A Croton-on-Hudson firm that finances litigants is suing a client who won a $1 million settlement but allegedly reneged on their deal.
Legal Funding III accused Salvador Vera and the Pillinger Miller Tarallo law firm, of Elmsford, of keeping its stake in a successful personal injury case.
“Despite the fact that the contract specifically states that the amount due to Legal Funding is $40,000, the defendants have failed and refused to pay,” according to a Dec. 9 complaint filed in Westchester Supreme Court.
Legal Funding was founded in 2006 by Benjamin Setareh, a personal injury lawyer, to advance money to litigants and, in effect, buy portions of potential legal victories. If the client wins a settlement or judgment, Legal Funding is paid a fee. If the client loses, Legal Funding gets nothing.
In 2008, Brooklyn resident Salvador Vera sued an elevator company for $5 million in Kings County Supreme Court, claiming that he was injured in an accident at a hotel near LaGuardia Airport.
In 2013, Vera requested financing from Legal Funding, according to the new lawsuit, and the firm agreed to advance $20,000 in exchange for $40,000 in a successful outcome.
Vera agreed that his attorney fees and then Legal Funding had to be paid, before he or anyone else could receive funds.
In 2015, Vera retained a new attorney, Emeka Nwokoro, the complaint states, and in 2022 Nwokoro joined the Pillinger law firm in Elmsford.
Pillinger settled the case this year for $1 million, according to the complaint.
Nwokoro allegedly notified Legal Funding that Pillinger, Vera and other parties had been paid from the settlement, but “Vera has refused to permit Pillinger to pay Legal Funding.”
Legal Funding accused Vera of breach of the covenant of good faith and fair dealing, and breach of contract. It accused Pillinger of failure to honor a lien.
It is asking the court to compel Vera and Pillinger to provide details of the settlement and to pay Legal Funding $40,000 and other costs.
Nwokoro was on leave and unable to respond to a message asking for his side of the story, and executive partner Marc H. Pillinger did not reply to an email.
Vera appears to be living in Allentown, Pennsylvania, according to a court record, but attempts to find contact information to ask for this side of the story were unsuccessful.
Legal Funding is represented by Yonkers attorney Raul Sloezen.
