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Real Housewives of Beverly Hills

Real Housewives of Beverly Hills Star Taylor Armstrong Suffers Setback in Legal Dispute

A Los Angeles Superior Court judge denied a request from Real Housewives of Beverly Hills star Taylor Armstrong’s attorney to throw out part of a settlement agreement between her late husband Russell and MyMedicalRecords.com. The segment in question (called a liquidated damages clause) dictated that $1.5 million be paid to either the Armstrongs or the company if one of the parties breached the agreement.

According to the Beverly Hills Courier, Russell fell into legal trouble with MMR after it was found out that he had allegedly misappropriated funds from investors and illegally sold his shares of the company, using the money for personal expenses. He was reportedly removed from the board and paid $250,000 to settle the dispute. The breach of contract ensued when Russell failed to identify the individuals he had sold company shares to.

Judge Frederick Shaller wrote in his four-page decision, “There is no evidence of the circumstances existing at the time the contract was made to enable the court to find that the liquidated damage clause is unreasonable.” The judge also wrote, “The motion must be denied since even if [Taylor Armstrong] is correct that the liquidated damages clause is unenforceable, this alleged unenforceability does not bar plaintiff’s claim and would not entitle defendant to a judgement in her favor.”

Taylor is fully responsible for answering the lawsuit since Russell’s tragic suicide last August. Her attorney maintains that MMR already had knowledge of at least one of the persons who purchased Russell’s shares, and that there was no clear documentation stating that the couple needed to disclose the names of the other buyers.

Source: Beverly Hills Courier

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05.1.2012 / 05:52 AM EDT by Tiffany Wan
Related: Real Housewives of Beverly Hills, Taylor Armstrong

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