Facts

Claimants Grand Avenue Capital Partners LLC and Grand Avenue Capital LLC (claimants) entered into a joint venture agreement with respondents Etech Securities Inc. and Nick Liang (respondents). Thomas Korzenecki and Michael Marevich are third-party respondents to the arbitration.

CLAIMANTS' CONTENTIONS:
Claimants alleged breach of contract, breach of modification to written joint venture projects, misrepresentation and nondisclosure, omissions of facts, and fraud.

RESPONDENTS' CONTENTIONS:
Respondents denied allegations, unless specifically admitted in their answer, and asserted various affirmative defenses. In its cross-claim, Etech alleged breach of contract, breach of implied covenant of good faith and fair dealing, as well as fraud, misrepresentation, negligence, unfair competition and conversion, and breach of fiduciary duty.

Damages

Claimants sought $334,536 for breach of modification of the written agreement on the CPIC Project as well as $503,124 for losses for breach on the Amsino Project, and $18,450 for breach of the Ethanol Capital Project, plus prejudgment interest. Claimants also sought 37.5% of fees received by Respondents from Surest Financial for the Jushi/Surest Financial project, as well as $843,750 for the breach of the covenant of good faith and fair dealing related to the same project. Claimants additionally sought $375,000 for fraud, punitive damages, costs, and attorney fees. Claimants sought a total of $1,031,924. Respondents sought a dismissal of all claims, and Etech requested $2,321,550 on its counterclaim.

Result

The panel of arbitrators found Etech and Liang jointly and severably liable, awarding claimants $995,300. The panel also awarded $45,360 to Etech, to be paid by claimants. The panel dismissed all other claims.