$13.62 Million Dollars

[Sy Zabrocki]

The Dec. 1995 issues of Music Trades and Musical Merchandise Review both are
reporting a $13.62 million court judgment awarded to Vern Schafer of Los
Angeles againt Daewoo, a  Korean conglomerate. It is said to be the largest
settlement in music industry history.

Vern Schafer operated a chain of piano stores in the LA area under the name
Colton Piano Co. Daewoo is a manufacturing giant who also produced pianos
under various names. The story is long so here is a summary:

In the 1980's Schafer contracts with Daewoo to produce pianos under the name
Schafer & Sons. Acting as distributor he then sets up other dealers to sell
Schafer & Son pianos<>Schafer puts up a $5.0 million guarantee for the
pianos being produced at Youjou, Korea<>By late 1991 Schafer had run up a
$4.0 million debt at Daewoo.  Daewoo then sues pushing Schafer into Chapter
11<> Schafer countersued, claiming the pianos were poorly built and not
salable in the U.S. market.<>Schafer claimed Daewoo began liquidating his
inventory and then sold pianos under his name without his permission<> The
jury sided with Schafer stating Daewoo had "willfully defrauded him and
destroyed his business<>A jury in Orange County awarded Schafer $3.62
million compensatory damages and an additional $10.0 million in punitive
damages.<>Daewoo lawyers state this is an aberration and a miscarriage of
justice.<>Schafer attends all 31 days of trial.

P.S. Let's see now, 31 days into $13.62 million equals about $440,000 a day.
Yep! I'd take a month off for that kind of bread. If Daewoo ever has to pay
up after appeals there'll probably a few LA lawyers wearing new suits.

Sy Zabrocki (Billings, MT)
only4zab@mcn.net