Ken Catanzarite, Esq. of the Catanzarite Law Corporation, Anaheim, California told Leasing News his firm has filed has filed an amended class action lawsuit seeking over $30 million on behalf of a Nationwide Class and a California citizens subclass related to what the plaintiffs allege to be the Brican Exhibeo Lease Fraud in the Brican America, Miami Beach, Florida matter. He states, "All of the leases contain the classic $1 end of lease bargain purchase clauses related to equipment fairly valued at no more than $3,500 and as such these are capital leases subject to both the California Finance Lenders Law and are also violate several states usury laws including California."
Tom McCurnin of Tom McCurnin Barton, Klugman & Oetting, Los Angeles, won a major victor regarding Commercial Money Center as it also was not licensed in the State of California. Catanzarite’s complaint asks for a determination that the Brican leases, both originated with and assigned to Professional Solutions, West Des Monies, Iowa, subsidiary PSFS, "are void or voidable, that the leases and related advertising and marketing agreements were misrepresented to plaintiffs and include usurious interest charges which entitles all plaintiffs to compensatory and punitive damages against all defendants, including PSFS."
"PSFS is a division of NCMIC FINANCE CORPORATION, an Iowa corporation, doing business as Professional Solutions Financial Services. PSFS is a member of NCMIC Group, Inc., a family of companies that offer a diversified portfolio of products to meet the insurance and financing needs of professionals including chiropractors, naturopaths, doctors, dentists and lawyers. The companies were started in 1946 with, what is described as, its “flagship operation”, NCMIC Insurance Company, licensed in all 50 states."
"On behalf of the California subclass the lawsuit asks a determination that the leases and related assignments are all void for failure to comply with the California Finance Lenders Law which plaintiffs allege required both PSFS and Brican to be licensed before entering into the leases and marketing agreements with California citizens, that such unlicensed activity and the failure to fully disclose the complete facts of the transaction results in the leases being void; in turn invalidates the floating forum selection clause; the pay come “hell or high water” clause; the California jury waiver; and related waiver clauses; and entitles each California citizen to a recovery of all money paid to PSFS, punitive damages and treble damages up to $10,000 per class member and attorneys’ fees and costs."
Brican America Lease (note #8: lessee pays personal property tax as owner as well as the many $1.00 purchase option clause:)
Brican America/Brican Financial Lawsuits
Disclosure: no position