POSTED JANUARY 30, 2012 12:15 pm
ShanaTaylor….Armstrong on Dr. Phil
Over the past week, numerous articles have emerged in the national media that Bravo and cast members of “The Real Housewives of Beverly Hills” worry they will be dragged into the $1.5 million breach of contract lawsuit brought by MyMedicalRecords.com, Inc. against Russell and Taylor Armstrong. According to Bob Lorsch, CEO of MyMedicalRecords.com, Inc., MyMedicalRecords.com has had nothing to do with any such rumors. It simply intends to continue litigating its claims against the Armstrongs in the case.
However, tomorrow, MyMedicalRecords.com, Inc. plans on filing a Right to Attach Order against Taylor Armstrong in an effort to reserve her assets for collection of an eventual judgment. While media reports have claimed Russell Armstrong, who committed suicide last summer, left Taylor broke, MyMedicalRecords.com, Inc. believes the opposite is true and is therefore bringing the order. MyMedicalRecords.com filed suit against both Russell Armstrong and Taylor Armstrong on July 29, 2011 seeking damages of $1.5 million on claims the couple breached a previous Settlement Agreement. In 2007, two years before MyMedicalRecords.com, Inc. went public, it was discovered that the Armstrongs had misappropriated investor money and diverted shares of the Company’s stock. Russell Armstrong, the largest shareholder at the time, was immediately removed from the board of directors and settled by giving up 100% of his equity position and payment of hundreds of thousands of dollars.
Under the terms of the Settlement Agreement, signed by both Russell and his wife Taylor, the Armstrongs were required to identify everyone to whom they had sold shares of privately held MyMedicalRecords.com. However, the Armstrongs failed to do so, and MMR filed a $1.5 million breach of contract suit. MyMedicalRecords.com, Inc. is interested in Taylor’s assets, income, book royalties, sponsor gifts, personal appearance fees and other income.
(Thanks to SH readers “CP” and “SL”!!)
The timing of MMR’s action is interesting since her book will be released next week.
Oh wow, you’re right. MMR’s going to garnish her S&S paychecks.
that’s what I was asking about in the post just below this when I asked if it meant that any income she has coming in being affected by the ‘right to attach’ order. With the book coming out, I was thinking that they would be able to garnish that money and any money from her promotional tours or (let’s hope not) a season three or rhob
Iirc, Taylor has to give a portion of her book revenue to Bravo, since it seems that’s the way Bravo’s contracts are with the HWs.
I would think that it would be put in a account overseen by the court and attorneys. Then if they win their case it is there for the taking.
I meant to say Equity account.
Typically, with book deals she has already been paid any monies she will receive via an advance. Once the advance is recouped out of royalties, then she receives addl royalties. But I don’t see this book being a best seller, rather selling all it will sell in the first few days of release. MMR should attach her paychecks and all bank accounts and file criminal charges since felony fraud was committed.
Rather than whining on Dr Phil or the reunion show, she should be getting a criminal atty who will tell her to STFU!!
I hope his other children sue her as well and also go for an attachment. It is cruel what she has done to them and Russell’s family. Any normal person knows she IS the abuser not him. If you note, aside from her timeline not working, she merely states she ‘got hurt.’
Nothing about Russell causing her injuries. She could have gotten her duck lips caught on something breaking her own jaw for all we know. She was dreadful to Kim in season 1 and all her lies and drama this season show her to be the abuser. When she called Lisa in Hawaii, which according to Paul was only a few days after the White Party, she announced her separation and said everything is fine, Russell and I are just separating, wish you guys were here so I could whine in person. No mention of any injuries. As a matter of fact she sounded happy about it.
Lol! “wish you guys were here so I could whine in person.”
According to a previous article ( http://stoopidhousewives.com/2012/01/28/all-about-all-the-bravo-housewives-an-insider-spills-it/ ), the insider said that Taylor has been getting advance payments from Bravo & the production co. I wonder if this means that Taylor has already hid ….er…. transferred her money out and is living on the advancements, since these particular payments may not be attachable? After all, how do you attach advancements, since they’re not based on actual salary but potential salary?
because they are NONREFUNDABLE advances. So she keeps the monies even if the book doesn’t ever sell. They are attachable wherever they are, ie, a bank, nvestment acct, etc. When attached, they are held in escrow. But how much depends on the state.
If she has monies in NY for example, MMR is entitled to an attachment of triple the amount of the claim. MMR doesn’t pocket the monies, but they are held in an escrow account by sheriff until the case is resolved. In CA, MMR can only attach up to the amount of the claim.
