Paul C. Turgeon v. Croghan & Associates, Inc. dba System One, and Raymond D. Croghan, individually
Published: Apr. 13, 1996 | Result Date: Mar. 8, 1996 | Filing Date: Jan. 1, 1900 |Case number: 95CV269 – $630,000
Judge
Court
Boulder District
Attorneys
Plaintiff
Defendant
Experts
Plaintiff
Thomas H. Brock
(technical)
Defendant
Jack Edward Blumenthal
(technical)
Facts
The plaintiff, Paul Turgeon, alleged that he was a 40% owner in the defendant, Croghan & Associates, Inc. dba System One, based on an oral agreement that was also memorialized in two memoranda. The plaintiff also alleged that the defendant, Ray Croghan, induced him by false representations to terminate his consulting business, to forego his share of the 1992 profits of the company and to forego part of his share of the sales price of the company when it was sold to Banc One. In November of 1994, Ray Croghan fired the plaintiff claiming unsatisfactory job performance. The plaintiff alleged that he was fired without cause and was entitled to 40% of the backend payment due from Banc One for the purchase of Croghan & Associates, Inc. The defendants claimed that the plaintiff was not an owner, was not entitled to a share of the profits or the front end payment and was not entitled to any of the "backend" payment, which defendants characterized as an incentive plan to be distributed among the executives still employed by Croghan & Associates, Inc. in 1998. The plaintiff brought this action against the defendants based on breach of contract, breach of fiduciary duty, fraud, securities fraud and breach of the covenant of good faith and fair dealing theories of recovery. The defendants were granted a directed verdict on the issue of misrepresentation with regard to the 1992 profits of Croghan & Associates, Inc.
Settlement Discussions
The settlement discussions were not disclosed.
Damages
The plaintiff alleged $200,000 in loss of income; $90,000 as the loss of his share of the front end payment; and $1,600,000 as the present value of his share of the incentive plan/"backend" payment.
Result
A petition for attorney's fees under the securities act is pending.
Other Information
The verdict was reached approximately one year and two months after the case was filed.
Deliberation
8-9 hours
Poll
not taken
Length
5 days
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