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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.
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.
