Money Matters, Simplified.
Lindsay Lohan in legal soup over unpaid bills
by Sophie Anderson - July 1, 2010 - comments
Lindsay Lohan has been accused of premeditated fraud by upmarket Los Angeles boutique which claims she racked up a bill of $17,000 between November 2009 and February of this year, but never paid.
The Mean Girls star has indeed been very mean for she has not paid for clothing, jewellery and other fashion accessories which she purchased from Tough as Nails Boutique.
The Los Angeles fashion, however, is not letting go and has sued the actress for the thousands of dollars in unpaid bills.
Paid only a pittance
According to suit, filed by the shop owners David Malvaney and Rodney Burns on Wednesday, Lohan was a regular visitor to the store between November, 2009 and February 2010.
During her shopping binge, she ran up bills totaling $17,060 (£11,374). Of this amount, she forked over only $180 (£120), alleges the complaint.
A $750 Mortimer T-shirt and Ron Donovan shoes are some of the many prized possession that the 23-year-old star Lohan acquired during this time, all at the expense of Tough as Nails.
The suit claims that the default in payment is premeditated and thus seeks to recover the balance payment as well as interest and other punitive charges along with legal costs.
The court documents read, "Plaintiff's reliance on Lohan's representations that her business manager would take care of it was justified due to the celebrity of Lohan and her well-known status as a movie actress with substantial income."
Attorney for Malvaney and Burns, Bill Crockett claimed that his clients never wanted things to come to such a pass. However Lohan’s delaying the payment for such a long time did not leave them with any choice at all.
Crockett said of his clients, “They started this business from scratch and that they have been successful in attracting an elite clientele does not mean they should be abused."
Premeditated default
Lohan "repeatedly" promised to pay but broke the commitment every time.
The suit claims that the default in payment is premeditated and thus seeks to recover the balance payment as well as interest and other punitive charges along with legal costs.
"Lohan repeatedly orally represented to (the owners) that they were not to worry. The true facts were that she had no intention of causing her business manager to pay the entire balance," the lawsuit states.
This is not Lohan’s first brush with law. The distressed starlet is scheduled to attend a hearing Tuesday in Beverly Hills on whether she violated probation in her 2007 DUI case.
The present suit has been filed in L.A. County Superior Court. Lohan’s attorney could not be contacted for comments.