Menu
CASE STUDY.
Lawyers involved in the project:
The law firm, on behalf of a factoring company, pursued payment of claims to a debtor operating a bottling plant for cooking oils. Enforcement against the company turned out to be ineffective, the only valuable asset was the real estate developed by the plant, encumbered by cooperative banks' mortgages. However, the property had been sold beforehand to prevent effective enforcement against its assets.
The law firm obtained the real estate sale agreement from the Land and Mortgage Register Court. Legal analysis of the agreement led to the conclusion that, despite the title of the agreement as a real estate sale agreement, in practice there was a sale of an organized part of an enterprise ("OCP") - an independent oil production and bottling plant - to a company substituted by a member of the owners' family. The above entails legal consequences in the form of liability of the purchaser of the enterprise (as well as the OCP) for the liabilities of the acquired enterprise.
The law firm sued the company acquiring the property under liability for the liabilities of the acquired company (Art. 55'4 of the Civil Code). The court issued a payment order allowing the claim, and the law firm directed enforcement first to the assets of the acquired company, and further sued the chairman of the board of directors of that company for its liabilities under Article 299 of the CCC. Enforcement from the board member's personal assets proved successful and led to the repayment of the entire debt.
