Opinion ID: 4105752
Heading Depth: 2
Heading Rank: 3

Heading: Miscellaneous Assets and Benefits

Text: Prior to its dissolution, Source 1 provided Hodge with a vehicle. On April 26, 2012, Source 1 still owed $19,761.22 on the vehicle, which Hodge paid on or about April 26, 2012. As of April 31, 2012, the value of the vehicle was $22,060. Before its dissolution, Source 1 made a deposit of $36,000 to a shaker cup manufacturer to gain a discount on shaker cup orders. Because Source 1 only used $17,712.17 of the credit, Source 2 used the balance of $18,287.83 to obtain a discount on its orders of shaker cups. Source 1 also made a deposit of $12,400 on a second shaker cup mold priced at $31,000. Source 2 used the deposit made by Source 1 to obtain the second mold after it paid the balance of $18,600. Source 1 also purchased a license to the business software “ProfitMaker” for $8,000 and had its employees spend time to improve it. Hodge transferred the software to Source 2 before the dissolution of Source 1 even though he claimed at the district court that he purchased it at the auction. Neither Hodge nor Source 2 ever compensated Source 1 for the credits toward the discount with the manufacturer or the credits toward the second shaker cup mold. Nor did they pay Source 1 for the “ProfitMaker” software. Prehn and Bandak filed their Complaint—and First Amended Complaint—against Source 1 and derivative actions on behalf of Source 1 against Hodge, Brown, and Clairborne on April 27, 2012, alleging breach of agreement and breach of fiduciary duty. On May 7, 2012, Source 1 issued a check for $20,000 to counsel for Hodge to cover litigation costs from defending this action.