Quote:
Originally Posted by ukshaun
So, does Jerry have to hand over the statue?
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No but he has to pay 270K + interest
Seriously wow on jerry posting these like it cleared his name or something though :|
There is 2 claims brought though from this document:
1) The Court limits its ruling to the breach of contract/conversion claims related to the statue (the Fourth, Fifth and Sixth Claims for Relief)
This is the Shao Kahn statue I believe
2) Breach of fiduciary duty/wrongful distribution claim (First and Third Claims for Relief).
The statue is relatively clear so here is the answer to the first claim
66. As Macaluso was the sole officer and shareholder at the time Culture Shock made
the distributions complained of, the claim for fiduciary duty fails.
67. Given that he was the sole officer and the sole shareholder, all of his conduct
certainly inured great benefit to, himself, the sole shareholder.
68. No one that owned shares before the Closing Date was harmed or impaired by
Macaluso’s conduct.
69. Judgment on the fiduciary duty claim, therefore, is entered in favor of Macaluso
and against Culture Shock.
72. This claim can only be brought by “creditors of the corporation whose debts or
claims arose prior to the time of the distribution to shareholders” or by holders of shares having
preferential rights “to the extent the applicable shares with preferential rights were outstanding at
the time of the distribution.”
Basically from what I understand, and this is basically repeating what I said before, while it is a terrible job he didn't hurt any other shareholders cause he was the only share holder. Since they aren't suing because the company was misrepresented during the sale (maybe it was or wasn't I have no idea).
This bit is also interesting:
"While PCS has the ability to challenge these financial transactions, which apparently it is challenging in North Carolina, on this basis Culture Shock does not."
So more on this is going to be in the NC case. Just in terms of the charge of breaching his fiduciary duty to the company they did not win (because he had no fiduciary duty cause no one else had a stake).
Also in regards to tax evasion and stuff that's not going to be related to a civil suit with PCS. That's the IRS, state tax department, whatever's job. I'm pretty sure an individual can't sue another individual for tax fraud only the government can. Nor is there jail time in a civil suit from what I know, it should just be monetary.;p