Case of the Day: Belmont Partners v. Mina Mar

The case of the day is Belmont Partners, LLC v. Mina Mar Group, Inc. (W.D. Va. 2010). It’s a perfect example of what should not happen in arbitration–the parties agreed to arbitrate, then settled, then one reneged on the settlement, then they sued each other in two countries.

The parties were both in the business of buying and selling “clean shell corporations.” These are corporations with “no sales, no liabilities, and no assets.” The idea, according to Mina Mar, is that the shares of “clean shell” companies “can be readily traded and private operating companies can merge with [them] and ‘go public.'” I have no comment on the propriety of this business!
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