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Contracts
Breach of Contract
Fraud

Hani Naim Saeed Sharaf v. Starbuzz Tobacco Inc.

Published: May 7, 2016 | Result Date: Feb. 10, 2016 | Filing Date: Jan. 1, 1900 |

Case number: 8:14-cv-00541-JVS-DFM Bench Decision –  Defense

Court

USDC Central


Attorneys

Plaintiff

Louis F. Teran


Defendant

Natu J. Patel
(Patel Law Firm PC)

Daniel H. Ngai
(Patel Law Firm PC)


Facts

Hani Sharaf sued Starbuzz Tobacco Inc.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff had been in the business of manufacturing and selling tobacco for hookahs since 1999. Plaintiff allegedly entered into a contract with defendant, a California corporation also in the same business, which promised plaintiff a 24.5 interest in defendant-company in exchange for his knowledge and expertise in the field. However, upon completing defendant's manufacturing facility, defendant terminated the business relationship and reneged on its promise. To date, defendant continued to refuse to recognize plaintiff as owner of 24.5 percent of its shares. As a result, plaintiff sued defendant for breach of contract and fraud.

DEFENDANT'S CONTENTIONS:
Defendant claimed the subject agreement had been mutually rescinded and was, thus, void. Even assuming the agreement was still valid, however, defendant claimed its performance was excused because plaintiff failed to perform his obligations under the contract, and moved for summary judgment.

Result

The court granted Starbuzz's motion for summary judgment.


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