Victory in a Multimillion Usury Appeal
January 4, 2010On Dec. 31, 2009, the Beaumont Court of Appeals issued a unanimous decision that threw out a multimillion dollar usury judgment. The case (Neubaum v. Buck Glove Company) arose out of some business transactions that the Neubaums characterized as a Ponzi scheme. After a Montgomery County jury found that the Neubaums had hired an agent who engaged in usurious transactions, the trial court awarded about a $4 million judgment against them. Beck Redden partner David Gunn gave the oral argument and wrote the briefing with the aid of his colleague Erin Huber. Both of them also collaborated with the trial attorneys, Brent Stanfield and Christopher Lowman. The Beaumont Court of Appeals threw out the finding of the agency. As a result, the $4 million judgment against the Neubaums was eliminated. (Opinion attached)