News – Michael Molenda
Judgment Against StratCap
Mike Molenda recently helped a client obtain a significant decision against StratCap Investments, Inc. (“StratCap”), a Canadian company that purchases structured settlements from annuity recipients at a discounted rate.
Mike’s client sold his annuity to StratCap and was told he would have no obligation to pay any attorneys’ fees for the transaction. However, StratCap made arrangements for an attorney (called an “Independent Professional Advisor”) to meet with Mike’s client to have him sign documents. Although the documents reflected that no attorneys’ fees were owed, StratCap deducted fees for the attorneys’ services before making the lump sum payment to Mike’s client.
Mike commenced an action against StratCap to recover the improperly deducted fees. Mike also asked the Court to find that StratCap was obligated to pay Mike’s fees for the cost of pursuing the action.
The Court ruled for Mike’s client, granting him a judgment against StratCap for the improperly deducted fees and for Mike’s attorneys’ fees, which were incurred to hold StratCap accountable for its actions.