Blueprints on ebay?

Dave T. said "Having been involved with several bankruptcies I can tell you from the creditor's prospective it is a no win situation." That pretty much sums it up. Why would we as creditors throw more money at more lawyers to go after another lawyer who gamed the system in a bankruptcy proceeding ? That sounds like the proverbial Mother of financial sinkholes!
Rob

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Originally Posted by PJ Grady Inc.

As an original DMC dealer we performed warranty repairs for which we we never reimbursed by DMCL to the tune of about 15K. Because we knew the company was in trouble and would not likely be in business much longer we ordered, in the final months, about the equivalent amount of replacement parts to cover those expenses. When the Detroit bankruptcy court brought the case to trial they basically discharged all debts incurred by DMCL and simultaneously brought to trial all debts owed to DMCL. I know that is SOP in these cases. We had to hire a Detroit based attorney at the rate of $500- per hour (In 1983 dollars!) to represent us. By the time the case went to court the attorney for the bankruptcy proceedings David J. Allard (IIRC the exact name. I could be wrong on the middle initial) allowed that we had a legitimate defense but that the court had to get something so we settled at 10 cents on the dollar ($1500-)which sounded good on paper. The rub was that combined with our lawyer's bill we spent about 13K to get our day in court. We came out losing 2K less than not fighting the case so it was almost a wash. What bothered me most was seeing the son(s?) of the prosecuting attorney benefit from the sale of all these paper records which the court really had no use for in the first place. These records turned into highly sought after collectible assets over time. For instance I was told the initial stock certificate sold for 15K for that single piece of paper! So when you extrapolate over many thousands of records you can see the potential income from this was sizable to say the least. Apparently it was enough to put one or more of his sons through law school with much more left to sell. This income should have gone to actual creditors and/or some effort could have been extended to try and keep the more important documents together for historical purposes. Neither of those things happened but somebody made a windfall profit of likely hundreds of thousands of dollars with no end in sight. A judicial system that allows this to happen is broken and needs fixing.
Rob

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Middle initial was W I believe. He passed away a few years ago.
http://deathnotices.michigan.com/vie....php?id=327385

Out of curiosity, how were you able to order parts? Reason I ask is because of a story I heard from a former sales manager. Allegedly Walt Epprecht's Las Vegas Dodge was owed over $32K or so in warranty work from DMC, so in turn they ordered an almost equal amount of parts from DMC. Vehicle accessories like ski racks & floor mats, and then other easily salable parts like wheels, engines, transmissions, body panels, etc. Then when DMC sent them the bill, the dealership sent back a letter that they'd remit payment for the parts order once they were paid for the warranty work owed. The next day DMC sent out a telex to all dealerships that any parts orders were then to be cash and carry only with no net-30 terms allowed.

Did DMC change this policy back later on, or is that story not true?

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Originally Posted by DMCVegas

Middle initial was W I believe. He passed away a few years ago.
http://deathnotices.michigan.com/vie....php?id=327385

Out of curiosity, how were you able to order parts? Reason I ask is because of a story I heard from a former sales manager. Allegedly Walt Epprecht's Las Vegas Dodge was owed over $32K or so in warranty work from DMC, so in turn they ordered an almost equal amount of parts from DMC. Vehicle accessories like ski racks & floor mats, and then other easily salable parts like wheels, engines, transmissions, body panels, etc. Then when DMC sent them the bill, the dealership sent back a letter that they'd remit payment for the parts order once they were paid for the warranty work owed. The next day DMC sent out a telex to all dealerships that any parts orders were then to be cash and carry only with no net-30 terms allowed.

Did DMC change this policy back later on, or is that story not true?

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Claw Back also applies to parts and services, not just cash. The trustee would just have to request the court to issue a judgement to get the money. As for hiring a lawyer at this point, yes, it can be a black hole but this is not bankruptcy court so you have a fairer chance. Is it worth it, I don't know.

A lawyer speaking to a prospective client, "Your case has merit, just how much justice can you afford"?

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Originally Posted by DMCVegas

Middle initial was W I believe. He passed away a few years ago.
http://deathnotices.michigan.com/vie....php?id=327385

Out of curiosity, how were you able to order parts? Reason I ask is because of a story I heard from a former sales manager. Allegedly Walt Epprecht's Las Vegas Dodge was owed over $32K or so in warranty work from DMC, so in turn they ordered an almost equal amount of parts from DMC. Vehicle accessories like ski racks & floor mats, and then other easily salable parts like wheels, engines, transmissions, body panels, etc. Then when DMC sent them the bill, the dealership sent back a letter that they'd remit payment for the parts order once they were paid for the warranty work owed. The next day DMC sent out a telex to all dealerships that any parts orders were then to be cash and carry only with no net-30 terms allowed.

Did DMC change this policy back later on, or is that story not true?

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No that sounds right but we were a bit ahead of the curve as they stopped paying warranty claims long before the end came. We started matching our parts orders to money owed early on in the game.
Rob