To: Rick Smith who wrote (147 ) 3/27/1998 2:14:00 PM From: Peter Ralph Respond to
As a attorney, who owns far more fscx than I should, generally a company has 30 days after judgment is entered to pay it or put up an appeal bond for approximately 125% of the judgment amount. This assumes that fscx has exhausted all post-trial motions (new trial, judgment notwithstanding the verdict, remittitur, etc.) and assumes further that a final judgment has been entered. Appealling a final judgment without a bond does not stop the plaintiff from seizing assests to collect. Most likely, all assets have been pledged to secure bank debit, credit lines, etc. via UCC-1 financing statements. Assets mean a/r, inventory, furnishings, cash in the bank, etc. To me, all this means is this: someone has to put up a bond of about $1.25M. I can not believe that Peter Maddsen, a person in whom I have reposed great trust for several years, would allow the plaintiff's lawyers to lien up fscx's bank accounts, causing the banks to freeze the accounts and ultimately drive fscx into chapter 11. Peter is worth much more than the amount of the bond required to prevent this from happening. I can not believe that Peter would become so distracted by one employment lawsuit to allow this to happen. This case should have been settled. To gamble the future of a company on the decision of 6 laymen, sitting as jurors, is insanity, unless the company or its managers have a contingency plan and the means to execute same. So, in my view ( subject over course to review, correction and comment by competent attorneys licensed to practice law in Virginia), the bottom line is this: 1) bond, pay or settle the final judgment; or 2) file for chapter 11 protection prior to the date that the plaintiff, as a judgment creditor, can seize assets.
