In Texas Lawyer: FBFK’s Dana Campbell on Ruling in Favor of Physicians Against Nationwide Lender Balboa Capital in $11.5M Case
In a March 9, 2023 story in Texas Lawyer entitled “This Ruling in an $11.5M Case Could Affect a ‘Sea of Filings’ in Multiple States,” Litigation Reporter Adolfo Pesquera details the significant impact of this week’s ruling by Chief Judge Barbara Lynn of the U.S. District Court for the Northern District of Texas in favor of a group of physicians against Balboa Capital Corporation, a nationwide equipment finance lender. With interest and late fees, Balboa was seeking more than $11.5 million from the physicians.
The physicians, led by Dana Campbell of the FBFK Law Firm in partnership with the Hall Griffin Law Firm, cited essential terms consistently missing from the borrowers’ loan packages as grounds for the contracts being unenforceable. As the article points out, Judge Lynn rejected Balboa’s argument that the essential terms were included in Exhibit A1, which was incorporated into the loan agreements by reference, concluding that Exhibit A1 was missing, and “to the extent Exhibit A1 exists, its contents are unknown to the Court.”
According to Campbell, “We’re not aware of any other cases that have been decided against Balboa Capital based on the lack of essential terms but given that it was their practice to not include the invoice from its customer in the borrowers’ package of loan documents, this case could be the tip of the iceberg.”
“There is a sea of Balboa Capital filings on the docket daily, and only time will tell how many loans were made on that form of loan agreement and suffer from the same defect, he adds.”
To read the story in full on the Texas Lawyer, visit the link here.