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Old 05-12-2008, 05:29 PM
yukong yukong is offline
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Default Re: More News on Sonics Lawsuit

Quote:
Originally Posted by okiebadger View Post
That's exactly why he filed suit in this manner: he does want to keep the money. Under this scenario, the Trust is established for the purpose of selling the team, the proceeds of which go to PBC. Schultz keeps the original proceeds, PBC gets the proceeds of the forced sale and the new hypothetical owner keeps the team. I don't think it will happen but that is what Schultz wants. Dumb isn't it?

Under contract law, whenever you file suit to rescind a contract, (regardless of the grounds, including allegations of fraud), then if the court orders rescission, the parties are put back into the position they were prior to the execution of the contract. In this case, Schultz gets the team back and PCB gets their $350 million back. Then you throw in monies they might both be out that returns them to their pre-contract state. I have never seen or heard of a rescission wherein the person asking for rescission of the contract gets to keep the proceeds of the sale, and then in some fashion gets the product back. I know they are saying some sort of trust to be held for sale...but that is just outlandish. I can not ever see a court finding that sort of resolution as equitable. And this is a suit in equity.
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