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Petaluma Theater District v. Teaspots

Practice Area: Business

Outcome: Stipulation for Judgment

Description: Teaspots was a tea shop business that folded during the recession. They were being sued for over $100,000 for breach of lease. While the company had virtually no assets, there was a decided risk that the landlord would attempt to pierce the corporate veil and go after the shareholders/proprietors home. The solution was to work informally with the landlord's attorney to present all the financial information that would convice them of this fact. We eventually opted for a stipulation for judgment as the most cost-effective way to handle the situation, both sides knowing that the judgment was unenforceable.

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