Medcap Credit Co., LLC, Dale Papworth v. DVI Business Credit Inc., Mark Idzerda, Tony Turek, Cynthia Cohen
Published: Feb. 18, 2004 | Result Date: Jul. 21, 2003 | Filing Date: Jan. 1, 1900 |Case number: 00CC03791 Bench Decision – $20,850,000
Judge
Court
Orange Superior
Attorneys
Plaintiff
Jeffrey B. Gardner
(Barry Gardner & Kincannon APC)
Defendant
Facts
The plaintiffs/cross-defendants were Medcap Credit Co. and Dale Papworth. The defendants were DVI Business Credit Inc. (DVIBC), Mark Idzerda, Tony Turek, and Cynthia Cohen. The cross-complainant was DVIBC. DVIBC extended Medcap a line of credit, which Medcap used to purchase accounts receivable from health care providers. Medcap was allowed to borrow up to 80 percent of its borrowing base, which consisted of the current accounts receivable it had purchased. DVIBC claimed that Papworth fraudulently adjusted the borrowing base to allow his company to borrow more money.
Settlement Discussions
Papworth did not make a settlement offer.
Damages
$17.9 million in contractual damages against Medcap; $2.2 million fraud damages against Papworth; $750,000 punitive damages against Papworth.
For reprint rights or to order a copy of your photo:
Email
jeremy@reprintpros.com
for prices.
Direct dial: 949-702-5390