Pierce v. McMullen

In 2009, Joseph Pierce filed this action against Steven McMullen and Highland Financial, LLC, seeking damages for various violations of the Idaho Consumer Protection Act and for breach of contract, all based upon an alleged scam in which defendants represented that they could protect Pierce from losing his equity in real property that was facing foreclosure. He alleged that the defendants obtained title to his real property pursuant to a promise to assume the loans secured by the property, to market and sell the property, and to pay him at least $50,000 or more from the sale proceeds, depending upon the sale price. He claimed that he deeded the property to defendants, they failed to make the payments on the loans, and that the property was sold at a foreclosure sale. The complaint also alleged that Highland Financial was the alter ego of McMullen. Only McMullen appeared in the action, but he did not deny the allegations of wrongdoing in the complaint. When McMullen failed to appear at the trial, the district court ordered that he was in default, that Pierce prevailed on his complaint, and that he could present evidence of his damages. Pierce did so, but the district court later dismissed the action on the ground that Mr. Pierce had failed to prove liability. Finding that decision was made in error, the Supreme Court reversed the district court's decision and remanded the case for further proceedings. View "Pierce v. McMullen" on Justia Law