TRAVERSE CITY, Mich.—A judge has ruled that 4Front Credit Union here will remain on the hook for more than $1.1 million owed to a former consulting firm, dismissing motions to overturn the ruling and launch a new trial.
Jurors in March decided 4Front Credit Union owed $1,132,124 in damages to Texas-based John M. Floyd and Associates Inc. after a three-day trial found the $488-million 4Front did not honor a contract that provided overdraft and courtesy pay services for Members Credit Union, the Record Eagle reported.
Members Credit Union merged with Bay Winds Credit Union to create 4Front in 2015.
4Front attorneys asked 13th Circuit Court Judge Kevin Elsenheimer to toss the decision in June, contending jurors relied on speculation and inexpert testimony to reach their decision. Moreover, 4Front CEO David Leusink argued JMFA’s figures were inaccurate and said the credit union only needed to pay $382,571, the Record Eagle reported.
“We’ve always believed that we owe money,” Leusink said, noting that he only disputes the total amount.
Elsenheimer, however, dismissed 4Front’s requests to overrule the decision and remand it back to jurors for a new trial. The dismissal upholds jurors’ decision to hit the credit union with the $1.13 million in damages — money that JMFA attorney Dean Greenblatt contended the credit union has owed for two years, the newspaper reported.
“There really wasn’t much left for 4Front to hang a hat on,” Greenblatt told the Record Eagle. “The interesting thing is that 4Front admits it owes nearly $400,000 even before we went to the jury, but they still haven’t paid a dime.”
JMFA attorneys argued the commission-sharing contract between MCU and JMFA would be extended through 2017 if the credit union shared the company’s services with another entity, according to court records. Greenblatt contended the credit union benefited from the services, but didn’t pay to use them.
4Front argued it owed JMFA a 16.2% commission on Members Credit union member accounts. JMFA argued it deserved 20% commission on Bay Winds accounts too, records state. Leusink told the Record Eagle that he’s disappointed with the decision and has not yet determined if the credit union will file a formal appeal.