According to reports Michael Avenatti lost and will be forced to pay $4.85 Million to a former law partner.
Breaking: Michael Avenatti hit by CA judge with $4.85 million personal judgment for unpaid debt to ex-colleague Jason Frank. His firm Eagan Avenatti facing possible eviction in trial today in OC.
— Michael Finnegan (@finneganLAT) October 22, 2018
Breaking: Eagan Avenatti to be evicted from its Newport Beach offices for nonpayment of 4 months rent. Landlord wins judgment at trial in Orange County.
— Michael Finnegan (@finneganLAT) October 22, 2018
Frank claimed that when he worked with Avenatti’s former firm Eagan Avenatti, he had an independent contractor arrangement that said he would receive 25% of the firm’s annual profits and 20% of his client’s fees. Frank said he was also supposed to get copies of the firm’s tax returns and other financial records. His lawsuit, filed in May of this year, alleged that the firm didn’t provide the records, misstated what their profits were, and didn’t pay him the amount due to him. In February 2016 he filed a demand to go to arbitration, and resigned from the firm months later.
The two sides eventually reached a settlement agreement, whereby the firm would pay Frank $4.85 million, but Frank sued when he did not receive any payment by the deadline set in the agreement.
At the time the lawsuit was filed, Avenatti told Law&Crime that it was “Frivolous and baseless.â€
Apparently the court did not agree.
