However, what plaintiffs overlook (and fail to state) is that, in acquiring the website, Internet Brands has already paid plaintiffs millions of dollars, representing 100% of the guaranteed payment called for in the Agreement, and approximately 90% of the total possible payments due under the Agreement. At issue is not the purchase price for the website but, rather, a single Contingent Deferred Payment called for under the terms of the Agreement. While Internet Brands does not dispute that money might be owed to plaintiffs, a dispute has arisen between the parties as to the basis of calculating the Contingent Deferred Payment. Contrary to plaintiffs’ unfounded contentions, Internet Brands has never failed or refused make a Contingent Deferred Payment. Rather, the parties simply cannot agree as to how to calculate the amount that might be owed.By way of the instant Application, plaintiffs seek to attach the assets of Internet Brands, Inc. (“Internet Brands”), a publicly traded company with nearly $60 million in cash on hand. Plaintiffs’ Application is not brought for the recognized purpose providing security for eventual satisfaction of the judgment.
This is interesting. Reading between the lines, Waitt stated in the original filing that the deferred payment at dispute was $800,000. If Internet Brands claims that $800,000 amounts to just 10% of the total possible payment and 90% has already been paid as a lump sum, it means that the total payment was no less than $8,000,000.00.