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The subcontractors say Peoples Bank propped up Erpenbeck Co. through a series of unethical moves, including allowing Erpenbeck to deposit more than $33 million in checks .
That should have gone directly to Erpenbeck’s construction lenders. The bank has acknowledged the checks were misdirected into Erpenbeck accounts.
Attorney Jerry Miniard and his clients say the board knew or should have known about the impropriety. Had the bank not participated in the scheme, the homebuilder.
might have gone out of business before hiring subcontractors and not paying them in the months and years before the business crashed, he argues.
Miniard told Bertelsman that Erpenbeck subcontractors could be owed as much as $10 million in unpaid bills. He hopes to obtain class-action status for the lawsuit in order to represent all .
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Bertelsman’s ruling came despite the fact that each board member signed written consents and waivers saying they had been fully advised of the conflict and still wanted Arnzen’s firm to represent them, Arnzen and attorney Beverly Storm said.
Storm and Janet Jakubowicz, a Greenbaum lawyer, argued unsuccessfully that the highly educated board members were able to make an informed decision about which attorneys they wanted to represent them. Jakubowicz said Storm was the lead attorney for the Arnzen firm and that her work had been vital to the defense. “With informed consent (of board members), we want to have the Arnzen firm involved,” she said.
Bertelsman cited past rulings in which assent of the defendants was not enough justification in the case of conflict of this degree. After the ruling Arnzen said, “When the Erpenbeck litigation began, our firm was asked by the board to represent their interest. Despite our very busy practice, we agreed to do so because of my longstanding relationship with all of the directors. We have successfully concluded most of the litigation.” On the off chance that you need to know your home estimation you will can settle on key choice about your property utilizing property valuation present and starting there on the off chance that you need to make your home more worth then you ought to direct change side essentials to make you house for all longings and reason astonishing.