Tag Archives: Bankruptcy law

Average Joe SCOTUS: Taggart v. Lorenzen

Holy fuck! This case has more twists and turns than a Hillary Clinton campaign position.

So this dude Taggart, (The petitioner here) owned 25% of a real estate company. But Taggart sucked with money and investing, was feeling kinda broke, and decided to sell his share to his attorney to get himself some scratch.

However, Terry Emmert and Keith Jehnke also owned 25% each, and they were represented by a Stuart Brown, who was then represented by Shelley Lorenzen (The respondent in the case). My head already fucking hurts from this shit.

Anyway, Emmert and Jehnke thought Taggart selling to his attorney instead of them, was a total dick move, and sued his ass. They won, and Taggart was booted from his own fucking company, with the shares being sold to Emmert and Jehnke. The courts also ruled that Emmert and Jehnke’s attorney could sue for attorney’s fees, so of course he totally did.

Taggart was all like, “Fuck you, I’m filing for bankruptcy.” Which means, his creditors are supposed to go to the bankruptcy proceedings if they want money from him. After that, it’s Hands-Fucking-Off. That’s why it’s called bankruptcy “protection.”

Anyway, this deadbeat Taggart was awarded his bankruptcy, but Brown, the attorney for the two assholes who were trying to squeeze blood from a turnip, decided to sue Taggart anyway, for legal fees, as mentioned earlier, after he got his bankruptcy. Their argument was that Taggart had “returned to the fray” and therefore didn’t deserve protection.

So now Taggart is suing Brown (Lorenzen) for contempt saying, “Hey, those motherfuckers knew I was in bankruptcy, and came after me for money anyway. But Brown (Lorenzen) were like, we thought it was Saul Goodman (Slang for “It’s all good, man”). We didn’t know we couldn’t come after him. We thought he “returned to the fray.”

So 97 different fucking courts weighed in on this shit before it finally got to SCOTUS who were asked to decide if someone in bankruptcy protection can sue someone who comes after them after the bankruptcy, if they thought in good faith, it was OK to sue for that.

SCOTUS unanimously thought Lorenzen, Brown, Emmert, and Jehnke were the bigger assholes in all of this. They fucking knew better, and did it anyway. Judgement for Taggart.

Average Joe SCOTUS – Mission Product Holdings Inc. v. Tempnology LLC.

These people at Tempnology made some clothing and shit meant for people doing physical activities, that helped keep the wearer cooler. Not cooler like Chuck Norris, but cooler like the other side of the pillow.

Mission Product agreed to sell their product, so they had rights to the sell the product, deploy the technology in their own products, and to use Tempnology’s trademarks, logos, and shit.

Tempnology however sucked at business, and ran up operating costs to the point where they had to file bankruptcy. As a result, they sought to rescind their contract with Mission because of the financial strain that contract put on them. Basically, they wanted more money than the contract entitled them to.

Mission was like, “WTF, man? We have a deal, bitch!”

Tempnology was like, “Bankruptcy, motherfucker. Have you heard of it? Fuck you, and your contract too!”

Mission was then like, “Your inability to run your god damn company doesn’t mean that we should lose money, not being able to exploit the contract we have with you. You gave your word, douchebag!”

I assume Mission were using Tempnology’s technology in their own products where Tempnology wasn’t making much money off of it, because they weren’t making it themselves. But I’m guessing, so don’t quote me on that shit.

We all know bankruptcy puts a hold on debtors, but it also allows for the potential rejection of what the case referred to as executory contracts, which are basically contracts still in effect and not completed (or fully executed).

SCOTUS didn’t feel sorry for Tempnology at all, though. They were luck, “Screw your bankruptcy. Mission can keep exploiting your technology because you all had an agreement. You don’t get to reject that agreement entirely because you hired a shitty accountant or something.”

Judgement for Mission Holding 8:1. Gorsuch dissented, not even seeing how Mission was being unfairly damaged here. Maybe the other eight can explain it to him.

Read about the case or hear oral arguments here.