Kennedy Funding Lawsuits: A Look at Two Key Cases
Kennedy Funding, a prominent private lender specializing in land loans, has been involved in several lawsuits throughout its history. Here, we’ll delve into two significant cases involving the company:
1. Shelton v. Kennedy Funding Inc (2010)
Short Summary: Virgil Shelton, owner of Rest in Peace Cemetery in Arkansas, sued Kennedy Funding for breach of contract and fraud after a deal to sell the cemetery went sour.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| August 2010 | Shelton v. Kennedy Funding Inc | 631 F.3d 806 (8th Cir. 2010) | United States Court of Appeals for the Eighth Circuit | Virgil Shelton sued Kennedy Funding for breach of contract and fraud after a deal to sell his cemetery fell through. The jury awarded Shelton $1.675 million, but the verdict was reduced on appeal to $675,000 |
Details of the Lawsuit:
- Shelton alleged that Kennedy Funding made false promises about the loan amount and terms, ultimately leading him to reject other offers and lose out on a better deal.
- Kennedy Funding argued there was no breach of contract and that Shelton had misrepresented the cemetery’s financial condition.
- The jury sided with Shelton on the breach of contract claim but not on all aspects of the fraud claim.
- The appeals court upheld the jury’s verdict on the breach of contract but reduced the damages awarded.
2. Kennedy Funding Inc. v. Greenwich Landing, LLC (2013)
Short Summary: Kennedy Funding initiated a foreclosure action against Greenwich Landing, LLC, and Mahmoud Wahba after they defaulted on a mortgage loan.
| Complete Date | Case | Citation | Court | Short Summary |
|---|---|---|---|---|
| December 2010 (Filed), March 2013 (Appellate Decision) | Kennedy Funding Inc. v. Greenwich Landing, LLC | 135 Conn. App. 302 (2013) | Connecticut Court of Appeals | Kennedy Funding sued Greenwich Landing, LLC, and Mahmoud Wahba for strict foreclosure of a mortgage after they defaulted on the loan. The defendants challenged Kennedy Funding’s standing to bring the lawsuit. |
Details of the Lawsuit:
- Greenwich Landing and Wahba argued that Kennedy Funding lacked standing to foreclose because they were not the legal owner of the debt at the time the lawsuit was filed.
- Kennedy Funding contended that they were acting as an agent for the undisclosed principal who owned the debt.
- The trial court sided with Kennedy Funding, finding that general agency principles allowed them to pursue the foreclosure action.
- The defendants appealed, but the Connecticut Court of Appeals affirmed the lower court’s decision.
Additional Points to Consider:
- These are just two examples of lawsuits involving Kennedy Funding. There may be other legal cases involving the company that are not covered here.
- The information presented is based on publicly available court documents and may not reflect the entire picture of each case.
- If you are interested in learning more about specific lawsuits involving Kennedy Funding, it is recommended to consult with a legal professional.
Please note: This table summarizes the key details of the two lawsuits but does not include all the information from the previous section.
