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BEST DEFENSE IS A GOOD OFFENSE

Posted on August 11, 2015 by John Havins Posted in Case Blog, Havins

In this lawsuit a company, which had been our clients’ customer and its owner accused our clients of conspiring to defraud them, embezzling bank funds, stealing equipment, and interfering with the customer’s business for the purpose of taking over its customers and sales.  The former customer and its owner claimed damages exceeding $1,000,000.  In reality, the former customer filed the lawsuit in an effort to avoid having to pay the trade accounts that had been run up with our clients.  Along with asserting the available affirmative defenses, we counterclaimed against the former customer and its owner, including a breach of contract claim against the owner personally.  The counterclaim against the owner was based on a promissory note that the owner signed as president of the company, but that was signed and delivered to our client before the company was incorporated.  On the morning of the first day of trial, we successfully persuaded the court to exclude the evidence that would have arguably supported $800,000 of the damages that the former customer was seeking.  After trying the case to verdict, the court entered judgments in favor of our clients, with the judgment against the former customer being for $173,000 and the judgment against the owner being for $102,000.

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Breach of Contract Business Divorce Fiduciary Duty Non-Compete Partner Dispute Trade Secrets Vendor Dispute

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