Co. Had Right to Call 'Business' Loan Used By Poker-Playing Va. Lawyer
Nothing in the promissory note he signed for a $250,000 business loan said he couldn’t use the money to play poker, argued attorney Michael Melkersen.
But a federal district court in the Western District of New York court agreed with Counsel Financial Services that the loan company didn’t have to gamble on Melkersen or his Virginia-based law firm in this manner, reports the New York Law Journal in an article reprinted by New York Lawyer (reg. req.).
It granted the Buffalo, N.Y.-based company’s motion for summary judgment, adopting in a court order a magistrate judge’s opinion that Melkersen should be required to repay $275,000 in principal and interest, plus attorney fees and costs. The magistrate judge also found that Melkersen had no basis to pursue a breach of contract counterclaim, because he couldn’t establish either a clear promise by Counsel Financial Services to increase his $250,000 loan to $500,000 or damages caused by the loan company’s alleged breach of contract in calling the $250,000 loan.
The case, which was originally filed in state court, was removed to federal court on the basis of diversity jurisdiction. It was decided last week, under New York law.
Copies of the documents (PDF) are provided by the legal publication.
