Colson Update: Two New Cases Filed
There were two new cases filed in the last week in federal court against Biloxi lawyer Stephen Colson. On August 20, 2009 Wachovia Bank filed this Complaint against Colson and Prestige Title. The suit is based on loans and credit lines that are in default. The amount sued for on each is as follows:
- Note 1: $292,355.36
- Loan 2: $720,088.09
- Loan 3: $494,321.01
Total: $1,506,764.40.
Eric Hatten with Burr Forman's Jackson office represents Wachovia. The fact that Colson defaulted on loans is not surprising, since his businesses were apparently shut down last fall.
The second case was a declaratory judgment action filed on August 24, 2009 by Aspen Insurance UK Limited against Prestige, Colson, Wachovia Bank and Lawyer's Title Insurance. Here is the Complaint, which Aspen filed in the Jackson Division instead of Gulfport for reasons that I can't identify. Aspen alleges that it issued a professional services liability policy to Prestige/ Colson in 2008 and there were misrepresentations in the application. As a result, Aspen claims that it has no duty to defend and indemnify Prestige/ Colson in their several legal actions. I don't know how this will turn out, but having the insurance company pay the freight for defending the lawsuits is usually a very big deal for a defendant. Carroll Warren and Parker of Jackson filed the complaint and are local counsel for Chicago lawyers.
