Following the business beyond its original name
After an earthmoving company defaulted, related parties asserted ownership of its equipment and routed business through other entities. The bank reconstructed those relationships through contracts, invoices, checks, fuel records and testimony. The evidence connected the same personnel and equipment to work performed under different business names.
The trial result
Following a four-day bench trial, the district court found fraudulent transfers and successor liability involving Golden West, LLC, and a conspiracy to defraud the bank. It also pierced Golden West’s corporate veil to impose personal liability on LaDon Peterson. The court entered a $1,265,406 judgment against Golden West and LaDon, jointly and severally with other defendants.
The litigation also resulted in default judgments against other defendants, including sanctions for discovery misconduct.
The appeals and attorney fee award
The Minnesota Court of Appeals affirmed the challenged judgments in August 2016. In a separate November 2017 decision, it affirmed an additional $316,581.32 attorney-fee award. That opinion describes findings of a pattern of fraud, civil conspiracy and fraudulent transfers that complicated the bank’s collection efforts.
Both appellate opinions are unpublished. The amounts stated here are court awards, not a statement that every awarded dollar was collected.
Experience relevant to business fraud and asset recovery
This representation illustrates why business litigation may need to follow revenue and assets beyond the original borrower. Matthew’s fraud and asset-recovery work considers the conduct of related businesses and insiders, the evidence connecting them to the transactions, and the claims available to reach property or impose liability.
Explore fraudulent transfers and asset recovery and successor liability and piercing the corporate veil.
Court records
Trude v. Peterson Earth Movers, Inc., Nos. A15-0378, A15-1863 and A15-1864 (Minn. Ct. App. August 15, 2016) (unpublished).
Trude v. Glenwood State Bank, No. A17-0229 (Minn. Ct. App. November 20, 2017) (unpublished).
Results depend on the facts and law of each matter.