Houston Attorneys Win Arbitration for Client Against a Six Million Dollar Claim
Feb 16, 2022
Houston partner Cory Reed prevailed after a one-week arbitration, with an award for their client that included attorney’s fees and costs. The claimant was seeking over six million dollars in damages alleging that the Firm’s client breached fiduciary duty, committed fraud, aided and abetted, and engaged in conspiracy in conjunction with consulting services.
The claimant, who is an inventor and entrepreneur, sued the Firm’s client related to the “strategy and governance advice” rendered in connection with claimant’s buy-out of his co-member’s membership interest in their jointly owned company. The Firm’s client advised claimant in the negotiations with his co-member in setting up a new company and the services extended past the initial engagement and included management and de facto control of the new business operations.
In a 39-page interim award, the arbitrator found no credibility in claimant’s theory that a scheme existed to defraud claimant or that the Firm’s client breached a fiduciary duty owed to claimant.