Edward Blackoff, Trustee of the Revocable Living Trust of Edward and Sasa Blackoff NNN Aventura Harbor 14 LLC v. Jeffrey S. Gurman, Damien P. Gallagher, Grubb & Ellis Securities Inc., Woodbury Financial Services Inc.
Published: May 7, 2011 | Result Date: Apr. 6, 2011 | Filing Date: Jan. 1, 1900 |Case number: 09-05396 Arbitration – $444,000
Court
FINRA
Attorneys
Claimant
Respondent
Ryan D. Harvey
(Lewis, Brisbois, Bisgaard & Smith LLP)
Neal S. Robb
(Keesal, Young & Logan)
Facts
Edward Blackoff and NNN Aventura Harbor 14 (claimants) entered into arbitration with Woodbury Financial Services Inc., Jeffrey Gurman, and Grubb & Ellis Securities Inc. (respondents), regarding an investment in an undivided tenant in common interest offered by NNN Aventura.
Contentions
CLAIMANTS' CONTENTIONS:
Claimants alleged breach of fiduciary duty, misrepresentations, negligence, breach of contract, and violation of California securities laws.
RESPONDENT'S CONTENTIONS:
Respondents denied the allegations, asserting various affirmative defenses. Grubbs & Ellis filed a counter claim alleging breach of contract and indemnity.
Damages
Claimants sought rescission of the investments or compensatory damages of $834,167, as well as consequential damages, disgorgement, payments on the loan, punitive damages, interest, and costs.
Result
Grubb & Ellis reached a confidential settlement payment with the Claimants. The arbitration panel found Gurman and Woodbury liable for $444,000 in compensatory damages, as well as interest, attorney fees, and costs.
Other Information
ARBITRATORS: Michael G. Clark, Melvin S. Feldman, Dean Schneider.
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