FREQUENTLY ASKED QUESTIONS (FAQ)

What is the tort litigation about and do I need to join?

The losses that the investors have (that's the money they don't get back directly from the liquidation of the real estate loan assets or the bankruptcy estate) will establish damages. The damages are the basis of your law suit.

Many investors do not know if they will receive their full investment. Most partnership investment / loans will not. Despite the trustee's report of evaluation, we believe there will be substantial losses with many partnerships. The trustee reported evaluations of 100% return on several properties, which may only return 30-50%, for example.

Who do we go after for the losses?

Without discussing legal strategy, our main focus is the firm of Raymond-James. RJ licensed Lapin & Wigginton to sell the real estate securities, and in our opinion was responsible for supervision of the firm. RJ audited L&W, and approved their advertising. Other defendants will be named later.

How do I know what law firm to chose?

The Combined Group's committee recommends Ron Franklin of Franklin, Cardwell & Jones as its pick of lawyers / firms that we feel is best suited for the group's needs. You are not in any way obligated to use this law firm, and you should make your own choice, if any, based on your particular needs.

Since there are so many investors and partnerships, the investigation time required of this case will be enormous. In order to accomplish the thousands of hours required of research, a large and dedicated law firm is needed. With Franklin, Cardwell & Jones ability to handle hundreds of clients, this is a big advantage over smaller law firms that have less recourses.

What will I pay to the lawyers?

All money received directly from the partnerships (through sales and liquidation) is yours to keep, and will be distributed on a prorata basis (percentage of each of your partnership investments). The estate (L&W's bankrupted company) will also send you money of what they recover according to the approved plan. Both of these payments are made to you without attorney contingency fees. If you become a client of Franklin, Cardwell & Jones, the money recovered related to the tort litigation law suits, judgments, settlements, etc, will be subject to a 37.5% contingency fee. If you have engaged a another firm, the fees may be different.

There are only two law firms that have been responsible for providing assistance to the Combined Group, Fulbright & Jaworski and Franklin, Cardwell & Jones.

I have other lawyers contacting me?

The Combined Group has made its recommendation of the law firm of Franklin, Cardwell & Jones. There is also the firm of Mehaffy & Weber (Beaumont, TX) that is well respected, and that is representing several investors. We will be working closely with this group, and have agreed to share information for our mutual benefit.

Please be aware that lawyers refer one another, and contract with clients only to assign the contracts for a commission. Please do not delay getting in contact with a lawyer of your choice.