BK COURT RULES IN FAVOR OF ATTY YANG CLIENT FOR $250K AFTER TRIAL; 87-YEAR-OLD SENIOR SEEKS CHAPTER 7 RELIEF

I represented a foreign company with a $250K claim for a forty-foot container of manufactured goods that it delivered to the debtor a California company on 12/30/2014. The debtor had been in a Chapter 11 for a year before the trustee was able to convert the case to Chapter 7 on 4/4/15. Client continued doing business with debtor while it was on Chapter 11, shipping it millions of dollars worth of merchandise, and up to a week before debtor converted to Chapter 7. When debtor converted to Chapter 7, it owed client $250K of unpaid merchandise, and a trademark that client had paid debtor $120K for. The court had previously ruled in favor of client for the $120K trademark saying that it belongs to client since they paid $120K for it. The trustee argued that the transfer to client of the trademark occurred after case was converted to Chapter 7 even though client had paid $120K for it two years prior. Hence, the transfer was void. That issue went to the court on a motion, and the court ruled that the trademark belonged to client since they paid for it. It did not matter that the transfer was made after conversion to Chapter 7, implying that debtor no longer had any legal or equitable interest on the trademark as of payment date. The court however, left the issue of client’s claim for $250K hanging. A hearing was heard on this second matter after discovery was completed, and still the court could not decide one way or the other. The objecting creditor argued that the forty foot container did not exist and that the shipment was never made to debtor, or even if the shipment was made, debtor had paid the $250K in full. Needless to say, I found the argument rather strange.

Client presented invoices signed by the owner of the company, truck receipt for the forty-foot container, and accounting summary showing a net unpaid amount of $250K. So, the court set just this issue, whether or not the $250K is owed to client for trial on September 12, 2016. Three weeks before the trial date, my client informs me that the foreign government which owns the company has decided that client, the president of the company, will not be allowed to appear and testify before a U.S. court for political reasons. I file a motion to allow client’s testimony by telephone. Creditor objects that they will not be able to observe the demeanor of the witness if he is allowed to testify by phone. This becomes moot because the government also prohibits the witness to testify by phone. So, all the evidence we submitted for trial, including the declaration of the witness will the thrown out the door on the day of trial because the witness is not around to testify and be cross examined. In other words, we have no evidence, documentary or testimony, supporting our position at trial, while the other party has all their evidence coming in since their witness will appear to testify.

On September 12, trial promptly starts at 9.30 a.m. I’m sitting there on my side all by myself (and God the Holy Spirit who is invisible but there nevertheless, giving me aid and comfort). The other side had two lawyers and their expert witness on international trade documents. First order of business, the judge says is that the declaration of our witness is stricken off the record since our witness is not around to be cross examined, meaning, we have no evidence! Creditor calls their expert witness to testify. I object that he is not a percipient witness. Judge agrees with me. They insist that their expert witness will testify on the redaction of information on the bill of lading and customs entry. I see the loophole and I withdraw my objection to the testimony of their expert witness. My plan is to bring our evidence in by cross-examining the witness as an adverse witness.

Second client is 87 years old. We filed his first Chapter 7 case twenty years ago when he was 67 and his wife was still alive. They owed about $50K of credit cards twenty years ago. Those were all discharged. They built up their credit again and now owe about $20K. Wife passed last year. They were able to travel the world in the last twenty years. So, the last twenty years was good. But since wife has passed away, he doesn’t feel like paying the $20K anymore. He’s just tired of paying for it. They used the cards to travel the world, but that was their last time around. Last week, one credit card sued him for $10K. With is social security at $1K a month. There really is no money to pay the cards. So, the only logical step is the get rid of his cards with a Chapter 7 discharge. Client is still able to drive around by himself at 87. He has chronic back pain and has four stents in his heart arteries, but he still praises the Lord for his relatively good health! I would like the Lord to bless my wife and I with good health and long life… this life is good and the Lord is good. See the prayer of Moses, Psalm 91: Whoever goes to the Lord for safety, whoever remains under the protection of the Almighty, can say to him, “You are my defender and protector. You are my God; in you I trust.” He will keep you safe from all hidden dangers and from all deadly diseases. He will cover you with his wings; you will be safe in his care…”

“THE LORD. HE IS THE ONCE WHO GOES BEFORE YOU. HE WILL BE WITH YOU, HE WILLNOT LEAVE YOU NOR FORSAKE YOU; DO NOT FEAR NOR BE DISMAYED.” DEUTERONOMY 31:8

Lawrence B. Yang is a graduate of Georgetown University with a Master’s Degree in Law and specializes in Bankruptcy, Business, Real Estate and Civil Litigation.  He speaks English, Mandarin and Fujian and has successfully represented thousands of clients in California, including companies overseas.  Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 1000 S. Fremont Ave., MAILSTOP 58 BUILDING A-1 SUITE 1125, Alhambra, CA OR at 20274 Carrey Road, Walnut, CA 91789.