Richard Gaton and Edward Stiefel v. Health Coalition, Inc.
May 01, 2004
OUTCOME: Final judgment for $1.5 million
Successfully prosecuted clients' claims against former employer for non-payment of earned commissions. Also successfully defended clients against former employer's claims that clients violated non-comp...etition agreements and misappropriated trade secrets. Obtained ruling from court that bifurcated the case to proceed to trial on clients’ claims of non-payment of contractual commissions before continued litigation of former employer's claims. Prevailed at trial on clients’ contractual claims, nullifying the claims of the former employer. Clients were awarded damages of $454,000 in unpaid compensation, with interest, in addition to attorney’s fees and costs of $1,181,000.
Appeals
Great Harbour Realty and Investment Co. Ltd. v. Carnes
Jan 22, 2004
OUTCOME: Prevailed in obtaining reversal of $3 million judgment.
Great Harbour Realty and Investment Co. Ltd. v. Carnes, 862 So. 2d 63 (Fla. 4th DCA 2003)
Prosecuted an appeal on behalf of client seeking to overturn a judgment after jury trial handled by client's... prior counsel. Jury found corporate client to owe a former employee a severance payment of over $3 million. On appeal, judgment was reversed based upon evidentiary errors committed by trial judge.
Litigation
American Somax Ventures v. River Bridge Corporation, et al.
N/A
OUTCOME: Jury verdict for $8.6 million
Following a three and a half week trial a jury awarded Richman Greer's client, American Somax Ventures, $8.6 million on its claims of breach of contract related to its development efforts at River Brid...ge in Greenacres, Florida.
In 1984, American Somax contracted with River Bridge Corporation, the developer of River Bridge and a wholly owned subsidiary of Mobil Land Development Corp., to be the exclusive builder of single-family homes in River Bridge. American Somax was guaranteed its exclusivity through a right of first refusal contained in its contract. The contract also required American Somax to designate River Bridge Realty Corporation, another wholly owned subsidiary of Mobil Land, as the exclusive agent for the sale of its homes. In 1986, American Somax began the construction of homes in Windward Isle, a subdivision within River Bridge.
From the beginning, American Somax and the builders of the multi-family product in River Bridge experienced difficulties with both River Bridge Corp. and River Bridge Realty. These problems included failure to construct adequate amenities in the community, failure to properly advertise and market the development as a whole and the communities specifically, and failure to have a properly trained sales force. These problems caused slower than anticipated sales in the entire River Bridge development. While American Somax and River Bridge Corp. projected that the 43 homes slated to be built in Windward Isle would be completely sold within 24 months, after 2 years, only 15 homes were sold.
When the builders complained about River Bridge Corp. and River Bridge Realty's breaches of its obligations, they agreed to hire an independent marketing consultant to evaluate the project as a whole. River Bridge Corp. required that the builders pay half of the cost to bring in the consultant. When the consultant - The Greenman Group - completed its analysis, it confirmed the builders complaints and pointed to the deficiencies of River Bridge Corp. and River Bridge Realty as the chief cause of the dreadful sales. Thereafter, it took River Bridge over two years to start implementing the changes recommended in the Greenman report.
At the same time the community was underperforming, River Bridge Corp. repeatedly refused to honor American Somax's right of first refusal to acquire all other parcels within River Bridge that were designated for single-family development. Ultimately, over 650 single-family homes were built in River Bridge by other builders in breach of American Somax's contract rights.
At trial, the jury determined that River Bridge Corp. breached the right of first refusal and that the breach resulted in substantial lost profits to American Somax; which profits would have been realized on the construction and sale of the other 650 homes in River Bridge which American Somax would have built had River Bridge Corp. not breached the right of first refusal provision of the contract. The jury also determined that River Bridge Corp. breached its obligation to construct amenities and that River Bridge Realty breached its obligations under the exclusive listing agreement; these breaches caused American Somax to suffer lost profits in its efforts to sell homes in Windward Isle. In total, the jury awarded American Somax $8.6 million dollars in damages, the exact amount sought. As the prevailing party, American Somax is also entitled to recover its attorney's fees and costs, and is seeking substantial prejudgment interest.
