Lender Says Pierce Bainbridge and Founder Owe Nearly $4 Million
Lender Karish Kapital claims that 25% of the firm's receivables "were to be paid daily" under a February agreement.
May 27, 2020 at 05:18 PM
3 minute read
The original version of this story was published on New York Law Journal
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Pierce Bainbridge Beck Price & Hecht and founder John Pierce are on the hook for nearly $4 million, according to a lender, who filed in court Wednesday a confession of judgment signed by Pierce.
In an affidavit of confession of judgment, filed in Manhattan Supreme Court, Pierce confirmed that he and the firm owed Karish Kapital for future receivables the lender purchased on Feb. 19. The value of the receivables was $3.75 million, according to Karish Kapital's court papers.
While 25% of the firm's receivables "were to be paid daily" to Karish, according to an agreement, Karish said it has not received any payment.
Due to Pierce and the firm's nonpayment, Karish filed the confession of judgment and asked the court for an additional $100,000 for attorney fees, as well as interest, totaling about $3.94 million.
Peirce did not immediately respond to a request for comment Wednesday. Ariel Bouskila, a partner at Berkovitch & Bouskila representing Karish, also didn't immediately respond to a message seeking comment.
The confession of judgment is the latest development in Pierce Bainbridge's relationship with Karish, which describes itself on social media as providing "fast" cash advances for small and midsize businesses. Days after Karish purchased the firm's receivables, it filed a lien on Feb. 25 on Pierce Bainbridge's assets, Pierce and John M Pierce Enterprises LLC.
In early March, a firm representative said a "preliminary investigation" revealed that Pierce accepted money from Karish Kapital for his personal use. The spokeswoman at the time said Pierce was on a leave of absence. The tumult raised further questions about the future of Pierce Bainbridge, which has garnered attention in recent years for its rapid growth and use of litigation funding. The firm has lately weathered a slew of partner departures. Pierce in April denied the firm was closing.
Slate Advance and West Coast Business Capital have also sued the firm this year, alleging in March suits that they bought law firm receivables but the firm and Pierce defaulted.
Read More
Ex-Managing Partner, 3 Others Leave Pierce Bainbridge to Start New Firm
Pierce Bainbridge Leader John Pierce Is On Leave Amid Financing Questions
Amid Partner Losses, Pierce Says 'Not Everyone' Can Be a SEAL
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