In April 2013, Mr. Darnell obtained a compete defense for his clients in an eight day bench trial in which the plaintiffs had sought more than $7 million dollars on claims of fraud and breach of fiduci...ary duty. In addition to zero liability, Mr. Darnell’s clients were awarded more than $17,000 in costs.
Business
Skorheim v. Flanders
Feb 27, 2012
OUTCOME: $15.5 million win for my client
Represented a litigation trustee with claims against corporate officers and directors for illegal dividends and breach of fiduciary duty. The trustee alleged the corporate directors and officers breach...ed their duties of loyalty and good faith by putting shareholder interests above the best interests of the company, which caused company to squander hundreds of millions of dollars on the eve of an inevitable bankruptcy filing.
In their defense, the directors and officers argued that they did nothing wrong and did not breach their fiduciary duties, that they considered the best interests of the company at all times and that the company was not harmed as a result of anything they did.
In addition, their insurers claimed that there was no coverage for the claims at issue. Accordingly, the insurers filed a separate lawsuit claiming they were not obligated to provide coverage for any alleged damages or judgment that might be entered against the directors and officers. The insurers also argued that even if they were obligated to provide coverage, their exposure on any judgment was limited to whatever policy limits remained after paying all attorney’s fees, expert fees and costs of defense because they were “burning limits” policies. The insurers further claimed that fees and costs in defending the case would exceed $10 Million, which meant that there would be less than $15 Million in policy limits available if the case proceeded to trial.
The trustee’s case was set to proceed with a four week jury trial in July 2012 before Andrew J. Guilford in District Court in Santa Ana. On February 27, 2012, after attending three mediation sessions, defendants and their insurers agreed to pay $15.5 Million to settle all claims. Given the complexity of the issues, as well as the arguments over insurance coverage and the amount of “burning limits” that would be available, the trustee was extremely pleased with the end result.
Contracts and agreements
AMI v. Dominion
May 27, 2011
OUTCOME: $1,055,000.00 judgment for my client
Represented plaintiff in breach of contract action tried before a jury in federal court. Defendant raised counterclaims for fraud and breach of contract. Jury found in favor of my client on all claims... and rejected defendant's counterclaims in their entirety.
Wrongful death
In re: Otero
Jan 06, 2011
OUTCOME: Excellent settlement for my clients
In this action, I brokered a very favorable settlement for my clients, who were defendants in a wrongful death action arising out of unfortunate circumstances and presenting substantial risks of losing... everything they had. This settlement avoided these risks and brought closure to a very difficult matter for my clients.
Constitutional
Williams v. Barr, et al.
Aug 01, 2010
OUTCOME: Case against my clients dismissed
Defended 8 individuals and a community college in action involving alleged constitutional and due process violations. Court granted my client's motion to dismiss granted in its entirety.
Arbitration
Sun Life v. Nikta Andalib
Jul 08, 2010
OUTCOME: $695,000 arbitration award for my client
Represented Plaintiff in breach of contract case in JAMS arbitration.
Litigation
Confidential
Jun 30, 2009
OUTCOME: $1.6 Million policy limits settlement for my clients
Breach of contract and malpractice action against CPA firm stemming from employee embezzlement.
Securities and investment fraud
Confidential
Sep 01, 2008
OUTCOME: Multi-million dollar settlement for my clients
Represented Claimants with securities fraud and breach of fiduciary duty claims in FINRA arbitration.
Trusts
Confidential
Feb 08, 2008
OUTCOME: $150,000 win for my client
Represented trust beneficiary in action againt trustee for breach of fiduciary duty based on mismanagement of investment portfolio
Business
Confidential
Nov 16, 2007
OUTCOME: Lawsuit against my client dismissed for $0
Defended client in action by Plaintiff seeking tens of millions of dollars for alleged unfair competition, false advertising and antitrust violations. After more than 2 years of highly contested litig...ation, Plaintiff agreed to dismiss all claims for $0 after I filed a Motion for terminating sanctions against Plaintiff and its counsel based on discovery abuses.