In a significant legal victory, Reese Marketos secured a trial win for Dallas-based real estate developer Colin Dooley and his firm, Dooley Developments USA LLC. On October 10, 2024, a Dallas County jury found Stallion Funding, LLC culpable of deceit, employing a fraudulent scheme that trapped Dooley's firm into unfavorable 'loan-to-own' terms. These terms led to the wrongful foreclosure of a valuable townhome project in Old East Dallas, stripping Mr. Dooley, an Australian expatriate, of all the equity value generated by his development project.
The jury ruled that Stallion Funding, along with several associated entities, committed fraud, breached contract terms, engaged in usury, conducted wrongful foreclosure, and violated promissory estoppel. Recognizing their malicious intentions, the jury rejected Stallion Funding's $16-million counterclaim against Dooley, instead awarding Mr. Dooley over $6 million in damages. The dispute centered around the Skyline Terraces project, a collection of 25 condominium units initially valued at $13.55 million. Rather than earning a profit commensurate with their efforts, evidence revealed that Stallion Funding orchestrated a stratagem to siphon the project's equity value for personal gain.
Throughout a thorough weeklong trial, the jury was presented with compelling evidence. This included Stallion Funding's failure to adhere to a prior settlement agreement by neglecting to fund draw requests shortly after its completion and not aiding Dooley in executing the sale closures of Skyline Terraces units. These failures were critical issues in Dooley's original lawsuit. Additional proof indicated that Stallion Funding garnered $5 million in profits via a wrongful foreclosure, which refuted their claims of financial loss on the project. Examination of internal communications exposed that the loan amounts Stallion Funding pledged were never accessible.
Brett Rosenthal, co-lead counsel with partner Brad Gordon at Reese Marketos, commented on the outcome, saying, "Our client, Colin Dooley, invested nine years of dedication into this project. The defendants aimed to exploit him, but justice has no such blind spots in Texas. After extensive litigation, Colin's perseverance has been rewarded." Colin Dooley, CEO of Swiss Avenue Funding—a Dallas-based loan origination firm he founded in 2020 focused on restoring fairness in private real estate lending—expressed relief and readiness to continue his professional ambitions post-verdict.
The legal proceedings were held under the guidance of Visiting Judge Charles Stokes in the 193rd Civil District Court of Dallas County. Reese Marketos, established in 2011 as a high-stakes commercial litigation boutique, has a reputation for handling cases from considerable financial stakes to pivotal 'bet-the-company' disputes.
