Legal Question in Business Law in California

I dissolved a real estate/mortgage company 2 years ago. About 6 months ago I get a letter from a lender telling me one of my loan officers brokered a loan for a client who committed fraud. It turns out they were correct and after contacting this client they admitted to photoshoping pay stubs. Fighting this claim until it was dismissed against me (without prejudice) cost me over 20,000 dollars. My question is, do I have a right to go after this client for having to defend myself for his fraudulent actions?


Asked on 11/25/10, 5:54 pm

4 Answers from Attorneys

Absolutly! Your attorney in the case should have cross-complained against the client in the orginal action you just got out of. In fact by not doing so he or she put your rights against the client at risk, though you should probably be OK with a separate action. If you would like to discuss this further I'd be happy to give you a no obligation initial consultation.

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Answered on 11/30/10, 6:24 pm
Joe Marman Law Office of Joseph Marman

It will cost you $20,000 to fight this case.

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Answered on 11/30/10, 6:54 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other two attorneys. Although the cost to proceed at this point is potentially high, that works both ways. The other side may be inclined to settle early if they are sued. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/01/10, 6:11 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

This situation may fall under a principle called "tort of another" and you may have greater rights than ordinarily to recover your legal costs. This is not my area of expertise, but if you were to use that phrase in making further inquiries or doing on-line research you might come up with some useful concepts.

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Answered on 12/02/10, 1:24 pm


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