Wagenseller Law Firm recently represented a wheel manufacturing firm in Orange County against a retailer who had taken delivery of purchases amounting to over $1 million and never paid for them. After failing to appear in court, Laine T. Wagenseller brought a motion for default judgment and our client was awarded the full amount he sought.
However, prior to collection, the retailer filed a motion to set aside judgment, asserting that the awards violated his company’s status as a Chapter 11 bankrupted firm. WLF conducted a thorough investigation of his claims, and found that in the course of filing for bankruptcy, the defendant retailer had hidden assets from his trustees, destroyed and falsified records, knowingly made false oaths in connection with his case, and fled the country to avoid his debtor examination.
With this evidence, the defendant’s motion to set aside judgment was rejected. Had WLF not defeated the motion, the case would have been reopened and sent to trial, likely forcing our client to engage in another full year of costly litigation. We were happy to have secured this victory for our client.