Fast Trak Inv. Co., LLC v. Sax
United States District Court for the Northern District of California
May 11, 2018, Decided; May 11, 2018, Filed
Case No. 4:17-cv-00257-KAW
MOTION GRANTING PLAINTIFF'S MOTION FOR SUMMARY JUDGMENT
Re: Dkt. No. 59
On January 19, 2017, Plaintiff Fast Trak Investment Company, LLC filed this action against Defendants Richard P. Sax and the Law Offices of Richard Sax for breach of contract and breach of fiduciary duty in connection with purchase agreements of prospective, future-earned legal fees. Before the Court is Plaintiff's motion for summary judgment as to the first and third causes of action.
On May 3, 2018, the Court held a hearing, and, after careful consideration of the parties' arguments and moving papers, and for the reasons set forth below, the Court GRANTS Plaintiff's motion for summary judgment on the first and third causes of action.
Plaintiff Fast Trak is a Delaware limited liability [*2] company. When Fast Trak contracted with Defendant Richard Sax, its principal place of business was in New York. (Decl. of Robert Coppinger, "Coppinger Decl.," Dkt. No. 59-1 ¶ 2; Decl. of Kira A. Schlesinger, "Schlesinger Decl.," Dkt. No. 59-2 ¶¶ 2-3, Ex. 1.) Fast Trak is in the business of litigation funding, and it executed the contracts at its New York offices. (Coppinger Decl. ¶ 3.) Beginning in January 2013, Defendant Richard Sax, individually and on behalf of his law firm, entered into a series of Assignment, Sale, Springing Assignment & Equitable Lien Agreements with Fast Trak Investment Company, LLC. (Coppinger Decl. ¶ 4; Schlesinger Decl. ¶ 3, Ex. 1; Decl. of Richard Sax, "Sax Decl.," Dkt. No. 63 ¶ 3.). Through these agreements, Fast Trak purchased a portion of the prospective future proceeds from Sax's contingency fee litigation. (Coppinger Decl. ¶ 5; Schlesinger Decl. ¶3, Ex. 1; Sax Decl. ¶ 4.)
The primary underlying agreements were signed by clients of the Sax firm, and countersigned by Sax. (Schlesinger Decl. ¶ 3.) Defendant Sax signed both individually and as an authorized representative of Defendant Law Offices of Richard Sax. (Schlesinger Decl. ¶ 3, Ex. 1.) The Sax clients [*3] agreed to be liable to Fast Trak for a portion of their settlements if, and only if, certain conditions precedent occurred. On these contracts, Sax agreed to act as a fiduciary of Fast Trak to ensure that any proceeds due to Fast Trak were properly paid. (Schlesinger Decl. ¶ 4.) These proceeds would be paid upon resolution of the underlying litigation and receipt of the proceeds in each action. Under the Agreements, Fast Trak would only receive payment if the specified condition precedent occurred. If it did not, Fast Trak would lose its entire investment. (Schlesinger Decl. ¶ 4; Coppinger Decl. ¶ 8.)Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.
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2018 U.S. Dist. LEXIS 81045 *; 2018 WL 2183237
FAST TRAK INVESTMENT COMPANY, LLC, Plaintiff, v. RICHARD P SAX, et al., Defendants.
Subsequent History: Costs and fees proceeding at Fast Trak Inv. Co., LLC v. Sax, 2018 U.S. Dist. LEXIS 142105 (N.D. Cal., Aug. 21, 2018)
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