|
|
|
Motherboards.net sues Motherboards.com; runs 'em out of business
Posted by Pile
(4128 views)      [E-Mail link]
|
 |
| The other day I ordered some equipment from a online store listed in Computer Shopper. Motherboards.com. After finding my order was on hold, I visited the web site initially to see it had changed, then it says "Going out of business sale". I called the company on the phone and they seemed indifferent to whether or not we reached a resolution and were just as happy to cancel my order. Then a few days later, I received an interesting e-mail which explained the company's predicament. |
E-mail from motherboards.comAfter more than 8 years of providing high quality computer parts to Internet users, Motherboards.com is closing its doors.
A company in California recently sued Motherboards.com, Inc. over the ownership of a different domain name. We own the .com version and they own the .net version. While our attorney assured us that there was nothing to worry about, given that Motherboards.com, Inc. was being sued and we're not incorporated, the case proceeded and they were awarded a default judgment against Motherboards.com, Inc.
The company in California brought this judgment to Texas and served a writ of execution to our bank, State Bank. Even though the writ of execution was against Motherboards.com, Inc., the bank froze our account. Since we have a substantial amount of money in the account, and since we pay our bills with these funds, our bank began returning checks. Among others, checks to our vendors, payroll service, employee health insurance carrier, utility providers and shipping company all bounced.
Shutting off our cash flow caused a snowball effect and closing became the best option.
We are closing out our business and liquidating our inventory. Everything we have is now 20% off. This is limited to stock on hand. This closeout sale will continue for a few weeks, and then the remaining inventory will be donated to the Salvation Army, a non-profit organization helping those in our community who are in need. They operate a resale shop so those local to this area can still buy computer parts.
It has been a pleasure to serve our customers and we are sad that we must now close. There is a possibility that after we get past these legal issues Motherboards.com will return. Thank you to all our loyal customers.
Sincerely,
The Motherboards.com Team
|
I'm not quite sure what's going on. On one hand, it seems like a substantive injustice that this company was run out of business. Did they ignore the original lawsuit? Did they have a crappy lawyer? Or did they get railroaded by another company? It would be interesting to find out what happened to this well-known online retailer. |
|
|
I'm not a lawyer, but...
Posted by wizeGurl on 2005-01-20 12:24:20 | ...it sounds to me as if the original lawsuit was poorly worded, calling the business Motherboard.com Inc. when they aren't incorporated. Motherboard's lawyers clearly thought that this would invalidate the lawsuit, but apparently Texas bankers aren't lawyers, either, and shut down the accounts.
I wonder if there really is another Motherboards.com Inc. out there that they really intended to sue...but probably not, since they took steps against this one when they won the lawsuit.
What I wonder is, did they fight the lawsuit well, or did they rely on the technicality to save them and fail to offer other defense? If so, they're paying the price now. |
|
Bumper Sticker Store