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Bankruptcy Keyed to Epstein 6th Ed.
In re Marciano
Citation:
708 F.3d 1123 (2013)Facts
In 2007, Georges Marciano sued five of his former employees in California Superior Court, alleging theft. Three employees—Joseph Fahs, Steven Chapnick, and Elizabeth Tagle—cross-complained, alleging defamation and intentional infliction of emotional distress. As a discovery sanction, the state court struck Marciano’s answers to the cross-claims. After a jury trial on damages, the court entered judgments in favor of the three employees for $55 million, $35 million, and $15.3 million, respectively. Marciano appealed but did not post a bond to stay enforcement of the judgments pending appeal. While the appeals were pending, the three employees filed an involuntary bankruptcy petition against Marciano. In total, Marciano faced approximately $190 million in judgments from various creditors who had begun collection efforts.
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