AFX Capital Markets Limited, AFX Capital US Corporation and STO Super Trading Online (AFX defendants) are not having the best of experiences at the moment at all. They are on the verge of another loss of one of their attorneys. This is coming up on the heels of White and Williams LLP (WW) filing a motion with the New York Eastern Bankruptcy Court. The aim was to enter for withdrawal as a legal counsel.
This is not looking good for AFX because alongside its defendants, the entity is presently engaged in a legal tussle with Esther DuVal. The latter is the Chapter 11 Trustee of the collectively-overseen estates of Gallant Capital Markets and Avenica, Inc. The properties are domiciled in the United States of America.
WW took things a step further when on the 22nd of November, it filed a motion with the New York Court. In the motion, as seen, the law venture went all out. It insisted that there was no basis for cooperation anymore and that there were now irreconcilable differences that had erupted between WW itself on one hand and the defendants on the other hand.
The law enterprise clarified that not even the constant requests for the broker to honor its outstanding obligations made AFX fulfill its own side of the deal. The outstanding payments have to do with legal services and costs that have been offered. In addition to not offering payment to its legal counsel, AFX was accused of not responding to all communication platforms that WW tried to use to reach out. These include phone calls, electronic mails and other forms of communication.
WW says it has no idea of the present condition of the defendants. However, they state that they know that the defendants in question have been embroiled in another case in Cyprus. It also stated that it knows of the case involving one of their partners in the United Kingdom. As a result, WW said it is not sure if the defendants are going to be helpful to the firm.
More Legal Problems for AFX
WW is actually not the first legal partner to storm out of the relationship with AFX. As a matter of fact, something very similar had happened before in 2018. Then, the former legal representatives of AFX also decided to leave, the name was Foley and Lardner LLP. They also complained that they had to leave because AFX refused to pay for the remarkable legal services that they had offered. In a similar vein, they also complained that AFX did not respond to communication.
But that is not even all for AFX. Apart from the two legal counsels that have been listed earlier, there were other parties that also had an ax to grind with AFX. DuVal also leveled allegations against AFX saying that it acted in bad faith. DuVal too is seeking redress and wants to be compensated. AFX is accused of failing to issue payment on an agreement that was to the tune of $830,000.