Corr Cronin successfully defended AHP Servicing, LLC, a leading buyer and seller of large portfolios of mortgage loans and distressed debt, in a high-stakes bench trial before Judge Samuel Chung of the Superior Court for King County, Washington.

The dispute arose after AHP purchased a portfolio of more than 50,000 state court judgments from entities controlled by Oak Harbor Capital, a distressed debt buyer run by William Weinstein. The $12 million purchase was financed by a promissory note in Oak Harbor’s favor, with the agreement providing AHP the right to “put back” the assets and erase the debt in December 2024.

Oak Harbor sued AHP for breach of contract, conversion, and turnover of assets, seeking nearly $13 million in damages. Corr Cronin defended AHP on multiple grounds, including that Oak Harbor used sham nominee entities to inflate the portfolio’s price and that no principal or interest was due beyond meager recoveries. Crucially, AHP had exercised its contractual right to return the portfolio in December 2024—an action Oak Harbor refused to accept.

After a four-day trial, Judge Chung ruled in favor of AHP, finding that AHP had properly put back the portfolio and that Oak Harbor’s entities were not entitled to additional payments beyond recoveries net of AHP’s fees. While Judge Chung rejected AHP’s fraud in the inducement claim on the ground that the single element of reasonable reliance was not met, the ruling decisively affirmed AHP’s contractual rights and rejected Oak Harbor’s claims.

Corr Cronin’s trial team was led by partner Jeffrey Coopersmith and included partner Eric Lindberg, attorney Rachel Hay, paralegal Theresa Lapke, and legal assistant Megan Johnston. Partner Jeff Bone provided additional support.

Corr Cronin LLP is a leading boutique litigation law firm based in Seattle, Washington. Founded in 1999, the firm is known for its exceptional trial advocacy, strategic thinking, and relentless dedication to its clients’ success. Corr Cronin represents clients across a wide range of industries in complex civil litigation matters including commercial litigation, intellectual property disputes, product liability claims, and professional liability defense.