Plaintiffs suspect fraud in suit over sale of diabetic alert dog

David Yates Dec. 20, 2012, 2:57pm

Ryan and Tara McLeod recently filed a motion to invoke crime-fraud exception in their suit against Guardian Angel Service Dogs, who they claim sold them a diabetic alert dog and then demanded more money. 

The McLeods filed suit against Guardian Angel on July 2 in Jefferson County District Court, seeking declaratory judgment stating that they should not have to pay the company more than $20,000 for the sale of a service puppy.

The motion was filed Dec. 11 and seeks the release of privileged attorney-client information, suspecting that the defendant may have committed fraud and hired an attorney to help them to commit the crime.

The defendant responded to the motion to invoke the crime-fraud exception on Dec. 12, arguing the plaintiffs have not pleaded any cause of action for fraud.

According to the lawsuit, the McLeods’ son was born with Type 1 diabetes on Oct. 15, 2008. When it became clear their son’s difficult lifestyle would require special attention, the couple turned to Guardian Angel.

Diabetic service dogs are specifically trained to react to the chemical change produced by blood sugar highs and lows.

Guardian Angle offered to sell a diabetic alert dog for $20,000. In order to raise the money, the McLeods engaged in several fundraises, earning enough money for the dog and some extra cash for a separate account for the boy’s medical needs.

Three days after delivering the puppy, Guardian Angel demanded the couple sign a contract or be forced to return the puppy, which the couple did opt to sign.

“Defendant then demanded that all of the funds donated by the boy’s friends and family and community, including the amounts over and above the $20,000 that has already been paid to defendant, be given to defendant,” the suit states.

“Defendant has threatened litigation unless the McLeod family gives … all of the money in the separate account that is designated for the boy’s continuing medical needs.”

Court records further show that on Oct. 10 Guardian Angel filed an amended motion to dismiss, stating that McLeods agreed to litigate any disputes in Virginia, the company’s residence, when they signed the contract, court record show.

Guardian Angel is represented by attorney Patricia Chamblin of the Beaumont law firm MehaffyWeber.

The McLeods are represented by Mathew Morgan, attorney for the Beaumont law firm Reaud, Morgan & Quinn.

Judge Bob Wortham, 58th District Court, is assigned to the case.

Case No. A192-645

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