Facts

Pavel Fuks was a Ukranian businessman, investor, and philanthropist focusing on real estate, economic development, and Ukraine's energy security. Meanwhile, Yuri Vanetik was a resident of Orange County, California, who has referred to himself as the "master of selfies" since he regularly posts pictures of himself with politicians on social media. In the Spring of 2016, Fuks' close friend Gennady Kernes, then mayor of Kharkiv, Ukraine, introduced him to Vanetik, who hoped to be retained by the city of Kharkiv to promote its interests in the United States. After Donald Trump won the presidential election, Vanetik told Fuks that some of his close friends had received major appointments. In Fall 2016, through the WhatsApp messaging application, Vanetik claimed to Fuks that he could secure VIP treatment at Donald Trump's 2017 U.S. presidential inauguration. On November 18, 2016, Fuks responded that he would take two tickets for $100,000 each and asked what documents would be needed. Vanetik instructed Fuks to wire payment to a Citibank account for the "Hamilton Law Offices Client Trust Account" and to note that the wire was for "legal services." Vanetik then sent a copy of a purported contract and invoice from Odyssey Management LLC and asked Fuks to pay in accordance with that invoice. Fuks wired $200,000 to Odyssey Management LLC. On November 24, 2016, Fuks asked Vanetik when he would send the program of events for the package he had purchased. Vanetik responded that he should have some type of schedule next week and indicated that Vaentik would be at the inauguration on January 20th. On the morning of the inauguration, Fuks' car never came to pick him up. When Fuks and his party attempted to approach an access point for the inauguration, they were turned away because they did not have passes. Fuks ended up watching the inauguration at the hotel bar. Later that day, Vanetik sent a car to take Fuks and his guests to a party located in a midrise building overlooking the Capitol. Vanetik also invited Fuks and his friends to a party on inauguration day where two members of Congress, Representatives Ed Royce and Kevin McCarthy, were in attendance. During the event, Vanetik introduced Fuks to elected officials, including United States Senator Cory Gardner. Fuks asked Vanetik when would be a convenient time to discuss a refund. Vanetik promised he would return the funds within a week or two but never did. Fuks brought a complaint against Vanetik alleging promissory fraud, intentional misrepresentation, breach of contract, conversion, unjust enrichment, and violation of California's unfair competition law.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that he paid defendant $200,000 for a VIP event package for Donald Trump's 2017 U.S. presidential inauguration in Washington D.C., including prime seating, tickets to exclusive inaugural balls, and access to other special events, but it was a scam. Plaintiff maintained that when he requested a refund, defendant blamed a purported intermediary, Meadowood, whom he claimed he had contracted to provide the VIP inauguration package but failed to provide a copy of the contract or contact information for Meadowood. Thus, he maintained that defendant intended him to rely on his false promise for two VIP tickets and that plaintiff justifiably relied on defendant's intentional misrepresentations to his detriment. Moreover, plaintiff contended that the WhatsApp messages exchanged created a written contract between the parties that defendant intentionally breached.

DEFENDANT'S CONTENTIONS: Defendant maintained that the $200,000 payment was not related to the inauguration but was a partial payment for consulting services his company, Odyssey Management LLC, performed in April 2016 for plaintiff's close friend, Gennady Kernes. He also argued that he agreed to create a program of inauguration events for plaintiff as a courtesy when plaintiff agreed to start paying the outstanding Odyssey bill. Moreover, defendant alleged that the WhatsApp messages between him and defendant were fabricated and/or out of sequence and did not constitute a valid contract.

Result

The court found that Pavel Fuks was the prevailing party as to his breach of contract, promissory fraud, and intentional misrepresentation claims, and awarded him $200,000 plus pre- and post-judgment interest.