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March 12, 2018

Americas: Don’t Count Your Chickens: USPoultry vs. Room Block Poacher

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Yesterday we reported that the U.S. Poultry and Egg Association had prevailed in a suit against Tarzango, LLC for misrepresenting itself in order to steal attendee housing bookings from the International Production & Processing Expo. Before you get too excited, after examining the docket, John Foster, Esq., CHME, of Foster, Jensen & Gulley, determined that the case result was from a default judgment, not a judgment on its merits, and the likelihood of the defendants ever paying the $750,000 in damages awarded to USPoultry was slim. John Starkey, president of USPoultry, agrees. He says, “It’s a long way between winning the judgment and getting the money!” 

The problem, says Foster, is, “Until [associations] are able to pierce the corporate veil so that defendants have to pay money out of their own pocket, [the poachers] are going to keep doing this. They can declare bankruptcy and go out of business tomorrow and then open up a new business doing the same thing next week. Tarzango can potentially just declare bankruptcy and then the owner(s) can incorporate under a new name, it happens every day.”

Read more at MeetingsNet

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