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MN K | What are the penalties not to meet a court order? |
Hello all,
My husband is in a business lawsuit against his business partners. And the judge has ORDERED my husband's business partners to submit all financial records by end of this month.
In my guess, I don't think they will provide the required paperwork or if they do provide, it will not be everything they should provide.
Therefore, I'm wondering will his business partners get any penalties if not meet the requirements from the judge's order? If yes, what types of penalties?
FYI, the business is a corporation.
I just hope the judge will not give them any extension cuz we've waited way long enough to get to this stage.
Please advise any info you know of. Thank you! |
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El_Nimo
 |
Your husband should have a lawyer but in the event he doesn't, your husband can ask the judge to sanction the defendants for not turning over their paperwork.
El |
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bsdespain
 |
No prison time. Folks this is a civil lawsuit, not a criminal prosecution. If his business partners fail to comply, you can move for a summary judgement. If the suit is against the corporation, you might have to pierce the corporate veil if the corporation has no assets. If they refuse to cooperate, sanction (fines) are a possibility.
Here's another hint - if you have waited this long you are going to wait even longer to actually get a judgment. Once you have a judgment, you need to collect on it and that's a time-consuming process. Collecting from a defunct corporation (or piercing the corporate veil and suing the people behind the corporation) is often nearly impossible. |
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Faye H
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It's up to the Judge on the case but if they don't comply with a court order, he will likely hold them in contempt of court. He could toss them in jail until they comply or he could fine them. |
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Brian G
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They would be in contempt of court and pay big fines and/or sit in a jail cell until they comply. |
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Pinky Lee
 |
I have been in a similar situation, but it was an attempt to collect child support from my ex, his business is a corporation. An administrative law judge ordered him to supply personal taxes and business taxes. His accountant did finally supply them, but they blackend out all of the denomination figures. The judge did absolutely nothing and accepted the testimony of his accountant, and of coarse you know who's best interest he had in mind.
If you know where they do business or bank you can subpoena their financial records and contracts. I did this and found out alot. People usually put their financial info in a positive manner when doing business with a bank or applying for credit.
Another possible source of financial information on a business is if your State Corporation Division has online info you can look at UCC filings. The info tells you who they are doing business with or who they have contracts with and so you know who to subpoenia.
They are probably stalling because they are fast a work to hide what are contained in the records.
Have your attorney supoenia the records himself, if he hasnt already or ask your attorney to make a request to the judge to allow your husband to make an estimate of the value that he feels he has due to him since the partner's are unable/unwilling to provide the information. Or tell your attorney to petition the court asap for contempt of court charges if the information is not supplied within an alloted period of time.
In my experience a judge will allow cases to be dragged out on and on and if you are the one that needs the info, it puts you at a disadvantage.
If your finances allow a private investigator can be helpful, but they are expensive. If you cant... do you own investigating and try to compile what financial info that you can to present to the court. |
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Akbar B
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They and the corporation will be held in contempt of court and will be fined a penalty, the amount depends upon the judge and if the records are still not turned over in the time specified then prison is a real possibility. |
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Frank Castle
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Prison. |
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