. Coffin also awarded Giant
> attorney fees and ordered that "other appropriate assets of BikeE are
> to be made available to Giant for purposes of satisfying its judgment
> against BikeE for breach of contract."
>
> Coffin focused his ruling on BikeE's July 18, 2002 sale of 627 CT model
> bicycles to Bigha Manufacturing, a company Acres had founded in April
> of that year, for $254,610. Giant had manufactured the bikes for BikeE,
> had not been paid for them, and had a secured interest in them, all of
> which the defendants knew, the judge ruled.
>
> BikeE then used the sale proceeds to pay debts it owed Acres and
> Carone, bypassing Giant.
>
> The sale itself was not illegal, since Bigha paid BikeE, the judge
> found. But "BikeE's sale of the CT bicycles to Bigha with the specific
> purpose of transferring the proceeds to Acres and Carone, however, was
> wholly inequitable and inappropriate," Coffin wrote.
>
> Coffin had ruled in July that BikeE owed Giant more than $370,000, plus
> interest and attorney fees. BikeE ceased operating in 2002, however,
> and was unable to pay the judgment, so Giant pursued Acres, Carone and
> Bigha for payment. Whether BikeE has any remaining assets that will
> close the nearly $125,000 gap between the judge's award this week and
> the total owed remains to be seen.
>
 
F

Freewheeling

Guest
<[email protected]> wrote in message
news:[email protected]
> According to a poster named "intheknow" on BROL:
>
> "Actually, the information regarding the judgement in that article is
> false. Carone and Acres are not required to pay Giant's attorney's
> fees. While Giant did get a judgement for $250,000, they were
> originally suing for $371,000 plus 41% interest + attorney's fees.
> Their lowest settlement offer was over $400,000.
>
> Giant ended up paying over $400,000 in attorney's fees in this matter,
> so even if they collect the $250,000 judgement it's been a losing cause
> for them.


Thanks for the correction. Strictly speaking, though, if Carone et al's
fees where anything like Giant's they're further behind. It's the lawyers
who are making out.

>
> BikeE is proceeding with its claim that it was "murdered" by BikeE.


I'm afraid I don't understand. Is this some sort of typo?

> Surely, this case will require even more expenses on the part of Giant
> and I have heard that Carone and Acres believe strongly in this case
> and are not interested in using it as a bargaining chip against the
> current judgement."
>
> Trials such as these are filled with complicated claims, and
> counterclaims. It appears as though the judge just split it down the
> middle. Oftentimes opposing sides in litigation will try to make the
> other bleed. It sounds like Acres is inflicting wounds upon Giant,
> although they've hurt him to the tune of a quarter million as well. I
> guess it ain't over yet.
>
 
M

Mark Leuck

Guest
Nobody really wins those lawsuits, the judgment usually doesn't cover the
lawyer expenses much less the money involved in the product sale they were
trying to recover.

"Freewheeling" <[email protected]> wrote in message
news:[email protected]
> Yikes! I was going to make some gag about a giant having ridden Tom's

high
> altitude training bike with unfortunate consequences:
>
>

http://www.cyclingnews.com/news.php?id=photos/2005/news/feb05/germany-cycling-tandem-61
>
> but these are serious shenanigans. I guess it wasn't exactly the

"people's
> recumbent company" after all, huh?
>
> Good for Giant.
>
>
> "Zach" <[email protected]> wrote in message
> news:[email protected]
> >

http://www.bicycleretailer.com/bicy...article_display.jsp?vnu_content_id=1000817555
> >
> > Giant Wins Judgment Against Former BikeE Investors
> >
> > FEBRUARY 25, 2005 -- EUGENE, OR (BRAIN)--A federal judge ordered two of
> > BikeE's former investors to pay Giant more than a quarter-million
> > dollars for bikes the Taiwanese manufacturer delivered to the
> > now-defunct recumbent bike company, which had not paid for them.
> >
> > Federal magistrate judge Thomas Coffin ruled that John Acres, a major
> > investor in BikeE and its one-time president, and his partner Richard
> > Carone will have to pay Giant $254,610. Coffin also awarded Giant
> > attorney fees and ordered that "other appropriate assets of BikeE are
> > to be made available to Giant for purposes of satisfying its judgment
> > against BikeE for breach of contract."
> >
> > Coffin focused his ruling on BikeE's July 18, 2002 sale of 627 CT model
> > bicycles to Bigha Manufacturing, a company Acres had founded in April
> > of that year, for $254,610. Giant had manufactured the bikes for BikeE,
> > had not been paid for them, and had a secured interest in them, all of
> > which the defendants knew, the judge ruled.
> >
> > BikeE then used the sale proceeds to pay debts it owed Acres and
> > Carone, bypassing Giant.
> >
> > The sale itself was not illegal, since Bigha paid BikeE, the judge
> > found. But "BikeE's sale of the CT bicycles to Bigha with the specific
> > purpose of transferring the proceeds to Acres and Carone, however, was
> > wholly inequitable and inappropriate," Coffin wrote.
> >
> > Coffin had ruled in July that BikeE owed Giant more than $370,000, plus
> > interest and attorney fees. BikeE ceased operating in 2002, however,
> > and was unable to pay the judgment, so Giant pursued Acres, Carone and
> > Bigha for payment. Whether BikeE has any remaining assets that will
> > close the nearly $125,000 gap between the judge's award this week and
> > the total owed remains to be seen.
> >

>
>
 
S

Simon Kellett

Guest
[email protected] writes:

> Giant ended up paying over $400,000 in attorney's fees in this matter,
> so even if they collect the $250,000 judgement it's been a losing
> cause for them.


I guess they are sending a message to other companies: we will chase you
so do not screw with us !

--
Simon Kellett, Darmstadt, Germany | http://home.arcor.de/zoxed
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