Paul Teutul Jr. Wins Appeal vs Paul Teutul Sr.
Monday, December 20, 2010
Once upon a time, the Teutul's ran a burgeoning family business. Happy days are no more, replaced by an ugly court case pitting father against son.
The OCC drama continues. A decision in the Appellate Division of the Supreme Court of New York (Teutul v. Teutul, 2010 NY Slip Op 09248 Dec. 14,2010
) reversed a previous ruling by a lower court forcing Paul Teutul, Jr. to sell his 20% interest in Orange County Choppers to his father, Paul Teutul, Sr. The case has gotten ugly as the two have fought over Paul Jr.’s 20% share in the company. Paul Sr. wants to acquire those shares at “fair market value.” The amount those shares are worth has been a point of contention. Senior tried to tell him those shares were valued at nothing. Junior said that was a bunch of bull. The two have gone back and forth on a method to determine the fair market value of that 20%.
In April of 2010, the Supreme Court of Orange County
(NY) ruled in favor of Senior, declaring the option agreement to buy him out was a “valid and enforceable option under New York Law” and that Senior properly exercised that option. It also determined that because of the “fair market value” wording of the buyout agreement meant it “is a manifestation of their intention to have fair market value determined in a matter that falls outside of what their subjective beliefs might be and to be bound thereby” citing another case as an example. Gotta love legal speak, but in essence it gave Senior the go-ahead to usurp Paulie’s shares.
Paul Jr., on the other hand, says wait a minute here. I want access to “a weekly accounting of all expenditures and receipts” of Orange County Choppers Holding, Inc. He also asked that all mail, e-mail and telephone messages still being sent to him at OCC be forwarded to him.
OCC is still operating out of a 92,000 sq. ft. headquarters, they still have a television contract and are landing paying clients. The business has got to be worth something. Whether this case will be resolved before OCC ends up going belly up, who knows? The bigger issue is whether a father taking his son to court will drive an irreparable wedge between the two. Apparently the adage “blood is thicker than water” doesn’t mean much in the Teutul household.
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