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reverse alter-ego liability. Cook Islands Ltd.Liab.Cos.Act 2009 §45.
1
Notably, an unsecured creditor also has, in the absence of statute, no
substantive right, legal or equitable, in or to the property of even his own debtor.
This is true, whatever the nature of the property; and, although the debtor is a
corporation and insolvent. The only substantive right of a simple contract creditor is
to have his debt paid in due course. His adjective right is, ordinarily, at law. He has
no right whatsoever in equity until he has exhausted his legal remedy. Accordingly, a
court does not have equitable jurisdiction to use receivership to enforce unsecured
creditors’ claims before they have been reduced to judgment. Pusey & Jones Co. v.
Hanssen, 261 U.S. 491, 497 (1923); e.g., Williams Holding Co. v. Pennell, 86 F.2d
230 (5th Cir. 1936).
ISSUE 2: THE REQUIREMENTS OF 28 U.S.C. 2001 APPLY TO
PERSONALTY PURSUANT TO 28 U.S.C. 2004.
If there were a legal basis to liquidate any domain name, as a general rule
“Any personalty sold under any order or decree of any court of the United States
shall be sold in accordance with section 2001 of this title”. 28 U.S.C. 2004. No
justification has been offered to explain a different approach in this case. If there are
parties interested to purchase a domain, there is no logical reason why they would
not bid on the domain in a public auction.
1
The same result would be reached in applying Texas corporate law. As explained by the Fifth
Circuit in Bollore, “Texas courts will not apply the alter ego doctrine to directly or reversely
pierce the corporate veil unless one of the ‘alter egos’ owns stock in the other.” Id. at 325. Since
Jeff Baron owns no stock in either Novo Point, LLC, nor Quantec, LLC, alter-ego liability
would not apply.
Case 3:09-cv-00988-F Document 472 Filed 04/22/11 Page 4 of 11 PageID 17503