120 Days to add NorVergence to Missouri Law Suit

Popular Leasing has asked the St. Louis Circuit Court to reconsider its ruling requiring that NorVergence be added as a defendant or to give it another two months to add NorVergence, according to Ronald J. Eisenberg of Schultz & Little L.L.P., Chesterfield, Missouri. His firm represents from 35 to 40 NorVergence lessees.

A three-judge panel in St. Louis County Circuit Court, Missouri, has ordered the addition of a bankrupt telecommunications company in New Jersey to more than $30 million “cost to lessor “ contract disputes.

Over 100 pending breach-of contract suits involving Norvergence leases were purchased by Popular Leasing USA of Baldwin, Missouri, a subsidiary of Banco Popular North America (BPNA.) They claim the lease payments should continue to be made. It appears a business decision to obtain as many “default judgments” as possible to help cover the write-offs from the losses they will sustain.

The defendants have many issues, stating NorVergence should also be named in the legal dispute, as the contracts are fraudulent. Missouri law in different than other states and several provisions have given the attorneys encouragement, while the latest ruling they consider a “set back.”

“The effect of a court order adding NorVergence on the industry of "buying and selling of contracts would be devastating," Popular Leasing USA Attorney Randal Scherck said in his original arguments, according to the St. Louis Post-Dispatch. " It sets a dangerous precedent."

The original ruling gives Popular Leasing USA 60 days to comply, and the reconsideration will add another 60 days, so whether the ruling is reconsidered or not, it will give them 120 days to add NorVergence to their lawsuit.

Popular Leasing's motion for reconsideration will be heard April 29.