• Welcome to Elio Owners! Join today, registration is easy!

    You can register using your Google, Facebook, or Twitter account, just click here.

Elio Court Hearing On 3/27/2018...

BaldGuy

Elio Addict
Joined
Sep 22, 2014
Messages
676
Reaction score
1,096
Location
Morgantown, wv
I sure hope that they were on the up-and-up with the refundable deposits and that they are in fact in a safe place. Otherwise this could (and should) go very badly for them.
Paul has already addressed that in a speech. He said he could have spent that money, but it didn't seem right for him to do that, so keep it in escrow. I believe they did just that, as they have paid it back when requested to members of this group. So no worries, they will just have to show them they did this. Good thing he didn't do what he thought he could have and did what he thought was right. :)
 

Made in USA

Elio Addict
Joined
Mar 30, 2017
Messages
1,166
Reaction score
982
Location
ohio
Problem with the escrow is that the penalty is $1000 a day, UNTIL, Elio shows proof that it is in fact in an escrow account and that time started from the day of the judgment. Its also irrelevant to where the reservationist lives. If only one person from Louisiana made a refundable deposit, the judgment stands for that penalty. The other penalty dealing with manufacturing without a license is a separate issue.
 

Rob Croson

Elio Addict
Joined
Apr 28, 2015
Messages
1,384
Reaction score
2,279
Location
Ohio
Problem with the escrow is that the penalty is $1000 a day, UNTIL, Elio shows proof that it is in fact in an escrow account and that time started from the day of the judgment.
The $1,000 per day fine does not apply unless EM fails to provide evidence of a trust within the 60-day deadline. It appears that it is then retroactive to the day the judgment was signed. So day 60=no penalty. Day 61 = $61,000 penalty! (IMO EM dropped the ball on this one. They should have had that with them at the court hearing to provide as evidence.)

EM has also been assessed with paying the LMVC attorney fees. No indication what these are.

Also, it appears that the judgment mentions TWO fines, not just one.

* $38,250 for operating as a recreational products manufacturer without a license for >1530 days.
* $38,250 for operating as a recreational products dealer without a license for >1530 days.

Note that are separately listed fines, for separate reasons. Even though the amounts are identical, they are different fines. (FWIW - These fines amount to $25 per day, each.)

So EM has to pay $76,500 in fines, PLUS attorney fees for both sides. A substantial reduction from the $500,000 originally levied, but will probably still cost them over $100k, when all is said and done.
 

Rob Croson

Elio Addict
Joined
Apr 28, 2015
Messages
1,384
Reaction score
2,279
Location
Ohio
If they don't provide proof within 60 days, they have to pay a fine. The amount of the fine is equal to $1k per day from the judgment was issued. It is retroactive, but does not explicitly use that word.

I would bet the "Recreational Products Manufacturer" has to do with the three-wheeled design. I don't know Louisiana law, so I can't say for sure.
 

Ty

Elio Addict
Joined
Feb 28, 2014
Messages
6,324
Reaction score
14,759
Location
Papillion, NE
I just get how Elio is a Manufacturer when they haven't manufactured anything in Louisiana. A dealer? Okay, they established themselves in Louisiana but didn't operate from there so even if you consider selling Spot-in-Lines as selling vehicles, they didn't do THAT from Louisiana either. This is no different than selling fireworks in Alabama to people from Georgia. It's not a crime to sell them in Alabama - just in Georgia.

Anyway,
Aside from the whole "are they a manufacturer or dealer?" argument, neither action was done from Louisiana. Basically, Elio has a lease in Louisiana and sold some used equipment they owned that was located in Louisiana (but sold from Arizona). What law was broken?
 

Ace

Elio Addict
Joined
Dec 6, 2017
Messages
151
Reaction score
169
Location
Pinson, Alabama
I just get how Elio is a Manufacturer when they haven't manufactured anything in Louisiana. A dealer? Okay, they established themselves in Louisiana but didn't operate from there so even if you consider selling Spot-in-Lines as selling vehicles, they didn't do THAT from Louisiana either. This is no different than selling fireworks in Alabama to people from Georgia. It's not a crime to sell them in Alabama - just in Georgia.

Anyway,
Aside from the whole "are they a manufacturer or dealer?" argument, neither action was done from Louisiana. Basically, Elio has a lease in Louisiana and sold some used equipment they owned that was located in Louisiana (but sold from Arizona). What law was broken?

Maybe I missed it somewhere, but I have not seen when Elio was told beforehand that it would be required to have these licenses to simply lease a factory facility in Louisiana. I mean, this requirement just popped up one day two years down the road and made retroactive? What is even the cost of such a license?
 
Top Bottom