Davis|Stibor was retained by a New York investment company to represent it to collect on a commercial deficiency judgment, and to pursue a fraudulent transfer claim against the defendant. The defendant, a California partnership, retained a prestigious 100 lawyer law firm based in Los Angeles. After the defendant was served, Davis|Stibor received a letter from its high-powered attorney demanding that Davis|Stibor’s client immediately voluntarily dismiss the complaint, or face paying the defendant’s attorney’s fees and costs. On behalf of its client, Davis|Stibor rejected the demand and pursued the case. Shortly after the demand was rejected, confident that it would prevail, the defendant filed a motion to dismiss the case, and requested attorney’s fees and costs. Faced with a very difficult legal argument, Davis|Stibor opposed the motion to dismiss, and after lengthy oral argument, the Court denied the defendant’s motion.
After the defendant’s motion was denied, Davis|Stibor aggressively pursued discovery. During discovery, the defendant claimed that it was insolvent and could not pay any judgment that Davis|Stibor’s client obtained. Regardless, after making several document requests, as predicted, Davis|Stibor discovered that the defendant transferred tenant rent funds that should have been used to pay the promissory note to various third-party businesses and individuals. After Davis|Stibor discovered these documents, rather than allowing the third-parites to be named as co-defendants, the defendant offered to settle the case. After limited negotiations, Davis|Stibor was able to secure a six figure settlement on behalf of its client.
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