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Speaker Asylum General speaker questions for audio and home theater. |
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Speaker Asylum General speaker questions for audio and home theater. |
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In Reply to: Maybe Albert will make enough posted by rnhood on April 19, 2005 at 17:38:57:
Wow, the man gets wiped out due to a flood.
Perhaps you are a beginning audiophile that dont remember, but Von Schweikert's New York made products were selling like hotcakes.
A flood ruined his company dude, what part of that dont you understand ?
I have a roof cleaning company in Florida.
We had 3 Hurricanes here last year.
I almost went out of business because I cant clean roofs that got blown off.
I have a friend that owns an old Von Schweikert speaker that Albert has honored the warranty on at personal expense.
Your post pissed me off so much that I called Albert, and he sent me this letter from his attorney.
I suggest you read it ?Edward A. Rose, Jr. Landmark Centre
ATTORNEY AT LAW 4550 Kearny Villa Road, Suite, Suite 224
A PROFESSIONAL CORPORATION San Diego, California 92123 (858) 560-1190Facsimile (858) 560-0071
February 1, 2001To Whom It May Concern:
My client, Albert Von Schweikert, formed a New York Corporation in May 1996 called Von Schweikert Research (VSR), in Watertown, New York. This highly acclaimed company manufactured and marketed a line of audiophile speaker systems and was quite successful. Mr. Von Schweikert can show you articles naming him
Growth Entrepreneur of The Year by the Small Business Association of NY due to the spectacular growth of his company following SBA capitalization.On January 23, 1999, a flood caused by melting snow caused total destruction of the inventory and electronic equipment at the Von Schweikert Research factory. The flooding was actually generated by an improperly constructed toxic waste reclamation site adjacent to the VSR factory, which was situated on higher ground. A seven-foot snowfall on top of the mountain melted extremely quickly due to the conditions at the site, releasing 350,000 gallons of contaminated water and mud into the VSR factory over the weekend of January 23-24 1999 without warning. These facts are public record and were published by the Watertown Daily Times.
Due to an ambiguous clause concerning flooding in the insurance coverage issued by the insurance carrier, Hartford of Connecticut, the damage claim was subsequently denied five weeks after the flood. As Von Schweikert Research was funded by the US Government through the SBA program, in addition to additional funding from the Jefferson County Industrial Development Agency (JCIDA), these organizations negotiated a settlement with Von Schweikert Research due to the fact that both the SBA and JCIDA had also funded the toxic waste reclamation site. This settlement stipulated that Albert Von Schweikert could walk away from the debt (less than $200,000) if he agreed to drop any potential litigation against the JCIDA, based on the lease agreement. However, Mr. Von Schweikert’s company was valued at almost $12 million at this point due to the spectacular growth of the company with it’s 300 dealers world-wide, so this settlement was initially deemed unsatisfactory by Mr. Von Schweikert, who spent the next three months in negotiations to keep the company intact.
Due to this enormous conflict of interest and the fact that the toxic waste reclamation site had cost the government several times more than the VSR corporation loans, the JCIDA and Community Bank N.A., (the originator of the SBA loan), forced VSR into a Chapter 7 bankruptcy in order to control their exposure to a lawsuit that could possibly be brought against them by Albert Von Schweikert.In their lease to VSR, the JCIDA guaranteed that the building would be suitable for woodworking, and in fact, stated that the JCIDA would protect the VSR Corp. against any potential damage to the wood cabinets caused by extreme weather conditions or other adverse factors. By allowing the toxic waste reclamation site to overflow onto Von Schweikert Research’s property, the JCIDA in fact violated the terms of their lease agreement, setting them up for a potential lawsuit by VSR. As the losses at VSR were estimated to be in the neighborhood of 2 million dollars, it was understandable that the SBA and the JCIDA wanted Von Schweikert to simply “go away.†Subsequently, the VSR Corporation and its assets were seized by Community Bank N.A., originator of the SBA loan, in order to protect their financial interests when VSR was unable to manufacture or ship product. Mr. Von Schweikert was forced into Chapter 7 along with VSR, but managed to pay creditors several hundred thousand dollars from the sale of personal property. After spending the next three months negotiating with various entities in Watertown and NY state, Mr. Von Schweikert was unable to restart the business in Watertown and decided to move the company back to California, where it originated.
Mr. Von Schweikert was able to restart his company several months later in California due to satisfactorily clearing up the remaining financial situation with the VSR Corp in Watertown. Although Mr. Von Schweikert was not personally liable for any warranty work due to customers of the VSR Corp, he personally took care of all speaker problems and paid for the work from his pocket. In fact, at this time, Mr. Von Schweikert has paid back almost all of the creditors in order to continue his relationship with his former vendors, and has a very good credit rating due to his personal sacrifice in taking care of the problems caused by the negligence of the JCIDA and their defectively designed toxic waste reclamation site in Watertown, NY.
If you have any further questions about this matter, please don’t hesitate to contact me directly, as I am the attorney of record for the new company, Von Schweikert Audio.
Sincerely,
Edward A. Rose, Jr.
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Follow Ups
- Re: Maybe Albert will make enough - ka7niq 04/28/0501:03:09 04/28/05 (0)
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