They want that money, they don’t are what she must do or garnish in order to get their money.
What is a ‘right to attach” order? Does that mean that any income she has coming in is being affected by this order?
Kyle thrives off her role as “the good sister” All of her lectures to Kim are self serving. Kyle enjoys setting Kim up for disaster because then Kyle thinks she looks better. She is Bravo’s witch.
As I said before if I were one of the Investors id back my u-haul up to her door and start emptying the inside until I got whats due to me. Personally i hope they do attach her wages from the show,book and whatever else. Its a shame Kennedy will suffer but then lots of kids grow up well adjusted and dont live in BH and have 60,000 birthday partys
and have moms who work at Kmart
She will receive SS and According to Taylor she has a degree in something and has been to medical school! Not to mention she has a company or two. I would think she would do fine in the private sector. She may end up middle class but that isn’t the end of the world. It may be the end of Taylor Armstrongs world but then you reap what you sow!
Wonder where that large amount of money went. I know about the $60,000 B’day party, but they rented? A house wasn’t bought, and they say her cars not that great.
Doesnt she drive around in a Lincoln navagator
I saw a pap pic of her riding a big Escalade SUV. Also, iirc, her house is $9k/month in rent and Kennedy’s school charges tuition around $10k-15k.
Don’t forget all of the shopping Taylor does, the shoes she buys, She does think she is important enough to have a month long birthday celebration, which probably means presents for every single day.
The IRS is after her too, you don’t just shake off the IRS.
Who is the picture suppose to be on the side panels, Is that Taylor? It looks more like Kim from ATL. boobage but the marks across the face suppose to represent a busted cheekbone,eye socket or am I off on both counts?
Isn’t the drawing on the sides Jesus Barbie (Alexis)??
Could be, this one has me baffled. Before when I would make comments on new posts I would get a notice to confirm my subscription to that post. I am not getting them anymore, Is it because I (think ) have a wordpress account now?
From what little I read online about right of attachment orders:
– MMR could attach themselves, like a lien, onto Taylor’s real property, so that she wouldn’t be able to transferring that property without MMR getting involved.
- Putting the right to attach order on her assets (real property or not) could force her into declaring bankruptcy, thus saving them some time & money trying to go after it this way.
- It could also stop her from using valuable assets during the litigation period.
- Without this attachment, Taylor can transfer or hide her assets (like to her mother or daughter).
***
Noticed in the 1st video that Russell gaffawed when Taylor said she wasn’t the type of person to show anger or be angry.
Noticed in the 2nd video that Taylor said she lives in BH. I thought she didn’t or am I wrong?
I won’t even pretend like I’m able to interpret this, but here is a lot of info on what that means and seems to be specific to CA. http://www.kinseylaw.com/clientserv2/civillitigationserv/enforcement/prejdgattachment.html
Wonder if Traylor hid money?
Then MMR simply does an asset search. Any monies moved out of state, however would require a separate attachment order from that state.
There are not likely any under her own name. Do you really think MMR is going to fight to enjoin third parties who may have been “gifted” Traylor’s assets? I think that the only asset MMR is going to get will be the short-lived book proceeds and HWs paychecks.
SInce Taylor and Russell were in great financial difficulty trying to pretend they are RHOBH, it is HIGHLY unlikely Taylor ‘gifted anyone.” Particularly if the lawsuit stems from the Armstrongs embezzling investors funds for their own personal use.
I don’t see Taylor as a savvy business woman, do you? They may have set up various loan-out companies which are subchapter S or LLC’s. Those well not prevent MMR from piercing the corporate veil. There is case law on this.
That said, you and others here are more familiar with the lawsuit, so I’m only guessing what MMR might do, and defer to your authority if you have better info.
I don’t beleve however, that Taylor has gifted anyone except herself and perhaps her little brat. She’s too desperate for monies.
Thanks! Nice to meet you! You’re funny, as well as informed.
No, I’m no authority on the case; I’ve missed a lot. There are certain elements about it that I find fascinating, and that’s how I initially ended up here. I do see Taylor as being savvy–not like “business acumen” savvy, but by virtue of her antisocial personality. I think she is a master con artist and accomplished abuser of legal process and systems. So given those qualities, yes, I think she could avoid paying MMR after this initial attachment.
An attachment allows the creditor to levy your bank accounts until the debt is paid off. Once the creditor has won a judgment against you, they are allowed to have an order to attach and then execute a levy.
