You have been engaged to assist in a bankruptcy proceeding. Your client. Barae P

Question

You have been engaged to assist in a bankruptcy proceeding. Your client. Barae Pharmaceuticals won a $ 2million judgment against Barae pharmaceuticals for misuse of Barae’s name in the generic-label over-the-counter market.

Bara ceased operations and filed for Chapter 7 bankruptcy after the judgment was entered. Your initial investigation tells you that virtually all of Bara’s 125 employees have quit. The attorney for bara says that the only employee left is a low-level lab technician. The CEO and CFO have left the country and returned to South America. So, you have been left very little to go on.

The bankruptcy filing shows virtually no assets at all. The bank accounts and pension funds are empty. Only some lab equipment is left, which is probably of little value. Bara’s lone remaining employee shows up for the initial meeting of the creditors. The room is full of creditors with many questions, but the lone remaining employee says that she doesn’t know anything. She merely worked in the lab, and she had only been with bara for two months prior to the bankruptcy filing. She remained because Bara’s attorney had promised that she would be compensated from the bankruptcy proceedings.

How would you investigate this bankruptcy case to help Barae recover on the judgment it was awarded?

What is intentional tort relate to this case and what is intangibles related to this case?

Explanation / Answer

I would try to find out the tangible and intangible assets which Bara has. Since pension fund and bank accounts are empty there is not much scope to recover on that aspect.

I would look at the property which Bara has. They have offices located at various places. I would auction the office place between various builders to recover money. The intangible assets can be intellectual property rights which Bara may have over any particular medicine or formula.

Intentional tort relates to this case because the company knew it was illegal to use another company's name.1but still it jeopardised the future of the employees and creditors. It is an example of intentional infliction of emotional distress.

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