Supreme Court Victory in Usury Appeal
May 14, 2010On May 14, 2010, the Texas Supreme Court let stand a $4 million victory obtained by Beck Redden in the Court of Appeals. 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. But the Court of Appeals threw out the finding of the agency. This ruling eliminated the $4 million judgment against the Neubaums. Although the plaintiff appealed to the Supreme Court, the Supreme Court left the win intact.
Beck Redden partner David Gunn gave the oral argument in the Court of Appeals and wrote the briefing with the aid of his colleague Erin Huber. Both of them also collaborated with trial attorneys, Brent Stanfield and Christopher Lowman.