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As is true of many, from the president of the United States on down, who enjoy a good courtroom scrape, Highland Capital Management has won some and lost some. But the former hedge fund doesn’t sweat the latter, because it has an uncanny ability to avoid paying anything when it does lose. Unfortunately for James Dondero & co., two can play at that game, and its $351 million real-estate fraud payday from Credit Suisse just got a major trim by the Texas Supreme Court.

Credit Suisse Securities USA won’t have to pay a unit of hedge fund Highland Capital Management LP $287.5 million for a bungled land appraisal ahead of a 2007 Las Vegas real estate deal, but it can’t shake a jury’s $40 million fraud verdict, the Texas Supreme Court ruled Friday. The high court wiped out the $211 million in damages and $75 million in prejudgment interest awarded to highland subsidiary Claymore Holdings LLC after a Dallas County District Court bench trial, finding the award overcompensated Claymore for the fraudulent appraisal.

It must be so very annoying to be unable to collect when you’ve been ripped off.

Credit Suisse Wipes Out $288M Loss Over Flawed Appraisal [Law360]


By Chris Potter (Flickr: 3D Judges Gavel) [CC BY 2.0], via Wikimedia Commons

Highland Capital Founder Could Not Be Happier To Not Be A Hedge Fund Manager Anymore

No more dealing with the disrespectful idiots who made up Jim Dondero’s client base.


Credit Suisse: Law Designed To Protect Our Clients Actually Protects Us From Them

Hey, when you’re in Thomas Gottstein’s shoes, you’ll grasp at any disreputable straw you can find.


Prosecutors Pretty Sure You Can’t Lose Your Banks $10 Billion Legally

Which is bad news for Bill Hwang and the Archegos crew.

888 7th

Landlord Not Going To Let A Little Hedge Fund Meltdown Cost It $160,000

And the people who it cost $5.5 billion are gonna try to not repeat the experience.


Insolvent Millionaire Says Multi-Billion Dollar Hedge Fund Doesn’t Have $175 Million

Certainly not $175 million to pay aggrieved investors money they won at arbitration.


Phil Falcone Responds To Reporter Asking About Unpaid Bills That Nearly Sent Him To Jail With Defensive Retort About Offshore Accounts

This seems, at best, a questionable strategy for a person trying to demonstrate he’s not illegally screwing over his creditors.