Our attorneys have litigated a myriad of fraud and fiduciary duty issues. In addition, advice concerning issues of fraud and particularly fiduciary duty have been constant issues in the general business advice given to our extensive list of business clients over the years. It is not possible to adequately advise a business client without a firm grasp and understanding of these issues.
Representative matters include:
- Successfully represented LLC and majority owner in trial before the U.S. Bankruptcy Court voiding hundreds of thousands of dollars of real estate mortgages and decided an “important and determinative question of Mississippi limited liability company and property law for which there was no previously controlling Mississippi Supreme Court precedent”. Established that minority partner in LLC had transferred without authority or consideration all of LLC’s real estate assets to an LLC controlled by the minority partner who had then mortgaged the property. Fraud and breach of fiduciary duty established. Succeeded in having the Court set aside all of the subsequent real estate mortgages and restore free and clear ownership of LLC to original LLC. The case produced six (6) published decisions, all of which found in our clients’ favor.
- Of further import is the fact that the Kinwood decision was a very early decision nationally involving the authority of members and managers of limited liability companies and the liabilities of those dealing with them. The Kinwood decisions have been cited in several subsequent cases in other jurisdictions as persuasive authority.
- Successfully represented large North American heavy equipment parts distributor in securing arbitration verdict against international parts manufacturer that manufacturer had wrongfully breached its sales and financing agreement with distributor, awarding high six figure damages and securing favorable repayment terms on remaining amounts distributor owed manufacturer. Established that manufacturer had wrongfully and fraudulently terminated the contract, made demand for more far more money than it was entitled to, and that distributor had at all times performed its obligations under the long-term supply agreement with manufacturer. Successful decision saved client from insolvency or bankruptcy and preserved its future.
- Currently representing former business owner in fraudulent conveyance action in U.S. Bankruptcy Court for the Northern District in Mississippi wherein the trustee has charged that the buyout of the former owner was actually or constructively fraudulent as to creditors. The amount in issue exceeds $5,000,000.
- Successfully established claim of purchaser of service station facility for fraud and misrepresentation in sale of service station facility and obtained settlement and payment of damages and remediation of property from purchaser.
- Successfully represented client in action against prior attorney for malpractice and fraud connected with previous bankruptcy representation and subsequent criminal prosecution. Obtained settlement favorable to client.
- Successfully represented insurance agency against partner/acquired agency in fraud and misrepresentation claims in connection with acquisition of acquired agency. Terminated “acquired partner” from firm, obtained restitution available and successfully negotiated workout agreement with agency’s lender in allowing it time to recover from fraud of acquired agency/partner.
- Successfully negotiated discounted payoff agreement between borrower and bank reducing amount of indebtedness and obtaining release of real estate security claimed by bank.
- Successfully represented telephone answering service business in claim against AT&T for fraud and misrepresentation in sale of new equipment and services to answering services business. Obtained substantial agreed settlement sufficient to cover damages to answering service business.
- Successfully negotiated claim of manufacturer (settled favorably to client without litigation) for material misrepresentation and fraud against Canadian supplier of high-tech plasma cutter and subsequently successfully resisted claims of Canadian supplier’s bankruptcy trustee.
- Successfully obtained judgment against jeweler in fraudulent sale of jewelry to purchaser and succeeded in having judgment rendered non-dischargeable in jeweler’s bankruptcy case.
- Obtained substantial agreed settlement in favor of developer/manufacturer of new product from distributor who commissioned product and then fraudulently and tortuously sought to terminate development contract.
- Successfully represented two (2) securities brokers in actions by Mississippi Secretary of State in relation to charge of fraud and misrepresentation in sale of securities. Negotiated limited fine and minor sanctions and avoided any criminal liability.
- Successfully represented significant minority shareholder in bank holding company in charges of fraud and misrepresentation in “going private transaction” initiated by remainder of holding company’s board. Obtained significant price for minority shareholder’s stock in settlement of litigation.
- Successfully represented lender in action against borrower for fraud and misrepresentation. Secured appointment of a receiver of assets of borrowed pledged to lender and an effective litigation of those assets without interference by borrower.
- Successfully represented heavy equipment parts supplier against retail parts distributor, to whom supplier extended credit, when distributor fraudulently made an undisclosed bulk sale of its assets. Filed an involuntary bankruptcy proceeding against purchaser and subsequently obtained virtually full payment of sums due parts supplier.
- Successfully obtained summary judgment of dismissal of trustee of family trust from charged with having breached his fiduciary duty by conveying trust property to himself. Established that transfer of property was authorized and directed by settlor of trust.
- Successfully defended deceased’s estate in claims by beneficiary of will and divorce settlement agreement that deceased had breached his fiduciary duty in transferring certain property and fraudulently depriving beneficiary of sums to which she was entitled. Obtained agreed judgment of dismissal of claims in favor of estate and executor.
- Successfully defended minority partners and operators of a pay telephone business against claims by majority partner that minority partners/operators had defrauded majority partner. Obtained dismissal of claims and judgment for minority partners.
- Successfully represented purchaser at auction sale in criminal investigation by the Federal government into fraud and collusion at auction sale in connection with bankruptcy case. Succeeded in having the government cease to pursue purchaser.
- Successfully represented bankruptcy trustee in constructive fraudulent conveyance action against two businesses operating “leased departments” within major women’s department store, resulting in assets of “leased departments” being applied to debts of women’s department store.
Representative clients include:
- Central Bank of Mississippi
- Bryson & Company
- Crawler Parts, Inc., d/b/a Heavyquip, Kinwood LLC
- as well as other clients whose names cannot be disclosed due to client confidentiality.