Facts

Plaintiffs were limited partners in an apartment building controlled by the General Partner, a Limited Liability
Company, which was controlled by an individual defendant.

Plaintiffs filed suit against the General Partner of the limited partnership and the Managing Member of the General Partner after the building was sold, in connection with the proceeds of the sale.

PLAINTIFFS' CONTENTIONS:
Plaintiffs contended that defendants' LLC and its individual owner were grossly negligent breaching their fiduciary duty in handling the proceeds of the sale of the real property.

DEFENDANTS' CONTENTIONS:
Defendants denied taking any inappropriate actions with respect to partnership assets. Defendants contended that they acted with the plaintiffs' knowledge and consent, and that the sales proceeds were safely invested. Defendants claimed they acted in good faith and in the best interests of the partnership and the limited partners, that defendants bore no liability to plaintiffs, and that plaintiffs were not damaged as a result of any wrongful conduct by defendants.

Result

Judgment in the favor of plaintiffs, against the partnership, and the individual owner on an alter ego theory. Plaintiffs were awarded a total judgment of $2,181,663, which included interest, attorney fees, costs, and expert witness fees.

Other Information

Motion for attorney fees $494,211. Motion to Tax Costs $219,726. According to defense, defendants filed appeals of the judgment and post-judgment orders, and the case was settled. FILING DATE: Aug. 23, 2011.