Legal Question in Business Law in Texas

We sold our Business in 2006. Our attorney failed to file the UCC1 required by the state of Texas to secure equipment etc. The buyers borrowed money using our equipment as collateral. They have defaulted on the note they owe us August 2008. They are now, after two years of legal wrangling, offering to return part of the collateral to us. They have sold some of it, even though it has a lien against it, and what is left they are returning to us. This equipment has two liens against it. Should we take it back and if we do can we sell it?


Asked on 4/13/10, 7:09 am

1 Answer from Attorneys

That is more of a business decision versus a legal one. Legally speaking, you can do anything to which you both agree. You need to determine the amount you were damaged (in dollars) and the defendant's ability to pay such damages and the likelihood you would win a judgment. Then subtract the amount of time, energy and money it would cost you to take this to the judgment. Compare that to what they're offering you and see if it makes sense from a business standpoint.

Dave

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Answered on 4/18/10, 7:47 am


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