Top Defense Results: FBP Investments LP v. Sea Prestigio LLC

The suit over a business loan started in state court. By the time it was finished, it had spurred related litigation in federal court and resulted in a counter suit and a $28 million award to the defendants. For good measure, a yacht was thrown into the mix.

The case began when James P. Baldwin, a prominent Orange County real estate developer, sued Broadcom Corp. co-founder Henry Nicholas for $25 million in damages for failing to deliver part of the loan.

But Nicholas' attorneys contended Baldwin didn't satisfy his end of the deal, and met the complaint with one of their own.

"Henry Nicholas fortunately has the financial capability to stop what appeared to us to be sophisticated efforts to renege on a very straightforward loan," said lead attorney Patricia L. Glaser, chair of the litigation department at Glaser Weil Fink Jacobs Howard Avchen & Shapiro LLP.

Following a two-week trial that concluded in June, a judge determined there was "no basis for any of [Baldwin's] claims," Glaser said. Her client was awarded $15 million plus interest and attorneys fees. FBP Investments LP et al v. Sea Prestigio LLC, 30-2010-00420336 (Orange County Super Ct. filed Oct. 27, 2010).

Because of the duration and intensity of the litigation, Glaser said, the $3.2 million in attorney fees was more than expected.

To enforce the judgement, Glaser and her colleague Jill Basinger filed suit in federal court to seize Baldwin's yacht, M/Y Triton. The federal court ordered the yacht seized by the U.S. Marshals Service. The $11 million it fetched was used toward paying the award.

- CHASE SCHEINBAUM

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