$4.1 Billion awarded to plaintiff in wrongful termination case

[WhipperSnapper]

This is the funniest story that I have read about in a couple weeks.

A guy who had an employment contract with a small company was dismissed after he complained about commission payments, so he sued them. The case went to arbitration and then the defendant company became arrogant and uncooperative with the arbitrator, refusing to participate in discovery and with the company's principal firing his defense counsel, going it alone. The defendant then refused to attend the arbitration hearing and even wrote a letter confirming that he knew about the hearing but that he was not planning to attend it.

The result? Using adverse inferences of facts against the Defendant, the arbitrator awarded a $4.1 billion judgment which included punitive damage awards. A court then confirmed the award and the Defendant never challenged it, forfeiting the ability to appeal or to challenge it.

http://www.alston.com/laborand...g/blog.aspx?entry=2177
http://www.employeerightspost....-ifreedom-communicati/
http://www.law.com/jsp/law/car...r.jsp?id=1202431506968

If any of you guys are up to doing some investigative research, I'd love to hear about the aftermath of this case. Is it true that an order to pay someone for employment compensation cannot be discharged in bankruptcy? From what I can tell, the company, iFreedom Communications, is now out of business and Ringgenberg has not been found. Did he flee the country? Has anyone been able to find out anything more about this case and what will actually happen to the people involved?

http://www.securitieslaw-attor...RecentJudgements.shtml

The arbitrator, a retired judge, determined that the defendants had obtained Mr. Chester's services by means of false representations and fraud. In addition to all unpaid salary, commissions, travel expense reimbursements, and compensation for unissued company stock and unreturned intellectual property, the arbitrator awarded statutory penalties, interest, attorneys' fees, and punitive damages equal to three times the compensatory damages.

"Significantly, the arbitrator held all defendants jointly and severally liable," said Mr. Buchwalter. "Mr. Ringgenberg won't be able to hide behind corporate entities that were his alter egos."

"It was the combination of the defendants' representations to their investors regarding sales revenue and their admissions regarding revenue growth rates that gave rise to the override commission figure that drove this large award," said Mr. Bernstein. "Employers should be aware that, if they make promises, they have to keep them."

 

[Vette73]

.

 

[Vette73]

Company will just file for bankruptcy and the person will get nothing. Unless the owner did not file his company as a Corp and/or pierced the Corp Veil.

The only reason for such a large amount it to make sure that when the company is sold/cut up he will get better % then others.

 

[WhipperSnapper]

I just added a little more info to the bottom of my post, taken from one of the Plaintiff's attorney's websites. I'm guessing that this Ringgenberg guy has fled the country with all of his assets. I wonder if a Court could turn this into a criminal matter by issuing a contempt of court finding (for failure to pay the judgment to the best of one's ability).

 

[MotF Bane]

4.1b, :laugh:

 

[FaaR]

Getting a judgement of $4.1bn against you just goes to show the accuracy of the old saying that if you choose to represent yourself then you've got an idiot for a client...

Anyway, holy smokes! Fined $4.1bn simply for firing a guy and obstructing during the court proceedings? That seems just a tad overexaggerated IMO, especially as the fired dude will apparantly never see a single penny of it. What business was this Ringgenberg in anyway to be such a slippery fella, protection rackets perhaps?

 

[WhipperSnapper]

Will the Plaintiff ever see any of it? I'm guessing that the answer is no, but according to this clip, not because the Plaintiff can't touch the Defendant because of a corporate veil:

"Significantly, the arbitrator held all defendants jointly and severally liable," said Mr. Buchwalter. "Mr. Ringgenberg won't be able to hide behind corporate entities that were his alter egos."

 

[Thump553]

If the finding of fraud is upheld in bankruptcy court (that issue would most likely be retried there) then the debt is nondischargeable.

And Marlin you are wrong-the aribitrator has already pierced the corporate veil, so all the defendants are liable-regardless of any corporate shell.

You do not piss off a federal judge, retired or not. Acknowledging the hearing, then failing to attend, then failing to appeal-the defendant is a first class fool.

 

[heyheybooboo]

I'm thinkin' Tim Ringgenberg took the cash (if there was any) and made a dash.

