News & Insights

Blankingship & Keith Corporate Law Partner Bob Scully Wins $1.343M Jury Verdict for Client


April 16, 2024

Blankingship & Keith is pleased to announce that partner Bob Scully and associate Wendy Cousler have secured a significant victory in a recent jury trial against Mike's Flooring Companies, Inc. (MFC). The trial exposed fraudulent transfers and breaches of corporate laws by MFC's directors and shareholders during the company's dissolution.

Blankingship & Keith represented a client who had negotiated a deal to sell MFC's assets during its financial troubles. However, amidst the company's dissolution, family members who served as directors distributed assets among themselves, leading to allegations of fraudulent transfers.

In the ensuing trial, a jury found the directors and shareholders culpable for violating laws governing distributions from an insolvent corporation. The court ruled the transfers fraudulent and ordered the return of assets alongside a money judgment for $1.343 million and a sanction of $346,789 against one of the fraudulent transferees.

The case sheds light on corporate governance of insolvent Virginia stock corporations winding up affairs after dissolution.

For media inquiries or further information, please contact:

Craig Schultz
Marketing Manager
Blankingship & Keith, P.C.

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