Success Story: Creative Approach Sees Clients Paid

Clients – two Utah-based commercial lenders – had obtained judgment for $766,000 in Utah courts against Debtor – a large Oregon corporation. Clients retained the services of David W. Owens to collect on that judgment in Oregon. Mr. Owens knew Debtor to be financially unstable and under investigation by state authorities, making collection far less than certain. News surfaced, however, of a $180 million transaction intended to save Debtor from bankruptcy. Our attorneys were able to use this information to pressure Debtor by obtaining a court order blocking any sale by Debtor until it could answer questions under oath about any assets that might be used to pay Clients. Fearing the loss of its sale, Debtor quickly approached Mr. Owens to negotiate a settlement offer acceptable to Clients, paying them $425,000 directly from the closing of the transaction. Debtor ultimately filed for Chapter 7 bankruptcy dissolution anyway, some eight months later. Had Mr. Owens not advised Clients to accept the settlement, they likely would have received nothing at all.