Court of Appeal Affirms New Trial Victory, Turning $500K Liability into $300K Recovery for RRB Client

in News by Stephen Raucher

 

In a long-running partnership dispute, RRB’s client faced allegations of improperly diverting distributions to satisfy a pre-existing debt owed by the plaintiffs. Initially, the trial court ruled in favor of the plaintiffs, ordering RRB’s client to pay over $500,000 in principal, interest, and attorney’s fees. However, on retrial, RRB successfully demonstrated that the client was entitled to interest on the pre-existing debt, revealing that, when properly accounted for, the plaintiffs were actually the ones who still owed money.

 

The plaintiffs appealed, but the Court of Appeal affirmed the ruling in favor of RRB’s client, finding that:

 

– The amount owed by the plaintiffs was certain or capable of being made certain based on information known to all parties, creating a clear entitlement to interest.

 

– The plaintiffs were not entitled to offset distributions against the total amount of the pre-existing debt.

 

This appellate victory completely reversed the financial outcome for RRB’s client, transforming what had initially been a significant liability into a $300,000 recovery.