Legal Question in Civil Litigation in Florida

Breach of contract and fraudulent transfer of assets

For confidentiality I refer to 3 corporations as:

CHILD, PARENT, and USSUB.

CHILD in FL.

PARENT in Vancouver, BC, Canada

USSUB in DE, registered also in CT and NY

All list same addrress as PARENT.

All have or had X as senior officer.

X is CEO of PARENT, USSUB.

X was CEO of CHILD, until resignation in Jan 2003.

History:

I contracted to sell an internet domain to CHILD in 1999. I

passed title to CHILD in return for cash, stock, and a promissory note

payable in 10 installment over 5 years ending in Nov. 2004.

Timely payments until June 2003 were via checks from PARENT.

When June payment was late, I emailed the CFO of PARENT,

she claimed PARENT is liable for neither payment nor

return of domain, inability of CHILD to pay.

Sumarry: CHILD in breach, transfer of domain fraudulent.

My lay interpretation:

1. injunction to prevent change to domain.

2. Breach of contract against CHILD.

3. Fraudulent transfer of assets against parent.

4. File for return of sold property.

5. File for legal fees and expenses.

6. File for Punitive damages.

Questions:

1. Jurisdiction. FL, CT, NY, my home state MA or Vancouver?

2. How/where do I choose a lawyer?

3. other feedback?


Asked on 6/06/03, 2:41 pm

2 Answers from Attorneys

David Slater David P. Slater, Esq.

Re: Breach of contract and fraudulent transfer of assets

1. If child still in business can sue in FL.

2. Can sue parent in Vancover.

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Answered on 6/06/03, 3:13 pm
Randall Gilbert Gilbert & Caddy P.A.

Re: Breach of contract and fraudulent transfer of assets

NOTE: By reading the �Response� to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

RESPONSE: First, stop playing lawyer. Second, your question's answer will predominantly depend on the terms of your contract and promisory note and the rights and obligations that each party has incurred. Third, the law that governs the interpretation of your contract will be determined by the doctrine of lex loci contractus... meaning the place where the contract was finaly entered. Therefore you could wind up having Massachusets law apply and sue in Florida. I am only familiar with Florida law.

Based on the facts that you have provided you simply have an action for breach of contract and/or breach of promissory note. I can see no right for you to have the property returned (unless you retained a lien) nor injunctive relief as you have an adequate remedy at law, e.g. to sue for monetary damages (this is the general law despite whether the judgment is collectible or not).

Frauduelent transfers... are basically used in connection with collection cases when the original debtor is uncollectible and has transferred assets to another entity.

Attorneys Fees... An award to a prevailing party of legal fees will once again depend on which State's law will apply in your particular case and whether your contract or promissory note specifically provided for it.

Punitive Damages... You won't get them in Florida. The law is clear that there is no such thing as awarding punitive damages for a breach of contract or breach of promissory note. No matter how malicious someone is in breaching a contract why should the other party get puntive damages when they only contracted to receive x amount plus interest?

Jurisdiction... Once again will depend on (1) Which State's law applies; (2) Whether the contract had a forum selection clause; (3) The amount in controversy i.e. in excess of $75,000.00. In either event, if you are suing the CHILD then the forum can be in FLORIDA, but depending on further facts which have not been disclosed, may be elsewhere as well.

Choosing a lawyer... Choose a lawyer based on their competency and familiarity with contracts, who you will get along with, who will keep you informed and explain answers to your questions, and whose bills you can pay.

Sincerely yours,

Randall L. Gilbert, Esq.

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Answered on 6/08/03, 10:03 am


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