William Richert v. Ronald Marinaro, Jeffrey Dash
Published: Nov. 30, 2004 | Result Date: Aug. 25, 2004 | Filing Date: Jan. 1, 1900 |Case number: BC278360 Verdict – $14,836,000
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Neville L. Johnson
(Johnson & Johnson LLP)
Defendant
Experts
Plaintiff
Nevin Sanli
(technical)
Defendant
Russell Magnum III
(technical)
Facts
William Richert, a 61-year-old Hollywood writer, director and actor, started a business selling soy bean coffee branded "Incognito" with actor River Phoenix in the early 1990s. The business folded in the mid-1990s. In the spring of 2001, Richert told Ronald Marinaro about his history in the soybean coffee business. After Marinaro expressed interest in the idea of reviving the business, the two agreed that they would become 60/40 partners (in Richert's favor) in a new venture. After Marinaro brought Jeffrey Dash to help him set up the partnership, Marinaro and Richert signed the articles of organization for Incognito Coffee LLC on Aug. 1, 2001. Incognito returned to store shelves shortly thereafter. On Sep. 21, 2001, Marinaro locked Richert out of their Incognito offices. On Oct. 14, 2001, Marinaro launched a new soy coffee business called Rocamojo, using, among other things, the same product, the same advertising ideas and the same slogan as those used by Incognito. In addition, Rocamojo's company website credited Marinaro and his wife with developing the product. Rocamojo is now sold in almost 2,000 stores across the United States. Richert sued Marinaro and Dash for breach of contract, breach of fiduciary duty, breach of confidence and fraud. Richert claimed that Marinaro usurped the corporate opportunity that had been developed by Richert and Incognito Coffee LLC, and that he committed fraud in concealing from Richert that he intended to start a new company without Richert.
Settlement Discussions
Richert demanded $1 million plus 50 percent of the shares in Rocamojo, reduced to $800,000 plus 5 percent of the sales of Rocamojo for 20 years, reduced on the eve of trial to $600,000 plus 5 percent of the sales of Rocamojo for 20 years. Marinaro offered $100,000 on the eve of trial.
Damages
Richert claimed that Marinaro stole Incognito's corporate opportunity, and that the theft gave Rocamojo a substantial business advantage which prevented Richert from competing or continuing in the soybean coffee business. Richert based the value of his share of the corporate opportunity on Rocamojo's financial information, as prepared by the defendants. The defendants maintained that Rocamojo was not a lucrative business, but was in fact about to cease operations. Richert asked the jury to award $8 million in punitive damages against Marinaro and $100,000 against Dash.
Other Information
The judge denied motion for new trial and remittitur.
Deliberation
seven hours
Poll
12-0
Length
11 days
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