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In re Transact, Inc., Case No.: 8:07-11443-ES

Shulman Bastian Friedman & Bui LLP obtained a significant victory at trial representing the Chapter 7 trustee for the bankruptcy estate of In re Transact, Inc., Case No. 8:07-11443-ES, pending in the United States Bankruptcy Court for the Central District of California, Santa Ana division. Partner and lead counsel for the bankruptcy estate, Robert Huttenhoff, prevailed following a seven (7) day bench trial. The Bankruptcy Court awarded the bankruptcy estate a judgment totaling $1,395,000, including pre-judgment interest. The Bankruptcy Court also awarded reasonable attorney’s fees which remain pending and will increase the total award. The underlying litigation involved allegations of fraud and intentional breach of contracts related to financing arrangements with private lenders in connection with the development of a high-end custom home in Corona Del Mar. The Bankruptcy Court concluded that the private lenders had inexcusably breached the contracts and the Estate was entitled to a substantial monetary award for the resulting damage. John M. Wolfe, Chapter 7 Trustee for the bankruptcy estate, was very pleased with the result, noting “excellent result after some extremely contentious litigation.”