MTH Attempts To Collect $$$ From Korea Brass by Erol Gurcan

In my last legal article, (written at the request of the Coil Couplers web site), I stated that in MTH’s fraudulent transfer of assets lawsuit against Korea Brass aka Hagye Trading/Model Korea Trading (MKT), the court on November 20, 2007 issued a temporary restraining order (TRO) and entered an order directing all monies paid by Lionel to Korea Brass were to be deposited into a court approved interest bearing escrow account. The practical effect of this was, Lionel, which is not a party in MTH’s lawsuit against Korea Brass, will not be able to take delivery of trains that it paid for and which were manufactured by KB, since the money is going into a court escrow account rather than directly to KB. Ultimately, we hobbyists will not be able to purchase the trains which are affected in these legal proceedings, at least for now.

Click on the link below to read on

Legal Explanation of Latest Coil Couplers Posts

Over the last two days, there have been a few posts on the Coil Couplers of America website stating that MTH has cut off Lionel’s supply of locomotives, including some of the new Legacy models, from its supplier Model Korea Trading Company (aka MKT, the company named in the Coil Couplers post of the last two days) due to the court ordered stoppage of payments by Lionel.

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MTH Files Lawsuit Against Korea Brass, Inc UPDATE

Charlienassau of Nassau Hobbies and his lawyer/friend Erol come through yet again with some interesting details about the legal proceedings in the O Gauge industry.  This time, on the OGR forum, Charlie posts Erol's explanation and findings about why MTH filed a new lawsuit against Korea Brass. 

View Charlienassau's post on OGR

MTH Files Lawsuit Against Korea Brass, Inc

From the Detroit Free Press:

A Maryland model train maker that won a $40.7-million judgment in 2004 against Macomb County-based Lionel LLC and a Korean supplier has returned to U.S. District Court in Detroit to collect damages from the Korean firm.

Mike's Train House Inc. of Columbia, Md., charges in a lawsuit filed last week that Korea Brass Inc. of Charlottesville, Va., transferred all of its assets to a new company, Hagye Trading Co., to avoid paying the judgment.

In 2004, a federal jury in Detroit awarded $27.7 million to Mike's Train House, which alleged that Lionel of Chesterfield Township and Korea Brass had stolen its design for making zinc die cast O gauge steam engines.

The judgment forced Lionel to file for bankruptcy protection while it appealed the judgment.

Hagye Trading Co. isn't listed in the Charlottesville phone directory and could not be reached for comment.