Mediation Settlement Threat

[steven200738]

What is the name of your state (only U.S. law)? Minnesota. I have an existing judgment against a company. The company has asked us if we would be interested in mediation, so we agreed. Mediation has been scheduled. The defendants lawyer has notified us of their intentions after mediation. They will seek to vacate the judgment. Would that be considered a threat, possibly aimed at pressuring me to settle for a lesser amount? The reason I ask is because I suspect the defendant of bankruptcy fraud and tax evasion. If we are at mediation and let them know of my intentions of turning them in for bankruptcy fraud and tax evasion, would that be considered a threat? I have read and believe I understand the rules of mediation. If I'm understanding it correctly, we can say or produce documents and they cannot be introduced into court proceedings at a later date. I guess the real question here is would I be crossing a line if I told the defendant at mediation of my intentions to turn them in after mediation is complete? I certainly don't want to cross that line if there is one. Your comments and/or questions are welcome. Thank you.What is the name of your state (only U.S. law)?

 

[sandyclaus]

I don't understand.

You already have a judgment against the defendant. What exactly are you mediating?

If the defendant was present at the time that the judgment was entered, then I don't believe they can just file a motion to vacate it. They would have to appeal the judgment.

Anyone else want to chime in here? Is it just me that this doesn't make sense to?

 

[Ronin]

So during mediation you will offer to not turn the other side in for tax evasion if they agree to pay you what you are asking?

It is likely you would be crossing the line with what could easily be construed as extortion.

 

[JETX]

I have an existing judgment against a company. The company has asked us if we would be interested in mediation, so we agreed. Mediation has been scheduled.

To mediate WHAT??
You already have the judgment. Nothing to mediate, just start seizing their assets!!

The defendants lawyer has notified us of their intentions after mediation. They will seek to vacate the judgment.

Mediation, unless you agree that the judgment is not valid, has NO effect on the judgment. You will be a fool to proceed with mediating a JUDGMENT!!

Would that be considered a threat, possibly aimed at pressuring me to settle for a lesser amount?

No.

The reason I ask is because I suspect the defendant of bankruptcy fraud and tax evasion. If we are at mediation and let them know of my intentions of turning them in for bankruptcy fraud and tax evasion, would that be considered a threat?

No. It very well could be a CRIME.
If they have committed fraud, report it. Don't try to play games.

 

[Ronin]

JETX made a good point suggesting you have no reason to go to mediation, since you already have a final judgment that is enforceable. So... don't mediate.

If the other side has grounds to vacate the judgment, then they should already have done so. The fact that they have not filed a motion to vacate and are now attempting to mediate indicates they most likely have a weak to non-existing basis for such a motion.

I would be inclined to call their bluff and let them vacate judgment if they can. If they do not move do so right away, then you should start moving to enforce the judgment.

In the unlikely event they are able to vacate, it is entirely possible it will be without prejudice, and you will be able to refile your lawsuit after curing whatever defect caused the judgment to be vacated. At that point they may consider mediation to avoid the hassle and expense of litigating this case.

 

[Rexlan]

Sounds fishy and more to it than that.

No attorney would try to enter into mediation over a final judgment. As JETX said .. there is nothing to mediate.

More to it that what meets the eye here.

 

[steven200738]

Yes, Much More To It

Yes, there is definately more to it. It is actually very complex and probably too long to get into it here. I can try, but it's complicated. Please keep in mind the company has been very uncooperative, does not want to produce documents, contradicts themselves dozens of times, and their story keeps changing. The default judgment I have is against a company owned by one individual. After I filed my lawsuit, all the assets were transferred to the secrataries name. The secratary is the long time domestic partner of the owner's brother, who also worked for the company as the financial officer. The owner claims the company is out of business, but the website and phone are still active. We know the owner has been producing work through another company, who he is very friendly with. To further complicate things, the owner filed for bankruptcy personally just before I got my default judgment. Even though he claims no personal responsibility to owing me the money, he added my lawsuit to his personal bankruptcy, trying to discharge the debt. We objected to the discharge and are slated to appear in court to fight that battle. After that, our next step will be to add him personally to the judgment, so we can seize assets and garnish wages. Over the course of our investigation, we have obtained enough documentation to prove fraud on the court, commingling, embezzlement, bankruptcy fraud, and tax evasion. I believe this is why the owner's personal bankruptcy attorney asked us if we'd be interested in mediation to come to a settlement. All along they have not wanted to produce documents. Anytime they have provided information, they have contradicted themselves, been caught in outright lies, or plain and simple just changed their story. I hope this sheds a bit more light on the matter. Not so simple a task, but I believe we're close to a settlement.

 

[Rexlan]

You should get an attorney if there is any money involved.

The transfer to the other party is fraudulent and you can motion the court to have it stopped with the assets being put back in place. Once the plaintiff had knowledge of the litigation the assets for practical purposes are frozen in their ownership (simplified). It is rather easy to motion the court to examine the assets but the longer you dilly dally the harder it will be to actually get them. They may be disposed of in the interim and then you are SOL.