General Electric Capital has also sued Gary, who is known to for enjoying pricey cars and jets, over the default of a loan for financing his Boeing 737. That case is pending before a Manhattan federal district court. Gary's plane, called the “Wings of Justice II” is supposed to have a bedroom, kitchen, leather seats, and an 18-karat-gold sink.
In July, Gary told Reuters in an interview, “The last two to three years have been just tough economic times for the world, and our law firm is no exception … We've been working our butts off to weather the storm.” At least seven partners have left Gary's small law firm over the last two years after creditors of the firm began filing lawsuits.
LFG National Capital, which is possibly Gary's biggest creditor, filed the lawsuit in 2011, claiming that Gary's firm had failed to pay the litigation finance loans properly since 2009. The loans had been taken to finance the contingency-fee cases of the firm, and Gary and his partner, Lorenzo Williams had personally guaranteed the loans.
Though Gary and his partner argued that the litigation finance loans had excessively high interest rates, the court dismissed their arguments and Gary had admitted in July on court papers that he had “no good faith defense” any more against claiming that his firm did not breach the loan arguments.
Gary is known for several high profile verdicts including a $500 million verdict against the Lowewen Group, a $240 million verdict against Walt Disney and others. In 2010, he acted as co-counsel in the $55 settlement in a class action settlement with a unit of Amway Corp. He is involved in several high-profile cases across the country including lawsuits against the National Football League.
The case is LFG National Capital v. Gary, Williams, Finney, Lewis, Watson, and Sperando P.L., et al, U.S. District Court for the Northern District of New York, No. 12-cv-00446
