Carhart v. Carhart-Halaska International, LLC

Dist. Ct. erred in permitting plaintiff to purchase for $10,000 remaining asset of defendant-corporation that had been half-owned by plaintiff and third-party in order to satisfy $242,000 default judgment (in action originally brought against corporation by another entity, but said rights to lawsuit had been purchased by plaintiff for $150,000), where Dist. Ct. should have allowed to proceed state-court action filed against plaintiff by other owner of defendant on behalf of corporation, where said case alleged that plaintiff had plundered defendant’s corporate assets for his own purposes. Instant $10,000 purchase of all of defendant’s assets (including corporation's lawsuit against plaintiff) was not one made in good faith, where: (1) purchase price was seemingly too low where record showed that third-party’s/defendant’s action against plaintiff was worth at least $150,000 that plaintiff had paid to obtain rights to lawsuit against defendant; and (2) said purchase by plaintiff improperly placed plaintiff’s claim to defendant’s corporate assets ahead of other creditors under circumstances where plaintiff was alleged in state court action to have financially destroyed defendant.