Sixteen plaintiffs took an additional step Friday to hold the defendant in the ongoing HeavyLite Trailers legal battle accountable for fraud.
Litigation against Andrew Sickler and his Blue Earth-based company HeavyLite Trailers has been ongoing after dozens of customers first went to court seeking refunds for trailers they say were never built.
A motion hearing that took place Friday was the first since the plaintiffs filed civil counts against Sickler individually earlier this summer.
It’s a step they say would protect themselves should Sickler file for bankruptcy.
While Sickler hasn’t taken that action yet, Jacob Birkholz, the plaintiffs’ lead attorney and an alleged victim himself, said it’s an important step.
“The main intention is that there would be greater protection for all of our judgments to survive bankruptcy,” he said. “You can’t declare bankruptcy on fraudulent behavior.”
On his part, Sickler was in part filing for a motion to stay, which could potentially pause legal proceedings pending criminal investigations.
So far, there have been no criminal charges filed against Sickler.
During Friday’s hearing, Sickler’s attorney Daniel McIntosh argued that shouldn’t be a factor in the decision on whether to grant the motion.
“All of these plaintiffs as we understand it in this case are potential criminal victims. While this factor alone isn’t dispositive, there’s clearly a basis here for Mr. Sickler to have reasonable grounds to apprehend prosecution. There’s clearly a chance of prosecution here,” he said.
“The fact that there isn’t a charge really doesn’t foreclose the issue in our case. Just one of the factors that needs to be taken into account.”
In the hearing, Birkholz responded, “the mere fact that there is a suggestion that people have made a complaint to law enforcement means nothing. … I would submit to this court that that doesn’t mean anything.”
Judge Michael Trushenski did not have an answer for either party Friday.
“On the issue of staying the proceeding, the court’s going to take that matter under advisement today, look at it a little closer. There is some case law in this area that the court wants to examine and further review the affidavits,” he said.