For rock guitar players, there is nothing more in demand than a Dumble amplifier, known for its amazing tone. Fewer than 300 of the amplifiers exist, and the waiting list for a new one is at least a decade. Rock musician John Mayer placed his Dumble amplifier, which was previously owned by the legendary musician Jackson Browne, on consignment with the Maverick Music store, outside of Charlotte, N.C., hoping to get $160,000 for it. Instead, Mayer will likely get nothing because Maverick Music filed for bankruptcy after the amplifier was already sold to a collector, but before Mayer was paid. Mayer wasn’t the only customer affected by the bankruptcy, customers of Maverick Music are allegedly owed more than $500,000 from sold instruments.
Although consigners have rights under the Uniform Commercial Code and the Bankruptcy Code, little can be recovered unless the security interest in the consigned item has been properly perfected under state law and the necessary steps have been taken to provide the required notice and obtain priority for your claim. However, where the consigned property was sold to a good faith purchaser before the bankruptcy, but the seller was never paid for the item, the seller will likely recover very little, and will simply have to wait in line with all of the other general unsecured creditors.
If you are considering filing for bankruptcy, you will need an experienced attorney to evaluate your case. The attorneys at the firm of Laura Margulies & Associates, LLC have successfully handled thousands of cases in Maryland and Washington, D.C., many involving unique or novel issues. Please contact us today for a consultation at 301-816-1600. Our website address is: www.law-margulies.com.