Aug 06, · The building will be Fillpoint's main asset when it exits bankruptcy protection. General Electric Capital Corp. and the U.S. Small Business Administration hold mortgages on the property. The case is Fillpoint LLC v. Michael Maas et al., case number G, in the Court of Appeal of the State of California, Fourth Appellate District, Division Three. --Editing by Andrew karacto.xyz: Erin Coe. Aug 14, 1 Petition Chapter 11 Voluntary Petition. Fee Amount $ Filed by Fillpoint, LLC. Chapter 11 Plan due by 12/12/ Disclosure Statement due by 12/12/ Government Proof of Claim due by 2/11/
In Fillpoint, LLC, v. Maas , Case No. G, Cal. This case answers what had previously been an open question under California law: whether an acquiring company can obtain a non-compete that begins to run upon termination of employment as opposed to or in addition to a non-compete that begins to run upon closing from a shareholder who becomes an employee of the buyer. Robb , 33 Cal. Maas eventually resigned his employment three years after the acquisition of Crave and, about six months later, began working for a competitor of Crave.
On appeal, the Court of Appeal held that the trial court erred in its conclusion that the covenants in the SPA and the employment agreement were separate. Despite winning this battle, Fillpoint lost the war. The Court of Appeal held that reading the agreements together does not mean that the covenants contained in the employment agreement are enforceable. More specifically, Section permits the enforcement of covenants not to compete to protect the goodwill of a business in connection with the sale of such business.
It appears that the problems that plagued Handleman are now plaguing Fillpoint, which is off Route 9 in Malta and also had leased an office in Indiana before its bankruptcy filing. The company is asking the bankruptcy court for permission to continue paying employees to keep the business going as it seeks to sell assets.
A call to Fillpoint for comment was not returned on Wednesday. Neither was a call to the company's bankruptcy lawyers. GE Realty holds the mortgage on the Fillpoint building.