Wertheim LLC v. Omidvar

Currency loaned money at high interest rates to elderly artists who owned rights to receive royalty payments from music rights management companies. Wertheim persuaded artists to assign their royalty rights and any causes of action they might have against Currency. After Wertheim’s judgment against Currency had been vacated, the superior court in the interpleader proceedings released all deposited funds to Currency. Currency then moved to recoup from Wertheim the $238,615.45 in attorney fees that had been paid to the royalty payors, contending all or most of those entities’ fees were incurred as a result of Wertheim’s litigation tactics. In opposition to the motion, Wertheim contended the fees were incurred as a result of Currency’s litigation tactics. The superior court found no merit to either side's argument. Currency appeals the order denying its motion for attorney fees. The court concluded that equity does not require that Wertheim pay at least some of the fees where Wertheim had a colorable claim on the interpleaded funds in the form of a judgment, and Currency could have avoided the interpleader action by paying the judgment. Therefore, the trial court acted within its discretion in finding it “proper” for Currency to pay the attorney fees and the court affirmed the judgment. View "Wertheim LLC v. Omidvar" on Justia Law