I wonder How much Calif allows % wise to have garnished from your wages
In Hawaii its 25%
This won’t be a wage garnishment, since Traylor is not an employee of S&S. I believe that they will collect 100% of everything they find, and it will go into escrow, pending the final outcome. But maybe they’ll allow an exempted amount, for her immediate living expenses. Open to corrections, here.
25% in CA but that is for wages only of individual. Her monies from RHOBH have already been paid and probably to an LLC. Thus, no limits on LLC or corp.
But they can’t take any money out until the judgement is won, correct? She owes the IRS as well and they will absolutely garnish your wages.
Yes I meant if they win how much can be legally Garnished.
Since Traylor is self-employed, they’ll have to seize whatever they can. I THINK it will be 100% of whatever they find–possibly exempting something for her basic living expenses; possibly not. If they don’t reserve some assets now, they’ll probably never get paid. Judgments are difficult or impossible to collect from self-employed people or people who pay themselves under a corporate veil.
Piercing the corporate veil is very simple and enures to MMR’s benefit b/c then there are no restrictions on the amount of garnishment as there would be with an individual.
Right, but it’s another round of litigation to pierce the corporate veil–a corp that isn’t known or might not even exist yet. I’m assuming that Traylor would stay one step ahead, having a good idea of what’s to come.
Well said my Irish friend.
Gail, this is an interim order/injunction. They’re asking to “reserve” her assets pending the final outcome. That means they seize now and the property is held in escrow/trust until the court decides.
She will not be able to spend any of the money she makes?
So Russell’s family will get the last laugh? No money for Trayliar? I’m sure Russell’s family only wants the best for Kennedy…as does everyone else.
We all want the best for Russell’s family Click! You are so right- on the money and was- the best for Kennedy… I admire you !!!!! you are one of my favorite people… as well as Made Pyle , and Ms SH for being the best that she could be!!!!!!
See ya later, ladies.
You would need to look to the Settlement Agreement to see what the ‘default clause’ says. Perhaps you know better than me (which is easy!) but MMR may have to go back to court to relitigate and get the judgement. They can still get the order to attach in the meantime, b/c the settlement agreement gives them the ‘evidence’ to suggest they will most likely prevail in any judgement.
The creditors already have a settlement in their favor. That us how they are able to petition for the order to attach.
Right, but Traylor’s made her affirmative defense of “duress,” trying to void the settlement, so they’re still in litigation to overcome that. MMR is fighting for their ability to collect on the settled amount, and Traylor is contesting the validity of the settlement.
I admit, I have not looked directly at anything other than what’s been posted here. If there’s more to the issue, I’m unaware of it.
If she is successful in voiding the settlement, then if I were her, I would fire my atty b/c she will be exposed to greater liability plus criminal charges.
Oooh man, I wish you would elaborate on this. I don’t see it, but now you have me intrigued. Please come back?
Again I have not seen the Settlement Agreement and only am speculating on what I read and why they entered into this agreement. But if the Armstrongs were using investor funds for their own personal use, they committed a number of felonies, including but not limited to fraud, breach of fiduciary duty, conversion, mail fraud, etc. If the company is/was public, then there are SEC claims as well. Traylor would be looking at the federal Big House for a very long time.
I would be very careful for what I wished for if I were her. She entered into this settlement agreement prior to Russell’s death and repped by an attorney (I’m assuming the atty part). She has an uphill climb trying to prove “Duress” especially since Russell and/or Traylor had to resign from all the companies immediately as part of the Agreement.
If someone can get access to that, you’ll have all your answers!
(I love that you’ve adopted “Traylor.” I can’t take credit, but it still makes me laugh.) I don’t want to go looking for the settlement agreement. Anyone have it? But they couldn’t have made an agreed waiver of prosecution or witness coooperation in a civil agreement, since that would be illegal. I don’t know what year they entered into the settlement either, so I’d wonder if the statute of limitations was up on those (alleged) offenses.
So if she viods the agreement they can come after her for More Money and possibly jail time..am i understanding this correctly
mssuburbua – you seem to be the go-to gal for latest info. Do you have link or seen what motions Traylor (i love ur name for her!) has filed and when?
I’m way out of loop and have much catching up to do! Thank you!
I am so *not* the go-to on this. I just opine on what gets posted. It can be addicting. I’m glad that you seem to have gotten hooked too.
Do you know what the default clause says? I have never seen the agreement and was only recently aware of the MMR lawsuit.
Now it makes sense why Traylor was able to get on show, b/c she is not a REAL RHOBH.
Those duck lips must have sucked in the producers at casting!