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Court of Appeals Reverses! Trial Court Erred by Rescinding Agreement

Court of Appeals Reverses! Trial Court Erred by Rescinding Agreement

Domina Law Group pc llo’s real estate investor client learned an Omaha property owner’s asset was about to be sold by the County Sheriff to collect a judgment. The property had equity, and it seemed clear the foreclosure should be avoided.

But, the judgment against the property and its owner could not be satisfied. Credit constraints, and cash flow limitations, made refinancing impossible. An arrangement was agreed upon for Domina Law Group pc llo’s client to purchase the property, lease it back to the owner, and provide the owner with options to buy the property back down the road.

Problems developed in the landlord relationship. Rents were not timely paid. Collection efforts seemed at hand. Then the property owner sued, in District Court, seeking to rescind the entire arrangement with the lender who helped salvage the owner’s property. The owner claimed to have been duped to believe the purchase, lease transaction was a loan, and not a sale.

The Douglas County District Court agreed, but a unanimous panel of the Nebraska Court of Appeals reversed. The Appeals Court agreed with David Domina’s argument that the overwhelming evidence proved complete awareness and understanding of the transaction, no fraud, no reliance, and no damages to the homeowner.

“Our client made a genuine effort to reform its business methods after losing a case before our representation commenced. We thought those methods proved that the transaction in this case was absolutely legitimate, and are gratified the Court of Appeals agreed,” Domina said.

The Appellate Court victory ends, on a favorable note, a series of lawsuits initiated against Domina Law Group pc llo’s client before the firm became involved in the company’s representation. A significant change in the client’s fortunes occurred when DLGpc took over. “We settled cases that needed to be resolved, and tried the cases that presented legitimate, valid issues, like this one,” Domina said. “This is how conscientious people involved in litigation should always handle matters.”David A. Domina

Domina Law Group pc llo is a firm of trial lawyers. We specialize in complex litigation on a national basis. Our lawyers are ethical, aggressive, and committed to providing spirit and vitality to the judicial system and our client’s legal rights.

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