John Cole Gayle, Jr., Esq. & Ian Edward Vance, Esq.Protecting and fighting for consumer rights
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Charlie Falk Auto Wholesale, Inc. Pays Judgments
Posted on Apr 08, 2005Serna Laury v. Charlie Falk Auto Wholesale, Inc.; Stephanie Cruz v. Charlie Falk Auto Wholesale, Inc. In these cases, John Cole Gayle, Jr., of The Consumer Law Group, obtained two judgments against Charlie Falk Auto Wholesale, Inc. (“Falk”), a Virginia used-car dealer. The judgments amounted to approximately $90,000, which included punitive damages for fraud in the sale of automobiles. Falk refused to pay these judgments, claiming lack of funds and that the company was going out of business. The dealership then re-opened under another name. Mr. Gayle then applied to a fund established by the state of Virginia for compensation of our client’s compensatory damages and attorney fees. This fund is set up to partially compensate consumers when dealerships go out of business after judgment for fraud. The maximum recovery is $20,000 per case. On the eve of receiving an award from the fund, and after Mr. Gayle advised Falk that he was filing another suit for fraudulently transferring assets during litigation, Falk capitulated and paid a compromise settlement of $81,000 to satisfy these judgments.