General Discussion

i'm wondering why media matters doesn't just concede, using a bankruptcy strategy.

hear me out.

once upon a time, i was in a pretty severe car accident. passenger in a cab (so clearly 0% my fault), stalled out on a freeway at night, not lighting, rear-ended at highway speed (minus a small but critical amount of braking).

after years of stalling, i got the insurance maximum from both the car behind and the cab company's insurance policies, both of which were the legal minimum. after repaying my own insurance and the lawyers, i wasn't left with much.

i asked the lawyers couldn't we go after the cab company for more? there was clearly much pain and suffering (i couldn't eat solid food for a year, among other issues, some of which i still have 30 years later).

their advice (confirmed by several other lawyers) is to take the insurance settlements and be done with it. the explanation was that if i won a major award from the cab company, they would simply stall on paying, and grind down the business. minimal repairs on cabs, never invest in anything new.

meanwhile, the same owners would start up a new cab company and invest everything in that. their business would transition to a clean business, and i'd be left with just the salvage value of some old cars with a ton of mileage on them.

stinks of fraudulent transfer, but there are legal ways to do it, especially if you avoid doing anything overt during the 90 days just prior to filing bankruptcy.


this strategy wouldn't work for the wall street journal or columbia university as they have huge assets, but i would think it would work for a group like media matters.


yes? no?