- Free Consultation: (202) 448-5136 Tap Here To Call Us
On Deck Capital Lawsuits in Arlington General District Court
Last week, On Deck Capital continued its onslaught of lawsuits in Arlington General District Court.
On Deck Capital provides loans to small businesses. Its loan agreements contain “choice of venue” clauses providing for litigation in Arlington GDC. On Deck Capital also requires small business owners to personally guarantee its loans. So when On Deck sues a business, it also sues the business owner, personally.
On Deck Capital small business loans
A publicly traded company, On Deck Capital provides loans to small businesses with a minimum $100,000 annual revenue. Loans vary from $5,000 to several hundreds of thousands. Last week, the smallest judgment obtained was for $10,028 against Amazon Pet Market (as well as its owner), based in Hialeah, Florida. The largest judgment On Deck obtained last week was for $19,848 against 2Vapedx LLC (as well as, again, against its owner), based in Jersey City, New Jersey.
Over the past few months, On Deck has obtained hundreds of judgments simultaneously against both business and business owner.
Choice of venue: Arlington General District Court
The location of the business is irrelevant. If a business defaults on its loan with On Deck, then the litigation will take place in the General District Court of Arlington, Virginia. On Deck requires this as part of its loan agreement. “Choice of venue” contract provisions predetermine where legal proceedings will take place. On Deck also applies its choice of venue clause to arbitration.
On Deck is able to obtain a very high percentage of default judgments in the lawsuits it files because the business owners do not live anywhere near the Arlington General District Court. Once On Deck obtains a judgment in Virginia, it hires local counsel in the jurisdiction near the defendant, domesticates the judgment, and attempts collection directly against the owner. Often, the business has already gone under; the business owner remains the only entity against which to enforce its judgment.
Personal guarantee of business loans
Typically, business owners are not liable for the debts of their businesses. On Deck Capital, however, checks the business owner’s personal credit rating before it decides to extend credit, and they require a personal guarantee on every loan they make. On Deck subsequently names individual business owners as defendants in every lawsuit it files. The business owner’s personal liability on that loan gives rise to concurrent liability for business and business owner alike.
Lawsuits in Arlington General District Court
Lawsuits in Arlington General District Court are initiated by the filing of a warrant in debt. Once served, you must take action. Virginia general district court have very short timelines.
You cannot simply ignore a creditor because your business has closed, especially if you have personally guaranteed a business loan. You must mount a defense. Do not allow a default judgment to be entered simply because the business is going under or because you live far away from the choice of venue. Creditors like On Deck will use a default judgment against you. Personally.
Do not file anything with the court or talk to opposing counsel before you talk to an attorney. Lee Legal provides debt defense to clients facing lawsuits in Arlington General District Court and Alexandria General District Court. We can be reached at (202) 448-5136.
They Called. They're Glad They Did.
Brian Lee from Lee Legal was an amazing attorney to work with. He took his time, reviewed my documents and we discussed my situation thoroughly. He explained the process and my options as well as gave his recommendation. Not only did he assist, but he ensured that I knew this...
I was very nervous and scared about going through this process. But Brian was very knowledgeable and helped me through it. I was notified about any and all updates to my case and he was very responsive when I had questions regarding any concerns I had. Although a bit nerve...
Brian provided me with a very detailed analysis about my potential case after our first consultation. He promptly responded to all my complex questions, especially navigating student loans and some tax discussions. He is very professional and experienced at what he does, I would...
I've had the pleasure of working alongside Brian V. Lee for several years, and I can say without hesitation that he is one of the most knowledgeable bankruptcy attorneys in the DMV area. Brian's command of Chapter 7, 11, and 13 practice is exceptional, and his clients in the DC...
Brian has the amazing talent of taking complicated legal matters and distilling them down to seamless, frictionless resolutions. He is a phenomenal problem solver and a trusted advisor.
Brian is both warm and professional. He helped me navigate a financial issue that I had not been looking forward to working on and he made the entire experience non-stressful, receiving a lot of anxiety I had around the matter. He is straight forward and a fantastic problem...
I had the opportunity to work with Brian at a time when I was challenged by a professional setback and forced with the challenge of making some very difficult legal decisions. Additionally, I worked with him again as I was dealing with some financial issues pertaining to my...
Still several years from Public Service Student Loan Forgiveness and saddled with significant student loan payments in proportion to my income, I came to Lee Legal to explore the bankruptcy path. Through his counsel, Brian took the fear out of the process and helped me to...
