Paul Duffy Does, In Fact, File A Bond To Cover Fees In Prenda Case

from the surprise,-surprise dept

Well, it took a while before it showed up in the court’s electronic system, but it appears that Paul Duffy did, in fact, get a bond, for $101,650, to cover the amount that Prenda has been told to pay. As you may recall, the various lawyers associated with Team Prenda tried to file for a stay (first, erroneously by going straight to the appeals court), which Judge Wright rejected, adding $1,000 per day / per person additional fines to the total amount. While Brett Gibbs pleaded poverty, it appears that Duffy was able to get the bond. For the time being, this means that the amount owed won’t keep increasing day by day. Duffy appears to have secured the bond back on the 16th of May, but only filed it with the court on the 23rd, three days after the amount was technically due. Of course, in his filing, he still takes cracks at opposing lawyer Morgan Pietz, suggesting that he and Pietz could not agree on the proper amount for the bond. Update: As some have noted, Duffy’s bond covers everyone… except for Brett Gibbs. They really threw him under the bus something fierce.

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Companies: af holdings, ingenuity 13, prenda, prenda law

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Comments on “Paul Duffy Does, In Fact, File A Bond To Cover Fees In Prenda Case”

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Risky Business says:

SureTec beats Lloyd's in crazy risk-taking

Wow, Duffy only paid $1,017 for the bond – 1% of the face value. That insurance company is taking an extraordinary risk here for very little money.

Gibbs isn’t listed as part of the group on whose behalf the bond was issued either. Sound effect here: “The wheels on the bus go round and round…”

That Anonymous Coward (profile) says:

Yes they could not agree on the amount because before the first appeal no one mentioned to him they were appealing.
Then he made it clear he had no problem with the appeal so long as the money was secured so no one could say but we are all broke.

And in true Prenda fashion… better to file late, because thats how you govern yourself accordingly in the big leagues.

Trails (profile) says:

Re: Re:

Try when he joined Prenda and figured out what they were actually up to.

My sympathy for Brett Gibbs is absolutely zero. He partook of an odious scheme that imo extorted people. He furthered said scheme and wants sympathy because he got sick? I wouldn’t wish cancer on anyone and do not rejoice in his affliction, but none of that obviates his responsibility for his actions.

That Anonymous Coward (profile) says:

Re: Re: Re:

He was sick before then I believe.
The ever popular battle cry, that was made crystal clear in the FL case where 2 local counsels tries to flee the sinking ship, is we have bills and they pay us to just file paperwork.

Gibbs has used his illness on several occasions to alter people’s responses to him… this is what causes people to want to beat him.

Mike Masnick (profile) says:

Re: Re: Re: Re:

Let’s also ask how exactly he managed to scrounge the funds for a big fat expensive Caribbean wedding but is too poor to pay for his Prenda shenanigans.

I believe his parents live in the caribbean. It’s entirely possible that the cost of the wedding was relatively low, and perhaps was covered as a gift from his or her family. That’s not unheard of.

I think people are making too big a deal of his wedding.

If this is poverty... says:

Expensive Caribbean Wedding

“After working as an attorney for 2 years, Brett was diagnosed with Brain Cancer on July 10, 2009. While a devasting set back, he fought through it with Shannon at his side, and, well… now they are getting married in Grenada in April of 2013. As for his health, Brett’s condition is stable (i.e. good), and is looking forward to hanging with all of his friends down in Grenada.”
Gibbs has locked down his wedding website with password protection on every page, but the above is an accurate quote taken prior to the lockdown.

When I think of poverty, people with websites devoted to their expensive Caribbean wedding of last month, complete with cute little jet aircraft icons, don’t exactly come to mind.

“In the case of multiple judgment debtors, each one must file a bond or deposit unless exempted by statute. If any relief or award in the judgment is joint and several, the filing of a bond by only one of the judgment debtors will not inure to the benefit of the other judgment debtors.”

That’s Texas law, but the same rule probably applies here. Gibbs is independently liable for the entire amount of the judgement. If he’s not appealing the judgement himself, then he might well be immediately liable for the entire amount of the judgement.
Another interesting angle: Duffy filed the bond several days late, creating a window of opportunity. Prenda, etc. could have been subjected to “post-judgement discovery” which basically consists of a Roto-Rooter examination of the judgement debtor’s financial structure. The details of Prenda and its related shell companies, as well as the finances of Duffy, Steele, etc., would thereby be fully exposed.

Zem (profile) says:

Call my crazy

I am not up with the use of insurance bonds for things like this and the companies that provide them.

But I have seen them used in the building industry. More often than not the insurance bond ends up being worthless as it becomes impossible to call them in due to the “fine print”.

And like, has anyone checked, is this insurance company another Prenda shell?

Sneaky Filing? says:

Gibbs may have money

In the Gibbs reponse (linked to in the above article), Gibbs says that his bank account has less than $500 and that he does not have the $100,000 in assets needed to post enough collateral to get a supersedeas bond.

Gibbs did NOT say that he doesn’t have OTHER assets totalling less than $100,000. He could still have $99,000 in stocks and bonds or other assets that he just doesn’t feel like using to partially pay the judgement.

Anon E. Mous (profile) says:

I will admit I am more than amazed that they did this, but I am also guessing since the hail mary efforts to get a stay failed and the fact that Judge Wright started to ding them a thousand bucks each I guess they figured the bond would be cheaper.

While they have posted the bond, I am sure they will do everything in their power to appeal and get that cash back (wow that latest round of shakedown -er- I mean settlement letters must have paid off)whether they are successful is a whole other issue.

So now that the bond is up, I cant wait to see what the Prenda gang will say when it is time to argue in front of the 9th Circuit Court.

You can pretty much bet that the Judges will be querying the Prenda gang’s lawyers that will be handling the appeal.

It will be interesting to see what the take of the Justices on the 9TH circuit court will think when they start to delve into Prenda their so called clients and the Shells and LLC’s and offshore trust they are connected with this.

Then the Justices will also hear about the antics of the Prenda gang in Florida, Minnesota, Arizona and of course their home state of California.

It will even be more interesting when they look at the gathered evidence of Pietz and Ranallo, and hopefully that great flow chart with that picture of AF Holdings rep Salt Marsh.

Of course that brilliant strategy that the signature on these documents doesn’t matter schtick that Prenda has been lamenting in various cases around the country should be entertaining in the appeals court.

I wont even bother to bring up the Alan Cooper hearing in Minnesota and the Judges comments to Hansmeier of what she thought of Prenda and their litigation strategy.

Don’t dump that popcorn stock yet kids, the Prenda gang is going to give us a few more laughs

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