Replies to post #26903 on Cal-Bay International Inc (CBYI)

[MerryPrankster]

Thanks TPL and Legallegal <eom>

[Qone0]

"If a default judgment is entered, Rizvi need merely go to court and have such default judgement removed on the basis that there has been a recent change of control of CBAY from Pawson to Rizvi. Probably at that point the suit against CBAY gets thrown out and proceeds only against Pawson, wherever he may be, personally, i.e., the default judgment against Pawson stands and CBAY is dismissed from the suit."

ROTFLMAO, huh? CBAY is a legal entity, don't matter who controls it. The default judgement was against both. The sharks named both so they could go collect wherever the money is. And as CBAY is a public company they always can get money by dumping shares. Pawson can just run away and hide behind his corporate shield.

[gitonwithit]

Well, I'd have to say that corporations are formed in such a way to protect individuals and officers and that scenario is not one that I would forsee.

Does anyone know if the suit has any merit, what amount is at risk, or the reason behind it?

[Alyssa]

That was to enforce a corporate guaranty to which Pawson committed CBAY to the tune of $800 K +. It was strongly insinuated by the Edgewater attorney I spoke with that the property is or was to be Pawson's personal residence, and that the property was never one of CBAY's assets. Pawson had called the attorneys for Edgewater and told them that Leo Moriarity, Jr., would be filing an appearance to represent both Pawson and CBAY, and SURPRISE! It just didn't happen; hence, the default.

I, too, hope that Rizvi has been working hard to ease CBAY out of its various legal troubles, but the change of control from Pawson to Rizvi wouldn't negate CBAY's obligations under the corporate guaranty to Edgewater, would it?