Mr. Tim Ringgenberg is currently employed at iFreedom Communications International Limited in the position of Chairman and Chief Executive Officer. Pre-launch and start up ventures in the Internet sector require a specific blend of discipline and creativity. In order to successfully navigate the un-chartered waters of formulation companies, clarity on the vision along with the proper leadership skills must be maintained to drive the company forward.

Mr. Ringgenberg has the experience and ability to lead the Company from startup and pre-launch into momentum and hyper growth.

Mr. Ringgenberg was raised in the mid-west then re-located to attend Arizona State University and University of Phoenix in Phoenix, Arizona. A Bachelor of Science degree in Business Management prepared him for Account Executive and Management positions with fortune 500 companies including MicroAge and CompUSA corporate sales divisions before founding iFreedom.

LOL at 'Hyper Growth'


P. Thomas Chester
Chief Marketing Officer and Executive Vice President

Mr. P. Thomas Chester is the Chief Marketing Officer and Executive Vice President of iFreedom Communications since July, 2004.

Mr. Chester's experience restrain running marketing organizations that have recruited over 200,000 independent representatives in ten years, training over 12,000 duly licensed Life and Security representatives that ranked as the 4th largest Broker-Dealer in the U.S., and establishing markets in Canada, Mexico, Puerto Rico, Guam, Taiwan, Japan, ... and the Philippines. A graduate of Ohio University, Mr. Chester received his degree in electrical engineering. However, knowing his passion and creativity was in marketing and sales he began his career in financial services and received numerous awards for outstanding performance including Top Rookie and member of the Million Dollar Round Table for six consecutive years.

After learning and understanding the power of direct ?word of mouth? sales Mr. Chester implemented key marketing programs for Surety Life that acquired over 38,000 agents and billions in sales then moved to a division if ?ING? that acquired hundreds of thousands of agents in many countries in North America and Asia. Mr. Chester?s experience includes running marketing organizations that have recruited over 200,000 independent representatives in ten years, training over 12,000 duly licensed Life and Security representatives that ranked as the 4th largest Broker-Dealer in the U.S., and establishing markets in Canada, Mexico, Puerto Rico, Guam, Taiwan, Japan, and the Philippines.

 

[WhipperSnapper]

Originally posted by: Thump553
If the finding of fraud is upheld in bankruptcy court (that issue would most likely be retried there) then the debt is nondischargeable.

And Marlin you are wrong-the aribitrator has already pierced the corporate veil, so all the defendants are liable-regardless of any corporate shell.

You do not piss off a federal judge, retired or not. Acknowledging the hearing, then failing to attend, then failing to appeal-the defendant is a first class fool.

So, the Defendant could try to get out of it by filing for personal bankruptcy, but corporate bankruptcy won't protect him since the veil was pierced.

 

[Thump553]

Originally posted by: WhipperSnapper

Originally posted by: Thump553
If the finding of fraud is upheld in bankruptcy court (that issue would most likely be retried there) then the debt is nondischargeable.

And Marlin you are wrong-the aribitrator has already pierced the corporate veil, so all the defendants are liable-regardless of any corporate shell.

You do not piss off a federal judge, retired or not. Acknowledging the hearing, then failing to attend, then failing to appeal-the defendant is a first class fool.

So, the Defendant could try to get out of it by filing for personal bankruptcy, but corporate bankruptcy won't protect him since the veil was pierced.

My statement was assuming a personal bankruptcy-if the debt was incurred by fraud and the claimant proves this, then it will not be dischargeable. Short answer-this debt will probably survive a bankruptcy by any form of entity that was a defendant.

Now comes the hard part-collecting the judgment. Nearly every lawyer has a drawer full of paper judgments that he or she will never see a dime on.

 

[WhipperSnapper]

Originally posted by: Thump553Now comes the hard part-collecting the judgment. Nearly every lawyer has a drawer full of paper judgments that he or she will never see a dime on.

This Ringgenberg guy doesn't strike me as an indigent man but I'm guessing that he's figured out a way to either hide his assets or outright flee the country by now. If he just completely ignores the court's order ordering him to pay up, could be be subject to a criminal contempt of court charge?

I'm sure we'll never hear the rest of the story unless someone contracts the Plaintiff's attorneys and asks for more details, assuming they'd even divulge them. I sure would like to hear the rest of the story.