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Client Successes

Schnader Obtains Defense Verdict Against Common-Law Fraud Allegations

04/28/2007

In June 2006, partner Robert J. Williams obtained a defense verdict in federal court in favor of our client, North Suburban Tree Service, Inc. (NSTS). NSTS had been accused of committing common-law fraud and violating the Pennsylvania Uniform Fraudulent Transfer Act in connection with a judgment that it had obtained in state court. The plaintiffs also alleged that NSTS furthered that fraud, as well as violated the United States Bankruptcy Code, by subsequently filing a bankruptcy proof of claim that was based upon the state court judgment. After a day-long bench trial, the Court expressly found that plaintiffs had failed to prove any fraud and that NSTS had acted in good faith. Schnader associate S. Elaine Diedrich, who was involved with the underlying state court judgment, also provided compelling testimony at the trial.