PHILADELPHIA – A legal funding organization has initiated action against a pair of North Carolina attorneys and their Arizona law firm, believing they breached a sale and repurchasing agreement centered on a New Jersey-based litigation.
Lawyers Funding Group, LLC of Philadelphia filed suit in the Philadelphia County Court of Common Pleas on Aug. 21 versus James R. Andrews, II and Natacha N. Andrews, Esq., both of Charlotte, N.C., and Andrews Law Firm, PLC, of Chandler, Ariz.
Per the suit, the parties entered into an “Account Receivable Sale and Repurchase Agreement”, where the defendants agreed to sell and LFG agreed to purchase a portion of the defendant’s interest in legal fees due to Sellers, as a result of contingent fee agreements with their clients.
That agreement was finalized on June 3, 2014, where the defendants sold and LFG and purchased a portion of the defendants’ interest in their fee from the following matter: Carmen Jacobs v. Orlando Santana Et.Al, filed with the Superior Court of New Jersey in Essex County, N.J.
On or about July 16, 2015, the defendants entered into the agreement with LFG whereby they sold, assigned, transferred and conveyed to LFG all of their rights, title and interest in the assigned legal fees, free and clear of all liens, claims, interests or encumbrances of any kind – and the suit claims LFG fully performed its obligations under the agreement by paying the purchase price of $15,000 to James Andrews and Natacha Andrews.
In order to induce the buyer to enter into the Account Receivable Sale and Repurchase Agreement, the defendants provided documents indicating the injuries sustained in the Jacobs matter were of a very serious nature. However, LFG has repeatedly requested the status of the Jacobs matter from the defendants, following the terms of the agreement, but the defendants have allegedly refused to provide that information.
The Purchase Price advanced and fees accrued total $34,500, along with remedies for breach totaling including 25 percent of the amount due, or $8,625 – for a total of $43,125. That is in addition to 10 percent of that total constituting legal fees of $4,312.50, for a grand total of $47,437.50.
For counts of breach of contract and a demand for accounting, the plaintiff is seeking damages of $47,437.50, plus a full, complete and timely accounting along with a reservation of the right to further amend the complaint.
The plaintiff is represented by Alan R. Zibelman of Zibelman Legal Associates, in Philadelphia.
Philadelphia County Court of Common Pleas case 170801903
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at firstname.lastname@example.org