Case Scenarios

This page offers a few typical scenarios, based on real cases, won by Mark P. Krones. Does your case sound familiar? If so, contact Mark for help.

Fact Scenario 1

Seller sold goods and merchandise to Buyer which is corporation. Buyer's president and other representatives repeatedly promised payment to Seller but did not pay. Buyer sold assets to Third Party and closed business. Seller sued president of Buyer as an individual based on alter ego and fraud. Buyer settled with Seller and pays Seller for the goods and merchandise.

Fact Scenario 2

Seller sold goods and merchandise to Buyer which was corporation. Buyer's president conveyed all assets to a limited liability company that he controlled and corporation was dissolved. Seller sued president of Buyer as an individual and new limited liability company based on alter ego, fraud, third party beneficiary, agent/principal and successor liability theories. New limited liability company paid Seller in full (only vendor that got paid).

Fact Scenario 3

Printer sold printing services and merchandise to Buyer who was corporation. Corporate president and wife used corporate account as their personal account taking huge draws each month out of business. Wife divorced husband and got multi-million dollar home in settlement. Corporation went belly up (i.e., out of business). Seller sued president and wife individually based on alter ego and fraud and liens wife's home. President from pressure from ex wife paid debt in full.

Fact Scenario 4

Seller sold goods to Buyer who is a corporation. Buyer files a Chapter 11 bankruptcy petition and filed an adversary complaint suing the Seller for the last $10,000.00 payment to Seller claiming it was a preferential transfer and seeks to recover the payment. Seller shows that Buyer got more goods after reception of the $10,000.00 payment, that this debt was for new value and not an antecedent debt. Seller obtained a dismissal of the preference action from the Buyer.

Fact Scenario 5

Employee is convinced by smooth talking President to lend Employer $50,000.00 as a cash advance on his credit card so Employer can make payroll for that month. President promises employee that he will get stock in company when company goes public, that employee will be part of the "inner circle" and will get stock in company at an advantageous price. Employer fails to pay Employee wages and Employee is forced to leave company so that he can support his family. Employee sued Employer and President individually based on fraud and alter ego and obtains a personal judgment against the President. President is served with debtor exam paperwork and a subpoena for tax returns and other personal financial documentation. President pays judgment off in full.

Fact Scenario 6

Seller sold produce to Buyer. Buyer was operating as a sole proprietor but business was actually a corporation. Buyer goes out of business. Seller sues Buyer and Buyer's president individually on undisclosed principal theory. Seller obtains judgment against both Buyer and Buyer's president. Buyer pays judgment in full.

Fact Scenario 7

Employee/salesperson diverted clients and accounts from Employer to his own competing personal business. Employee gave notice to Employer. Employer then discovered Employee's theft and competing business. Employer sued Employee for violation of confidentiality and non-solicit agreement for unfair business practices and other tortious acts. Employee settled with Employer rather than going to court.

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