The Cullen Law Firm PLLC obtained an important precedent-setting ruling establishing its clients’ rights to sue Pacific Financial Association, a leading seller of BMC – 85 Trusts, for breaching its fiduciary duties under the Trust by failing to pay claims promptly; failing to terminate the trust upon the aggregation of claims as required under the Trust; favoring certain beneficiaries to the detriment of others; and engaging in conflicts of interest. The case was filed as a class action, seeking damages of not less than $1,000,000.
The Court of Appeals reversed a lower court ruling that the lawsuit could not proceed under either Arizona statute or common law, concluding that such claims were perfectly entitled to proceed under common law. The Court of Appeals also reversed and vacated the lower court’s award of $85,000 for attorneys’ fees against the Plaintiffs. The ruling paves the way for the Plaintiffs to obtain discovery from Pacific Financial regarding allegations that its practices and procedures were negligent, and for the case to be tried on the merits.
TCLF attorney Daniel E. Cohen stated: “The court’s ruling sets an extremely important precedent in holding trustees like Pacific Financial accountable for losses incurred by small business truckers at the hands of brokers who have failed to pay their claims. The case also sends a clear message to other BMC-85 trustees throughout the country and carries out the ICC’s objective of protecting truckers against ‘dishonest and financially unstable middlemen in the transportation industry.’”
The Cullen Law Firm specializes in class action and complex litigation in state and federal courts throughout the United States. The Firm has obtained judgments and settlements for its clients in excess of $100,000,000.
Inquiries seeking further information should be directed to Daniel Cohen, Esq. (firstname.lastname@example.org), lead counsel for the Plaintiffs.