Significant Business Litigation Victories

$588,000 Judgment for Breach of Contract

A New York finance company lent almost $475,000 to a family business in the Inland Empire region of California. The debtor corporation defaulted on its loans and filed for Chapter 7 bankruptcy. Fortunately, the lender had required all of the family members who owned the business to personally guarantee the debts.

The finance company hired Los Angeles business trial lawyer Jeffrey Cowan of the Cowan Law Firm in Santa Monica, California to try to recover its money. Working with fellow trial lawyer and friend Mark Kassabian (of Buehler & Kassabian, LLP in Pasadena), Jeffrey Cowan sued the debtor family members in January 2009 in the Riverside County Superior Court for breach of contract.

Promptly thereafter, Jeffrey Cowan sought and obtained (1) a temporary restraining order freezing the defendants’ assets and thereafter (2) a pre-judgment writ of attachment. Jeffrey also propounded substantial discovery. Shortly thereafter, the defendants fired their lawyer and agreed to stipulate to having judgment entered against them for the full amount owed plus all pre-judgment interest and attorneys fees - for a total of about $588,000.

Of course, a judgment has value only if it can be enforced. After Jeffrey Cowan noticed a judgment debtor exam of the principal operative’s mother-in-law, the judgment debtors began making payments on the judgment.