Judge Calls on Monaco to Pay $1 Million to Resorts Company

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Byline: Tim Christie The Register-Guard

A judge has ordered Monaco Coach Corp. to pay a former business partner $1 million after it failed to make a payment that came due in connection with a lawsuit settlement agreement.

But with Monaco, a Coburg RV maker, in Chapter 11 bankruptcy proceedings, it's not clear when or if Outdoor Resorts of America will see the money.

Outdoor Resorts is owned by Robert Schoellhorn, CEO of Marathon Coach in Coburg. Outdoor Resorts sued Monaco in 2007 in Lane County Circuit Court, alleging it was owed more than $4 million for a share of the profits from RV resort projects that the two companies jointly developed and financed.

Though the case was filed in county court, U.S. District Judge Michael Hogan mediated the dispute. Last June, the two companies entered into a settlement agreement. Terms of the settlement were not publicly disclosed.

But in a suit filed Feb. 27 in U.S. District Court, Outdoor Resorts alleged that Monaco was required to make a $2 million payment on Jan. 2. Outdoor Resorts said it was told by Monaco that it didn't know when or if it would make the payment.

In response, Monaco admitted that it failed to make the Jan. 2 payment.

Six days later, after no testimony or trial and on the same day that Monaco filed for bankruptcy, Hogan entered a $1 million judgment in favor of Outdoor Resorts. Hogan offered no opinion on his judgment, other than to say it was "based upon the record." Hogan did not return a phone message Tuesday seeking comment.

Schoellhorn said Monaco has been in default on its payment since the start of January, and despite talks mediated by Hogan, Monaco didn't come up with the money.

"We didn't know what to do about it," he said. "I hoped that something would happen where they could pay it. Promises, promises, but it never happened."

Schoellhorn said he hasn't "the foggiest idea" if or when Monaco will make good on the judgment.

Monaco spokesman Craig Wanichek said company officials are aware of the judgment.

"It is a pre-petition judgment as far as we can tell" - meaning it was entered before Monaco filed for bankruptcy - "that will be resolved with the other pre-petition creditors. …