A lawsuit against Austin real estate investor Nate Paul and his firm World Class has been resolved.
Last month, Los Angeles-based law firm Gibson, Dunn & Crutcher filed a petition in Texas District Court in Travis County against Paul, his World Class Capital Group, his family members and other entities that he oversees for attempting to conceal assets. GDC alleged that Paul transferred more than $87 million from his World Class Capital Group to avoid paying his debt to the law firm, which World Class hired in 2016. GDC stated in court documents that Paul owed the law firm $1.06 million.
On April 12, GDC filed a satisfaction of judgment in New York County Supreme Court that showed World Class no longer owed money to the law firm. A spokesperson for World Class said the payment was accepted April 8, though it wasn’t clear when World Class made it.
Earlier this month, a company spokesperson told the Austin Business Journal that GDC had refused World Class’ multiple attempts to satisfy the judgment. The spokesperson said a countersuit was planned, though it wasn’t filed.
“GDC has also communicated they agree to dismiss all lawsuits related to the judgment now that they have filed this satisfaction. But should they fail to do so, World Class reserves all rights,” the spokesperson said in a statement. “It is a shame to the legal system that the threat of countersuit was needed to compel GDC to do what they should have done all along.”
Collin Ray and Mitchell Karlan of GDC served as counsel. Karlan confirmed the case was satisfied but that GDC had not previously refused payment from World Class.
“The judgment debtors never paid a penny on the judgment for years while we chased the debtor all over the country,” Karlan said in an email.
Paul has been in court over other matters. Entities tied to World Class filed suit this week in New York County Supreme Court against a mezzanine lender to stop the foreclosure on an office campus in Austin. Los Angeles-based Karlin Real Estate owns the shell company that’s being sued, an effort in which Paul alleges World Class wasn’t properly notified of the sale or default. World Class said in court documents that it hasn’t missed a payment and is refinancing the loans.
A spokesperson told The Real Deal that the foreclosure, previously scheduled for April 14, had been canceled by publication time.