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On April 21, 1993, petitioner filed for bankruptcy in order
to avoid paying the rent due under the facilities lease. A
bankruptcy trustee was appointed for petitioner. On April 23,
1993, Mr. Cotter filed a lawsuit against petitioner, Dr. West,
and Mr. Icel in the United States Bankruptcy Court for the
Northern District of California seeking the dissolution of
Aeternum, an accounting, and damages in excess of $1 million.
Petitioner employed various attorneys in connection with his
bankruptcy and the defense of Mr. Cotter’s lawsuit.
Contemporaneous with the lawsuit being filed, petitioner removed
the rental equipment from the facilities leased by Aeternum and
stored some of the equipment in a storage space rented in Dr.
West’s name.
An attorney representing petitioner in Aeternum’s affairs
made the following reference for May 1, 1993, in an invoice to
petitioner: “telephone conf. with * * * [petitioner] re
representing * * * [Dr. West] in action against landlord re
equipment sold to * * * [Dr. West] by * * * [petitioner]”. A
different attorney representing petitioner in his bankruptcy and
Aeternum affairs made the following reference for July 23, 1993,
in an invoice to petitioner: “conference with * * * [Dr. West’s
attorney] re: his comments and changes pursuant to list of
equipment for items sold”.
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Last modified: May 25, 2011