Re: Rutledge (Kleman) case

<DKIESQ@aol.com>

no harm in trying it.. but in the end i'd rather be
rid of the affair

I finally tracked down Albert Dayan last night.

Albert told me that he reached a deal with Jacobs to
pay $100,000 K in
increments of $25K beginning on the date the
stipulation between Dayan and Jacobs
is signed. I am supposed to receive a copy of the
stipulation from Dayan as
soon as Jacobs drafts it. According to Dayan, the
payments are to span over
a relatively short period of time a month or two,
but I will know if it is
real and how long the payments are to take if I
receipt a copy of the
stipulation Jacobs is supposedly preparing. The
idea is that Jacobs gets money now
and in increments, but does not release anyone until
he gets the full $100,000.

Here comes the ridiculous part . . .

Dayan expects us to trust that Kleman will make the
necessary payments and
give up the statue to Kleman before we get Jacobs'
release, so that Kleman can
try to sell it. If Jacobs were to give you credit
for the statue when you
give it to Kleman, this might be ok with appropriate
security from Kleman, but
as I understand it, Jacobs releases no one until he
gets all the money.

In other words, Dayan expects you to give up your
only leverage over both
Jacobs and Kleman before Kleman makes significant
payment to Jacobs and before
Jacobs releases you.

If you gave Jacobs the statue, you would have
little, if any, remaining
liability to Jacobs. But Jacobs does not want you
to give him the statue because
Jacobs does not want to have to sell the statue
himself; Jacobs wants Kleman
to sell it for him, but at your risk. Makes no
sense.

If and when it is proven that Jacobs has consented
to this deal, I think I
have to tell Jacobs, that you want a writing from
Jacobs confirming that Jacobs
and his client are accepting the return of the
statue and are instructing
you to deliver the statue on Rutledge's behalf to
Leah. At the same time, take
as much in the way of goods as you can from Leah
now and get a confession of
judgment and promissory note for an amount equal
to:
    $125,000 - value of goods  delivered to you
$25,000.

The extra $25,000 is incentive to make sure that
Kleman pays and will be
deducted once you receive the release from Rutledge
and Jacobs. The remainder
of the note and confession of judgement are released
when you receive
acceptable goods that, together with the goods to be
initially delivered, cost Kleman
$125,000 in the aggregate Obviously, sufficient
proof of ownership of the
goods delivered to you, or in the absence of any
practical means of proving
ownership, reasonable security, has to be provided
to you in order that you
return the note and the confession of judgment.

If Jacobs is not willing to give you the letter of
acceptance and direction,
then I think I have to tell him that he is going to
have to move forward
with the litigation because you will not give up the
statue to Kleman. In that
case Kleman will make no payment, Jacobs risks the
possibility that claims
against you will be dismissed, you will keep the
statue and all that he will be
left with is a claim against Kleman, who, without
the statue, will lack the
means to pay his client.

I will also tell him that, If, on the other hand,
we lose the motion to
dismiss, you will simply deliver the statue to him
then and apart from
litigation fees be no worse off than you are now.
As to litigation fees, I can tell
him that Weil has referred us to former partners of
theirs who, now that all
of the research has been completed will prepare the
papers and argue the
motion to dismiss for substantially less. In any
event, whatever the charges are,
we will have a claim against Kleman for them.
Moreover, since we are in New
York, it will be easier and less expensive for us to
proceed against her for
whatever moneys we are entitled to. The more money
or other things of value
we then get from Kleman, the less likely Jacobs will
be able to recover
anything further for his client.

Consequently, I will tell Jacobs that his choices
are limited; either Jacobs
gives us at least a letter of acceptance and
direction to deliver to Kleman,
and accepts the payment plan from Kleman, or the
most he will likely get
after he spends the time and money required for
litigating the motion to
dismiss, is the statue, which Jacobs knows he can't
sell and will not yield any
money for his client and him.

Does this sound like an acceptable approach to you?

Please advise.

Darren

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