The applicants sought to set aside two consent judgments obtained by Owens Wright LLP against its insolvent clients, Greenvilla, arguing abuse of process and fraudulent preference under the Assignments and Preferences Act.
The court found that Owens Wright obtained the judgments through abusive maneuvers, including failure to provide proper notice and ignoring a Notice of Intent to Defend from Greenvilla's receiver.
The court also found the transactions to be fraudulent preferences, citing numerous indicia of fraud and the non-arm's length relationship between Owens Wright and Greenvilla.
The judgments were declared null and void, and Owens Wright was ordered to repay the funds.