MTH Settles Lawsuit with Korea Brass
MTH officially announced in their 8-13 edition of their electronic newsletter that their lawsuit with Korea Brass, a.k.a. MKT has been settled. MTH hasn’t posted the announcement on their website yet so here it is….
Columbia, Maryland, August 12, 2008 — The federal court case between M.T.H. Electric Trains and MKT (formerly Korea Brass) has been resolved via settlement between the two firms. Terms of the settlement include payment by MKT to M.T.H. in the form of cash, HO tooling from the Broadway Limited product line and Lionel HO product line, a sub-license from
Precision Craft Models for the DCC patent held by Real Rail Effects and dismissal of the MKT/Korea Brass financed QSI Patent Infringement case against M.T.H.
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MTH Attempts To Collect $$$ From Korea Brass by Erol Gurcan
In my last legal article,
(written at the request of the Coil Couplers web site), I stated that
in MTH’s fraudulent transfer of assets lawsuit against Korea Brass aka
Hagye Trading/Model Korea Trading (MKT), the court on November 20, 2007
issued a temporary restraining order (TRO) and entered an order
directing all monies paid by Lionel to Korea Brass were to be deposited
into a court approved interest bearing escrow account. The practical
effect of this was, Lionel, which is not a party in MTH’s lawsuit
against Korea Brass, will not be able to take delivery of trains that
it paid for and which were manufactured by KB, since the money is going
into a court escrow account rather than directly to KB. Ultimately, we
hobbyists will not be able to purchase the trains which are affected in
these legal proceedings, at least for now.
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Continue to read MTH Attempts To Collect $$$ From Korea Brass by Erol Gurcan
Legal Explanation of Latest Coil Couplers Posts
Over the last two days, there have been a few posts on the Coil Couplers of America website stating that MTH has cut off Lionel’s supply of locomotives, including some of the new Legacy models, from its supplier Model Korea Trading Company (aka MKT, the company named in the Coil Couplers post of the last two days) due to the court ordered stoppage of payments by Lionel.
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Continue to read Legal Explanation of Latest Coil Couplers Posts
MTH Files Lawsuit Against Korea Brass, Inc UPDATE
Charlienassau of Nassau Hobbies and his lawyer/friend Erol come through yet again with some interesting details about the legal proceedings in the O Gauge industry. This time, on the OGR forum, Charlie posts Erol’s explanation and findings about why MTH filed a new lawsuit against Korea Brass.
View Charlienassau’s post on OGR
MTH Files Lawsuit Against Korea Brass, Inc
From the Detroit Free Press:
A Maryland model train maker that won a $40.7-million judgment in 2004 against Macomb County-based Lionel LLC and a Korean supplier has returned to U.S. District Court in Detroit to collect damages from the Korean firm.
Mike’s Train House Inc. of Columbia, Md., charges in a lawsuit filed last week that Korea Brass Inc. of Charlottesville, Va., transferred all of its assets to a new company, Hagye Trading Co., to avoid paying the judgment.
In 2004, a federal jury in Detroit awarded $27.7 million to Mike’s Train House, which alleged that Lionel of Chesterfield Township and Korea Brass had stolen its design for making zinc die cast O gauge steam engines.
The judgment forced Lionel to file for bankruptcy protection while it appealed the judgment.
Hagye Trading Co. isn’t listed in the Charlottesville phone directory and could not be reached for comment.