- News & Publications
- Carter Ledyard Attorneys Vacate Confession of Judgment by Demonstrating Judgment Creditor's Fraud on the Court
Carter Ledyard Attorneys Vacate Confession of Judgment by Demonstrating Judgment Creditor's Fraud on the Court
On November 28, 2018, Carter Ledyard client Orion Mechanical, an HVAC business in upstate New York, successfully vacated a judgment by confession entered against it by Richmond Capital Group, a merchant cash advance funder, and the court directed Richmond Capital to pay restitution to Orion Mechanical. Orion Mechanical alleged that that Richmond Capital did not credit Orion Mechanical for payments made before the alleged default, falsely told Orion Mechanical that it would hold off on freezing Orion Mechanical’s bank accounts and settle all disputes if Orion Mechanical paid various additional amounts, fraudulently induced Orion Mechanical to enter into a settlement agreement under duress, and improperly submitted a judgment execution to a New York City marshal, causing the marshal to freeze Orion Mechanical’s bank accounts, prior to the judgment actually being entered.
In a sharply worded decision, the court wrote that “Plaintiff’s [Richmond Capital] actions in making false statements to the Court were meant to undermine the truth-seeking function of the judicial system and essentially made the Court an unwilling participant in its fraud, which the Court will not allow under any circumstances. Defendants have proven by clear and convincing evidence that Plaintiff acted knowingly to try and hinder the Court's adjudication of the case and the Defendants’ defense. Plaintiff repeatedly made false, sworn statements to the Court that resulted in the Court entering a Judgment for an inflated amount, extorted money from Defendants based on empty promises and heavily pressured Defendants to enter into a Settlement Agreement to prevent Defendants from shedding light on Plaintiff s deceitful acts. Therefore, based on the fraud committed on this Court by Plaintiff, the Judgment and Confession by Judgment are hereby vacated. Any lesser sanctions would not suffice to correct the offending behavior since Plaintiff’s fraud was central to the substantive issues in the case and Plaintiff’s lack of scruples in this case warrant this heavy sanction.”
Orion Mechanical was represented by Carter Ledyard attorneys Jacob H. Nemon and Jeffrey S. Boxer.
In their second client advisory on the Defend Trade Secrets Act of 2016 (DTSA), Jeff Boxer, Jack Griem, Alex Malyshev and Dylan Ruffi explore what it takes to plead a winning DTSA claim.
The firm is a proud partner of the Food Bank for New York City’s 2019 Justice Served Campaign.
PCG closed a multi-million dollar capital investment in Independent Financial Partners (IFP), facilitating IFP’s launch of a new online platform.
Carter Ledyard assisted Mr. Yongquan Bi, a client, change the control of NF Energy Saving Corporation (NASDAQ: NFEC) by reconstructing the composition of its Board of Directors.
Client Advisory: Jeff Boxer and Alex Malyshev discuss the Supreme Court's recent unanimous decision in Henry Schein, Inc. v. Archer & White Sales, Inc., and what it means for arbitration.
Alison Powers Herman was promoted from Counsel to Partner, and Mary Winchurch Brown from Associate to Counsel.
The OTC Markets Group provides price and liquidity information for roughly 10,000 over-the-counter securities.
The 1st Department Appellate Division upheld a Supreme Court decision to ban single-use Styrofoam containers in food service establishments in New York City.
Steve participated in the Annual Meeting of the American College of Environmental Lawyers in Jackson Hole, Wyoming to review environmental law developments.
A London-based co-living developer closed on the purchase of a $55 million dollar development site in Bushwick, Brooklyn. Land Use counsel was provided by Paul Proulx.
Judge Alison J. Nathan adopted a report that determined that the iconic artwork, "The Mechanism of Meaning" by Shusaku Arakawa, and associated intellectual property rights, must be litigated in the New York Surrogate’s…
Designed to showcase those exhibiting excellence in the practice of law, Super Lawyers® named forty Carter Ledyard attorneys to this year's list.
Fifteen attorneys across ten practice areas were named by Best Lawyers in their annual The Best Lawyers in America® rankings.
Jeff Boxer spoke with the New York Law Journal about the quality of services provided by a mid-sized law firm like Carter Ledyard.
Ms. Wallace has been a partner at CLM since 2017 and practices Art Law, Environmental Law and Litigation.