(Photo: Shutterstock.com)Houston Litigation Funder Wins $2.4M in Dispute With Missouri Law Firm
Litigation funder Series 5-Virage Master alleged Ramsdell Law Firm of Springfield. Missouri, failed to make any payments on a $1.4M loan.
August 13, 2019 at 04:55 PM
3 minute read
A litigation funding company in Houston won a $2.4 million judgment on Monday against a Missouri law firm that allegedly failed to make any payments on a $1.4 million loan.
Judge Lauren Reeder of the 234th District Court in Harris County, Texas, signed an order granting a final summary judgment in favor of Series 5–Virage Master against Ramsdell Law Firm of Springfield, Missouri, and owner Daniel R. Ramsdell.
The judgment ordered the defendants to pay $2.407 million in unpaid principal and interest, $11,295 in attorney fees, and court costs. The post-judgment interest rate was set at 18% annually.
Ramsdell did not immediately return a call seeking comment. Neither did the attorney that represented Ramsdell Law, Timothy Lankau of Ware, Jackson, Lee, O’Neill, Smith & Barrow in Houston.
Houston lawyer Ashish Mahendru, who owns Mahendru PC and represents the funding company, was out of the country on Tuesday and could not be reached for comment.
As alleged in the original petition in Series 5–Virage Master v. Ramsdell, the law firm, which specializes in cases related to truck crashes, borrowed $1 million from the litigation funder in May 2016 and agreed to repay the money with at least 60 percent of proceeds from seven cases.
In October 2016, the funder alleged, Ramsdell Law Firm requested an additional loan. So the funder agreed to provide an another $350,000, upping the principal amount at that time to $1.444 million after costs.
Ramsdell personally guaranteed payment of the loan, the petition alleged.
The funding company alleged in the petition that in 2017 and 2018, Ramsdell Law Firm received proceeds from at least five of the seven lawsuits, and was required to pay it at least 60 percent of those proceeds.
“However, in derogation of its duties and obligations under the loan agreement, defendant law firm failed and refused to account for or make any payments whatsoever to plaintiff,” the funding company alleged, adding that the law firm also failed to notify it when it had received case proceeds.
Because the defendants have paid nothing toward the debt, the funding company alleged, it accelerated the maturity of the note and demanded payment in full.
Series 5–Virage Master brought breach of contract, conversion, unjust enrichment and foreclosure of lien causes of action against the defendants.
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