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Contracts
Breach of Fiduciary Duty
Fraud and Misrepresentation

Timothy Cupps v. Paul Douglas Mendelson

Published: Dec. 1, 2007 | Result Date: Sep. 12, 2007 | Filing Date: Jan. 1, 1900 |

Case number: GIC857992 Verdict –  $548,000

Court

San Diego Superior


Attorneys

Plaintiff

Benjamin L. Pavone
(Pavone & Fonner, LLP)


Defendant

Richard J. Annen


Experts

Plaintiff

Richard M. Holstrom
(technical)

James Arabia
(technical)

Defendant

Thomas Goddard
(technical)

Facts

Plaintiff Timothy Cupps and defendant Paul Mendelson, both business owners, agreed to split defendant J&J Retail Services Inc., a retail services construction company. Under the agreement, plaintiff would take a 40 percent interest and defendant would receive 60 percent.

The plaintiff alleged that over the course of five years, defendant attempted to freeze him out of the company and cheat him out of his share of benefits. For example, defendant only issued 10,000 shares of stock to Cupps in order to defraud plaintiff out of his 40 percent interest in the company. Mendelson simply pretended he did not have a partner, in various public filings over the years, and misappropriated all of the profit.

The defendant denied the claims.

Damages

The plaintiff sought $155,000 in back profits, $233,00 in future damages, and $160,000 in punitive damages.

Result

The verdict was for $548,000.

Deliberation

1.5 days

Length

eight days


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