James A. Cripe, former president and CEO of the now-defunct Outlaw Decoys Inc., has received permission from U.S. Bankruptcy Court here to proceed with a lawsuit against the company.


In May, Outlaw Decoys, a Spokane Valley-based maker of hunting decoys and online retailer of outdoor goods, ceased operation and filed for protection from creditors under Chapter 7 of the U.S. Bankruptcy Code.


Cripe, a secured creditor of the company, is suing the company in Spokane County Superior Court for allegedly defaulting on a retirement and reorganization agreement.


Prior to shutting its doors, Outlaw Decoys was located in a 12,000-square-foot space at the Spokane Business & Industrial Park, in Spokane Valley. It had 12 employees as of earlier this year.


The bankruptcy filing lists the companys total liabilities at about $1.2 million and total assets at about $600,000. In Chapter 7 proceedings, assets are liquidated, and the proceeds are distributed to creditors.


Kevin ORourke, an attorney with Southwell & ORourke PS who is representing Outlaw Decoys in its bankruptcy proceeding, says the company encountered some manufacturing problems in 2001. Legal issues have arisen since then, and the company was unable to overcome both the manufacturing and legal issues, ORourke says. He declines to expand on the manufacturing problems and the legal issues. Tim Cripe, president of Outlaw Decoys and James Cripes son, declined to comment.


In addition to James Cripes suit against the company, which was filed last October, Lyric Capital Investment Corp., a West Palm Beach, Fla., venture-capital company, has filed suit in Superior Court against James A. and Adele Cripe and Outlaw Decoys. The complaint filed with the court alleges a deliberate scheme by James Cripe to rescue Outlaw from near insolvency by fraudulently obtaining capital from Lyric Capital.


Lyric had invested about $1.8 million in Outlaw between 2000 and 2002.


Outlaw Decoys shut down operations in May.