On December 12, 2008, David H. Rich and J. Owen Todd obtained a $20+ million verdict in a commercial dispute concerning a series of loans made by an affiliate of Realty Financial Partners, a Wellesley based-private equity firm.
The loans were advanced in connection with a real estate development project involving the construction of an 18-hole golf course and a 178-lot residential subdivision in Dracut, Massachusetts. After a nine-day jury-waived trial held before the Honorable Ralph Gants of the Massachusetts Superior Court's Business Litigation Session, the Court found in favor of Todd & Weld's clients, Realty Financial Partners on all counts of its complaint and ruled against Meadow Creek, LLC and its principal, Frederick Fahey, on their counterclaim. The Court's verdict included an award to Realty Financial Partners' affiliate of $20,314.152.13 in compensatory damages plus an award of attorneys' fees. The Court's award also held Mr. Fahey personally liable for $674,794.02 of the verdict, plus an award of attorneys' fees. The Court's decision specifically rejected Meadow Creek, LLC's multi-million dollar “lender liability,” usury and fraud-based counterclaims, holding that the actions of Realty Financial Partners were lawful, appropriate and justified.
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