Legal Recovery v. Eng CA1/2

BACKGROUND

On October 27, 2014, Plaintiff Legal Recovery, LLC initiated this action against Eng by filing a verified complaint for breach of contract alleging non-payment of four promissory notes that had been assigned to plaintiff for collection, and seeking as damages approximately $1.4 million in principal and accrued interest. Each note was payable on demand. The verified complaint alleged in paragraph ten the original lenders “had demanded payment on the notes, but Eng has not paid any sum on the principles or interests [sic]” that had accrued, and that the notes “are now due and payable in full.” In his verified answer, Eng responded to paragraph ten as follows: “Defendant denies the

1 allegations set forth in paragraph 10 on the basis that the promissory notes are fraudulent.” Thereafter, plaintiff moved for summary judgment. Eng, representing himself, opposed the motion on four grounds: he contended the notes were fraudulent and he had never entered into them, the action was barred by the statute of limitations, the debt had been discharged by the bankruptcy of his co-defendant,1 and ethical violations by plaintiff’s counsel, who formerly represented Eng too, precluded…