Pendergrass is Dead. Long Live Riverisland!

  The Pendergrass rule is dead. Parol evidence, even that at odds with the written terms of a contract, may be used to support claims of promissory fraud. However, where consumers have not read their contracts before signing them, they will have to present facts that tend to prove their failure to read the contracts was not negligent. Continue reading

Treble Damages For Obtaining a Loan By False Pretense

  A default judgment for obtaining a loan of $202,500 under false pretenses results in treble damages under Penal Code section 496. The case is Bell v. Feibush. Continue reading

Consumer Protection Bureau Files First Lawsuit Against Law Firm

   My interest was perked by this article in the WSJ today: “Consumer Protection Agency’s First Lawsuit Targets Law Firm”. It warms my heart when scam artists, particularly those who happen to trade on their law license, get their due. One of the principals involved in the alleged scam is California attorney Chance Gordon who operated a loan modification mill under several DBAs. State Bar proceedings, and hopefully criminal charges, will follow. A receiver has been appointed. If you have been a victim, contact the State Bar and Kent Kawakami, local counsel for the Consumer Protection Bureau, whose contact information is listed on the face page of the complaint.

UPDATE: On February 22, 2016 the State Bar Court recommended disbarment of Chance Gordon. The decision is here.