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

Legal Issues

from the surprise,-surprise dept

Wed, May 29th 2013 6:23pm — Mike Masnick

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.

7e31ddae e6af 421b 9472 7379f12a8dca (PDF)7e31ddae e6af 421b 9472 7379f12a8dca (Text)

Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.

Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.

While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.

–The Techdirt Team

Filed Under: brett gibbs, john steele, morgan pietz, otis wright, paul duffy, paul hansmeier
Companies: af holdings, ingenuity 13, prenda, prenda law

23 Comments

If you liked this post, you may also be interested in...

Reader Comments

Subscribe: RSS

View by: Time | Thread

That One Guy (profile), 29 May 2013 @ 7:04pm

Huh, well I guess this explains the shakedown letters he's been sending recently, it was a fundraiser for this.
[ link to this | view in thread ]
Risky Business, 29 May 2013 @ 7:09pm

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..."
[ link to this | view in thread ]
That Anonymous Coward (profile), 29 May 2013 @ 7:11pm

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.
[ link to this | view in thread ]
Anonymous Coward, 29 May 2013 @ 7:18pm

Paul Duffy and horse with no name just hate it when due process is enforced.
[ link to this | view in thread ]
That Anonymous Coward (profile), 29 May 2013 @ 7:18pm

Re: SureTec beats Lloyd's in crazy risk-taking
But they have all of these copyrights in the filing cabinet, and they might not be worth money now... but soon...
[ link to this | view in thread ]
Mike Masnick (profile), 29 May 2013 @ 7:21pm

Re: SureTec beats Lloyd's in crazy risk-taking
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..."

Indeed... Just added that to the post...
[ link to this | view in thread ]
Anonymous Coward, 29 May 2013 @ 7:46pm

Re: Re: SureTec beats Lloyd's in crazy risk-taking
I don't think it matters. So long as enough was paid to the court to cover everyone, then it will cover everyone since they were all on the hook jointly and severally.
[ link to this | view in thread ]
Lucy, 29 May 2013 @ 8:16pm

If ever there was a time for Brett Gibbs to start talking or selling his story, now would be that time.
[ link to this | view in thread ]
Trails (profile), 29 May 2013 @ 8:31pm

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.
[ link to this | view in thread ]
That Anonymous Coward (profile), 29 May 2013 @ 8:44pm

Re: Re: Re: SureTec beats Lloyd's in crazy risk-taking
But does it allow them the ability to then get Gibbs to behave or face them trying to recover his portion?
[ link to this | view in thread ]
Lucy, 29 May 2013 @ 8:46pm

Oh ya he was in on it. I agree with you Trails, but since he hasn't stepped up yet, any time now might get him some bargaining leverage with investigators. Might not. He does have a right to stay quiet. (Maybe even motives outside the obvious.)
[ link to this | view in thread ]
That Anonymous Coward (profile), 29 May 2013 @ 8:47pm

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.
[ link to this | view in thread ]
Anonymous Coward, 29 May 2013 @ 8:59pm

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.
[ link to this | view in thread ]
If this is poverty..., 29 May 2013 @ 9:13pm

Expensive Caribbean Wedding
http://brettandshannonscaribbeanwedding.com/view/4812857520965213/31241146

"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.
-----
http://www.cowlesthompson.com/userfiles/articles/northrup.pdf

"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.
[ link to this | view in thread ]
Mike Masnick (profile), 29 May 2013 @ 9:14pm

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.
[ link to this | view in thread ]
Zem, 29 May 2013 @ 9:29pm

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?
[ link to this | view in thread ]
Trails (profile), 29 May 2013 @ 9:45pm

Re: Re: Re: Re:
Agreed. Don't care about his wedding. I'll also take him at face value that he's flat broke and extremely affected by his illness. He's still a jerk.
[ link to this | view in thread ]
Jim Tyre, 29 May 2013 @ 9:50pm

Re: Call my crazy
Zem,

Sure Tek is a legit company, rated highly by Moody's. Supersedeas bonds aren't like construction bonds. The chances of the funds not being available when the time comes are small. (Not impossible, of course, but small.)
[ link to this | view in thread ]
Sneaky Filing?, 29 May 2013 @ 9:53pm

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.
[ link to this | view in thread ]
That One Guy (profile), 30 May 2013 @ 1:58am

Re: Re: Re: Re: Re:
You're kidding right? At this point, after all the half-truths and outright lies they've put forth, if one of them said the sky was blue I would go outside and check before believing them, given how utterly and completely they've demolished their credibility.
[ link to this | view in thread ]
Anon E. Mous (profile), 30 May 2013 @ 4:38am

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
[ link to this | view in thread ]
Anonymous Coward, 30 May 2013 @ 4:41am

perhaps in the future, Gibbs will be less inclined to work with arse holes who want to commit naughty things under the disguise of being lawyers?
[ link to this | view in thread ]
Gibbs is toast, 30 May 2013 @ 11:59am

Not a lawyer for long!
Perhaps in the future, Gibbs will be disbarred, and the $50,000 he still owes for law school tuition will be an expensive lesson in how NOT to start a career!!!
[ link to this | view in thread ]