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Secured Transactions Keyed to Lopucki
Myzer v. Emark Corporation
Citation:
45 Cal. App. 4th 884 (Cal. App. 1996)Facts
In 1992, Emark Corporation was in financial difficulty. The corporation granted security interests to secure debts allegedly owing to the corporation’s counsel (Rieck & Crotty) in the amount of $170,000 and to the corporation’s director (Keig) and chief financial officer (Rummel) in the amounts of $772,993 and $129,210 respectively. In late 1993, the paychecks of all Emark employees were held and the employees were told they would be paid as part of the closing costs of the sale to Sorrento. After the final sale, Emark’s creditors told the employees they would be offered a percentage of their wages and benefits. Apparently, no employees were paid after August 30, 1993. Myzer filed the complaint to recover wages and benefits and for damages, an accounting.
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