Comment by crazygringo

16 hours ago

But the end of the blog post says the man sued and won.

But the store closed to get out of paying.

Which makes no sense if the store was corporate-owned. So why isn't the corporation paying?

The store in question was a franchise so potentially the liability will be limited to just the assets of that franchise. But there's a lot of weird stuff here and it looks like the corporation may have (in a legally questionable manner) removed assets from the store to the corporation during proceedings to shield them.

  • A representative of the corporation, while taking over the store, expressly states that the corporation is taking over the consignment agreement, on camera and with several witnesses.

  • Courts are allowed to pierce the corporate veil when that happens.

    • They absolutely are and a good lawyer, I'm sure, could audit the accounts and find some misdeeds - the issue is that the auditing and even getting access to those records in court is extremely expensive. To my knowledge there isn't a way to trigger that kind of a discovery in small claims so you need to go through the pricey legal system.

      The money in question here is the proceeds from selling a collection valued at 200k - the recovery (unless you start to get into punitive territory) is likely to be rather meager... and it's a large risk so there may be few bites on firms willing to take it on purely commission.

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