Greetings HHSE Friends & Shareholders - Back on August 5, HHSE posted a blog to identify that a "foreign judgment" that had been filed in Washington, County Arkansas (from CAV Distribution Corporation) was false and was being opposed by the company. On that day, Arkansas counsel contacted the court to inform them that an opposition or objection was to be made, on the basis that the original judgment had been fully satisfied in California. Counsel then advised to file a Satisfaction of Judgment in the California case, which would then render any subsequent assignments moot.
Back History: in 2009, during that brief moment when HHSE thought that it was to be purchased by Empire Film Group, Inc., one of the licensors to Empire was Elite Entertainment, Inc. When Empire failed to pay for the acquisition of the Elite Library (as well as failing to pay for the acquisition of Hannover House), Elite filed a lawsuit and named a wide range of entities (including Hannover House). Contrary to written communications, Empire did NOT defend the case, and as such, all named parties suffered from a default judgment. The judgment, including interest and fees came to around $250,000.
Over the next four years, Hannover House made periodic payments against this judgment, and ultimately paid off the full note to Elite Entertainment, Inc. However, at some point during this process, the primary creditor for Elite (C.A.V. Distributing) put a lien against Elite, including Elite's judgment against all of the Empire-Hannover default parties. C.A.V. did not check with Hannover House to verify if there was any remaining balance due to Elite. Instead, they filed a judgment for whatever amount ELITE owed to C.A.V., and attempted to file this against Hannover House and other named parties. It wasn't even the proper amount originally, and it did not take into account that the judgment had been satisfied.
In any event, due to C.A.V.'s actions, the legal procedural course to follow was to:
a). File a "Satisfaction of Judgment" document in California;
b). Use the CA filing to enable the Washington County, AR court to dismiss the foreign judgment filing attempt.
The fully executed Satisfaction of Judgment form is below.
Hannover House still has debts - but ELITE ENT. (and any parties that Elite might owe!) is not one of them!