Facts

Two brothers, Harold Pemstein and Martin Pemstein owned a business (Pemma Corporation) operated from six buildings that the brothers owned in a separate partnership (HMS). In October 1998, Harold Pemstein resigned as Pemma's president. Martin Pemstein, in concert with his friend Philip McMeans and his uncle Dana Sherman, Pemma's attorney, excluded Harold not only from Pemma, but also from HMS. Harold Pemstein then sued to dissolve Pemma and HMS.

The first trial occurred in front of Judge David Brickner and lasted four months. Dana Sherman, who had served as Harold Pemstein's personal attorney, served as counsel for Martin Pemstein during the trials over Harold Pemstein's repeated objection. Four appeals resulted, and the Court of Appeals vacated Judge Brickner's orders denying the dissolution of Pemma, and remanded the case to the trial court for retrial.

In 2005 Peter Polos presided over a non-jury phase of the case. Polos disqualified Sherman as counsel. Polos, after evidence on the equitable claims found that Harold Pemstein dissociated from HMS and that it was dissolved effective January 1999. While conducting an accounting of HMS and Pemma, Martin Pemstein filed four more appeals, and filed a bankruptcy petition for Pemma and another for HMS.

In 2009, after dismissal of the appeals, and completion of the two bankruptcy proceedings, Harold Pemstein moved the court to try the remaining issue of an accounting between the Pemsteins concerning HMS and Harold Pemstein's charges that Martin Pemstein failed to properly account for rents and profits owing to Harold Pemstein. Judge Polos conducted a hearing and found this issue unresolved in the bankruptcy proceedings, and set the matter for trial. Judge Polos conducted the trial without a jury.

PLAINTIFF'S CONTENTIONS:
Harold Pemstein contended that he resigned from the presidency after long brewing hostilities erupted. He claimed that Martin Pemstein, in concert with his friend Philip McMeans and his uncle Dana Sherman, Pemma's attorney, excluded Harold not only from Pemma, but also from HMS.

Result

On Dec. 14, 2009, Judge Polos found Martin Pemstein breached his duty of care to Harold Pemstein in the collection of rent for HMS, and awarded Harold Pemstein damages. The judgment became final on March 15, 2010.

Other Information

FILING DATE: Aug. 6, 1999.