Available Line of Credit Evidences Ability to Pay

Business Valuation Update BVLaw
Legal and Court Case Update
May 29, 2001
4812 Radiotelephone Communications
517312 Wireless Telecommunications Carriers (except Satellite)
intellectual property
economic damages & lost profits

Zaxis Wireless Communications, Inc. v. Motor Sound Corporation, et al.
No. C035616 (CA App. 3 Dist. 2001)
US
State Court
California
Court of Appeals
Blease

Summary

The California Court of Appeals considered whether Zaxis had the ability to pay a punitive damages award. The appellate court noted that while Zaxis had a negative net worth for accounting purposes, it had available $19 million cash on hand and a $50 million credit line.

See Also

Zaxis Wireless Communications, Inc. v. Motor Sound Corporation, et al.

The California Court of Appeals considered whether Zaxis had the ability to pay a punitive damages award. The appellate court noted that while Zaxis had a negative net worth for accounting purposes, it had available $19 million cash on hand and a $50 million credit line.