Second Circuit Court: Attorney Fees Collectible Overseas

Judgment against California attorney Harold Sullivan charged with fraud was affirmed today by the Second District Court of Appeals.

Peter Laycock, a California resident represented by Sullivan, sued foreign company Java Oil for personal injury compensation through the Supreme Court of Gibraltar.

The Gibraltar trial court dismissed the case, ordering Laycock to pay for Java Oil's litigation costs. On finding that Sullivan assisted Laycock in presenting false evidence, the court amended their order, requiring Sullivan personally pay the entire cost of defensive litigation (just over $3 Million).

An angered Java pressed the attack, suing Sullivan under the Uniform Foreign Money Judgments Recognition Act (UFMJRA) in a Los Angeles Superior Court. The question in the case is whether or not the judgment constitutes a penalty. If it does, then the UFMJRA wouldn't apply.

The Los Angeles Court found Sullivan liable. Sullivan appealed to the Second District Court, which ruled today. The Court, in an expected but controversial decision, ruled in favor of Java, arguing that the holding against Sullivan was not a fine or penalty but rather a substantive claim of damages. The ruling has broad implications for overseas fraud law here at home.