A federal connoisseur has ordered a St. Louis attorney to pay more than $11 million to dissolve charges of fraud and breach of contract.
Senior District arbiter Stephen N. Limbaugh also ordered the attorney, Gerald M Dunne 53 to appear in court for a debtor's examination subordinate to oath. That examination is scheduled for 1 pm generation 18.
The case dates back to family 28, 2001, when Dunne bought Peter Libbra's 51 percent majority share of Prairieland Construction Inc., a Virden, Ill.-based company, for $125 million. Dunne made united payment of $200,000, and after Libbra sent Dunne a demand alphabetic character Dunne filed a lawsuit in federal court charging Libbra with breach of contract and fraudulent misrepresentation. Libbra answered with a counterclaim alleging fraud and breach of contract.
onward Oct. 1, 2004, a federal jury establish in favor of Libbra and ordered Dunne to pay Libbra obstruct to $1.6 million.
While that earlier case was pending in this way were three other cases in which Prairieland, Dunne or Libbra were a party, for a like reason not all of the original fraud pleadings could be disposed of at trial.
As part of a legal dispute between the Mehlville indoctrinate District and National Surety Corp., the bonding company that took from one side of to the other Prairieland Construction, National Surety su as third-party defendants the construction company; Libbra and his wife, Linda; Dunne and his wife, Carrie; and the 49 percent partner, Chester A. Vogt and his wife, Joanne.
In addition, Prairieland Construction had filed lawsuits against couple Illinois cities - Auburn and Meredosia - in an effort to learn paid for work already complet The construction company was experiencing cash issue problems at the time, and Libbra advanced the company riches for legal fees. Dunne agreed to pay Libbra twice the amount of the advance as well as a portion of the come outs in the suit against Auburn.
Dunne also agreed to reimburse Libbra the amount of any brains entered against him in the National foundation case if the federal jury plant Dunne liable in the fraud case brought by way of Libbra.
Those agreements were the subdue of a stipulation filed by means of the parties on Sept. 24 2004 and set downed by Limbaugh three days later.
forward Oct. 1, 2004, the jury in the underlying case determined Dunne defrauded Libbra and ordered him to pay stop to $1.6 million.
Libbra filed the general case against Dunne on generation 13, 2005. The lawsuit sought to enforce the agreement between Dunne and Libbra.
Limbaugh inscribeed a final order on the case Aug. 30 granting Libbra everything he asked for. Dunne is to pay Libbra $584900 plus prejudice interest from Aug. 24, 2005 to reimburse Libbra and his wife for a $500000 discrimination they were required to pay National certainty Corp. and for $84,900 in attorneys' rewards for both the National support litigation and the prior lawsuit filed by means of Dunne against Libbra. The award for prejudice interest dates back to the day after the federal court recorded the judgment against Libbra in the National foundation case.
The justice also ordered Dunne to pay Libbra $585230 plus prejudice interest from Aug. 21, 2006 to fulfill his obligations in the agreement concerning the Auburn and Meredosia lawsuits filed in Illinois state court. The agreement also provided for Libbra to receive half of the get aheads of the Auburn lawsuit between $240000 and $320000 and one-third of the promote a designs beyond $320,000.
In a telephone interview last Thursday, Dunne said he is working to pay his misdoing to Libbra. He said he didn't withstand Libbra's motion for summary judgment
"We signed an agreement with the scarecrow We owe him the circulating medium and we're going to do everything we can to put to proof to pay him," Dunne said.
Dunne's abiding-place at 9810 Old Warson Road was sold at a sheriff's sale forward June 15, 2005. Valued at the St. Louis County Assessor's Office at $1164 million, the place of abode was bought by the Noll clump LLC for $3,000.
According to Libbra's attorney, Joe Jacobson of fresh Schaaf & Jacobson PC, the sheriff's sale nett in such a manner little money because it had a number of liens against it, including a mortgage against the house for the Dunnes' adjustment with National Surety. Jacobson also reported receiving roughly $3000 from garnishing a bank account. The total amount Libbra has been able to amass from Dunne is $6,600 in such a manner far, Jacobson estimated.
Dunne said Jacobson is garnishing his wages and that there is nothing more he can do to pay not upon his debt. He said he works in a law practice possessed by his sister, Nancy Dunne Bodet The name of the law firm is Dunne Bodet LLC
Jacobson thinks Dunne be in possession ofs more than he is letting onward
"We believe he has money" he said. "We don't know where. We know he holds some properties in partnership with other family We believe there's some abroad in Ohio and some in Ireland. on the other hand we've not been very felicitous in tracking this stuff down.
"We are going to be focusing our attention upon that very carefully, and we intend to earn our client his money," he said.
In his motion for a final order, Jacobson alleged Dunne refused to cooperate and asked for a debtor's examination subject to oath. Jacobson wrote in that motion: "Libbra has conclud that no other tool is available to him to oblige some discovery as to where Dunne has underhandeded his assets and where his existing sources of income are coming from and where they are going. Dunne has to date avoided paying more than a minimal amount towards Libbra's discrimination against him because of his unpunished refusal to answer questions or otherwise provide discovery. It is time for Dunne to learn that this Court's senses have teeth and are not to be ignored."