Thursday, March 18, 2021

DUE DILIGENCE CAN SAVE YOUR FINANCIAL ASS

by Bob Walsh

There is a parachute school just up the road from me in Lodi.  It has been there a very long time.  Sport parachuting is inherently dangerous,  They have one really bad outcome every year and a half or so.  Excrement occurs.

About five years ago two people, an instructor and a student, got turned into a vineyard pizza at the conclusion of a jump.  The 18-year old student's mother was there watching.  I am sure it was unpleasant for her.  

At any rate it turned out the instructor was not properly certified.  The mother sued.  A judge ruled that because of the egregious failure of the parachute school's owner to do even a basic check on the certification of the instructor he could be PERSONALLY held liable for the $40 million judgment despite the fact that the school is incorporated.  I don't know for sure but I strongly suspect the school was NOT insured for that amount of liability.     

1 comment:

Trey said...

$40 Million. Not a chance. Bankruptcy then liquidation of assets and if he owns a plane maybe some cash left over.