Monday, March 26, 2007

McGhan Says He's Not Responsible

In a separate case than what was discussed here the other day, the Pacific Coast Business Times writes that three Las Vegas attorneys motioned to dismiss claims against Don McGhan --- "asserting that the failure to deliver funds was strictly a breach of contract by Southwest and that he has no personal responsibility or legal liability for the loss of funds".

Will a similar filing be made in the Hollister and Brace complaint against McGhan? We don't know yet -- but this is what Robert Brace had to say in the PacBizTimes:

“The money was held in trust, it was supposed to be safe. A trust relationship imposes on the trustee the highest duties known in the law. McGhan and anyone who knowingly helped him move the money out of trust are liable and we will pursue them,”


Good for H & B.
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1 comment:

  1. Anonymous3/27/2007 11:29 AM

    The legal maneuverings make interesting reading and will no doubt keep the lawyers well fed.

    The motion to dismiss can be read here

    http://www.sonorancity.com/sonoran_city_news/files/mcghan_1.PDF

    and here

    http://www.sonorancity.com/sonoran_city_news/files/mcghan_2.PDF


    I especially like this defense claimed by McGahn's legal beagles-

    "Nothing in the Exchange Agreement suggests that SOUTHWEST is restricted from using the funds it receives upon sale of the Relinquished Property in any way that it sees fit."

    Can you imagine signing off on that, in LAS VEGAS? Let's see, blackjack, craps, hookers....

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