Heir Forced to Repay Lender for Litigation Funding
Hunt Petroleum heir Albert Hill III was embroiled in a dispute with PBL Multi-Strategy Fund (“PBL”), a creditor. PBL sought a portion of Hill’s settlement proceeds from litigation involving a family dispute over trusts after Hill’s company defaulted on a Note that Hill had guaranteed. Hill counterclaimed for breach of contract. PBL and Hill settled their claims against each other, contingent on the court’s allocating some of the litigation’s settlement proceeds to PBL. However, some years later, there were no proceeds left, and PBL obtained a judgment against Hill. The Fifth Circuit sided with PBL affirming the investment company’s $8.6 million judgment to pay back the credit note advanced to fund trust dispute litigation involving Hill’s family.