- 5 -5
By the end of May 1992, petitioners began to suspect that
the Dubatos were having serious financial problems because they
started “letting people go” and because they were not meeting
many of their expenses. At that point, Mrs. Bauer went to
Drunken Lobster once a week, not so much to assist, but to “bug”
the Dubatos for payment. Petitioners offered to accept $500
every other week, without interest, if the Dubatos would just
start paying them back. The Dubatos, offering only excuses, did
not agree with that arrangement.
Throughout 1993, the Drunken Lobster ran on a skeleton
budget and crew. In fact, there were days that the Drunken
Lobster did not open. The Dubatos permanently closed the Drunken
Lobster in October 1993. At no time during 1993, did petitioners
advance the Dubatos additional funds, despite the fact that the
Dubatos requested them to do so.
Petitioners did not take legal steps to collect on the debts
(other than possibly writing one demand letter) because the
Dubatos had no assets from which to satisfy their debts.
Petitioners’ personal observations of the Dubatos’ financial
situation revealed that they owned no assets outright and that
they had leased everything, including the three-bedroom house in
which they lived, the premises where the Drunken Lobster was
located, and all the Drunken Lobster’s property and equipment
(i.e., kitchen equipment, tables, chairs, tablecloths,
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Last modified: May 25, 2011