In 2005, Keystone Laminates, Inc., obtained a default judgment against KlipTech Composites, Inc., owned by defendants Joel and Leeann Klippert, in the total amount of approximately $120,000. Keystone alleges that during supplemental proceedings, it learned that KlipTech had sufficient assets in 2004 to satisfy its debt to Keystone, but that KlipTech instead transferred those assets to Paneltech International, LLC, one of KlipTech’s former clients.
In 2007, Keystone filed suit in the Western District against Mr. and Mrs. Klippert and Paneltech for fraudulent transfer, corporate successor liability as to Paneltech, and to pierce KlipTech’s and Paneltech’s corporate veils as necessary to prevent abuse of the corporate form to frustrate Keystone’s ability to collect on its judgment. In September, it moved for an order transferring title of the trademarks from KlipTech to Keystone to satisfy its judgment.
In support of its motion, Keystone alleged that Joel Klippert wrote Paneltech’s owner a letter structuring the deal as follows: “Paneltech is buying the equipment assets from KlipTech. KlipTech will own the brand names, KlipTech, Ramp X, PaperStone & AquaComp and at the point that KlipTech Composites, Inc. is closed/folded those brand names will be the property of Joel Klippert.” Keystone alleged that KlipTech as a business never closed, so the transfer of the trademarks to Mr. Klippert never took place.
Mr. Klippert disputed those facts, however, and Judge Franklin Burgess found Keystone’s theory lacked clear evidentiary support. The court concluded “where ownership of the aforementioned brand names is not clearly shown, and where the status of the Judgment Debtor is also unclear, Keystone’s motion most be denied.”
The case cite is Keystone Laminates, Inc. v. Klippert, No. 07-5164, 2007 WL 2915153 (W.D. Wash.).