Intelligent Highway Solutions, Inc. v. TCA Global Credit Master Fund, L.P. v. Cresent Construction Company, Inc., Philip Kirkland, William D. Jones, Broward County Circuit Court, Case No. CACE 18-000934 (02)
On April 30, 2018, the defaulted borrower (Intelligent Solutions), an Elk Grove, California company that services and provides energy-saving technology for intelligent highway systems, filed a pre-emptive lawsuit against the Master Fund Intelligent Highway Solutions vs. TCA Global Credit Master Fund, L.P., 2017-00219822-CU-FR (Sac. Cty Sup. Ct., CA), asserting claims for unlicensed lending under California among other claims. The borrower alleged that the Master Fund failed to provide advisory services (for which it agreed to pay $1.5 million) in connection with the loan funds it received ($631,855). The court dismissed the California action due to a forum selection clause in the loan agreements. The borrower filed an identical action in Florida. The Master Fund moved to dismiss the borrower’s claims, and filed counter and cross claims against the borrower, co-borrower and guarantors, seeking to recover for breach of the credit agreement, revolving note, and guaranties. The total loan amount was $631,000, but the borrowers also owed $1.5 million in advisory services fees, and interest. After motion practice, the borrower abandoned its affirmative claims for relief, filed its answer, and borrower’s counsel withdrew from the case. Borrowers have failed to obtain new counsel, in violation of the court’s order. Prior to the Receiver’s appointment, the trial court stayed the proceedings to permit the parties to negotiate a settlement. Borrower has since reached out to counsel for the Receiver, who is initiating settlement negotiations. If those negotiations fail or are delayed, the Receiver intends to re-open the proceedings to obtain outstanding discovery and move for summary judgment, as the pleadings are closed. GJB is also investigating the borrower’s and guarantor’s assets in order to advise the Receiver on settlement and future collection efforts.
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