Legal Question in Civil Litigation in Nevada

Loan to a friend

About 7 months ago I ''lent'' a friend who told me he was about to be evicted $10,000. He told me that he would get the monty back to me in 2 weeks which was very important as I had taken the money out of my 401K and knew I would incur a penalty. We did not have anything written down as to this money and I have not gotten a penny back. I found out that he was involved bigtime gambling and also some kind of ''deal'' trying to get his own co. going. By the time I paid my taxes, the amount of the debt is now $14,000.00 and

I just don't know what to do. I have all of my cancelled checks that I wrote and he endorsed them. Could I sue him?

Thank you very much for any advice you can give me!


Asked on 6/11/03, 7:23 pm

1 Answer from Attorneys
Rick Williams Law Offices of Frederick D. (Rick) Williams, Chtd.

Re: Loan to a friend

You have an oral contract with your "friend," the gambler/dealmaker. Under normal circumstances it is enforceable under the law, but your case is not strong if he just chooses to deny it was a loan (he may call the checks evidence of gifts or repayment of money YOU owed HIM!). If you have any witnesses to the conversations between the two of you, that will help your claim, but you likely are in for a tough time collecting from this guy under the best of scenarios.

My best advice to you is don't ever again touch your 401k, especially to help out someone with the character of this fellow. Second, always have all agreements reduced to a writing. Even a "cocktail napkin" contract would put you in a better position than you are now. Third, never lend money to ANYONE without some strong collateral and the aforementioned contract clearly demonstrating that you are entitled to the collateral upon default.

I'm sorry you are in this uncomfortable position, and I am sure you are embarrassed to have been taken by this low-life. Unfortunately, I don't see a lot of hope of ever seeing those $14k again.

Read more
Answered on 6/23/03, 5:01 pm


Related Questions & Answers

More General Civil Litigation questions and answers in Nevada