WHITE PLAINS, N.Y. (Legal Newsline) — A California law firm is facing a suit over its alleged default of a $1.4 million loan from New York-based Legal Recovery Associates.
Legal Recovery Associates LLC filed a complaint March 22 in the U.S. District Court for the Southern District of New York against Brenes Law Group PC alleging breach of contract and other claims.
According to the complaint, Legal Recovery Associates loaned Brenes Law $1.4 million in six different transactions between December 2019 and October 2020. It alleges the note requires interest at the annual rate of 17.5% with interest accruing daily.
It further alleges the note included a payment date with past due amounts accruing at 18% annum. Legal Recovery claims Brenes Law did not respond to default notices and that according to the firm's website, it received products liability lawsuit settlements. Under the terms of the note, the suit says, a payment of any liability lawsuits "triggers a payment date."
Legal Recovery alleges Brenes is in breach of its contractual obligations and that the firm, in bad faith, did not disclose another one of its financing transactions while refusing to pay the principal and interest due.
Legal Recovery seeks monetary relief of more than $1.4 million, interest and all other just relief. It is represented by Andrew Solomon of Solomon & Cramer LLP in New York City.
U.S. District Court for the Southern District of New York case number 1:23-CV-02446-ER