Matt Ray wins Federal Suit for Sun Gro Horticulture

Sun Gro Horticulture Processing, Inc. was represented by Matt Ray and another firm in a lawsuit filed in Dallas federal court by a former Sun Gro employee alleging age and sex discrimination under state and federal law. On February 11, 2016, a jury returned a unanimous verdict in favor of Sun Gro resulting in the entry of a judgment the next day dismissing all of the plaintiff’s claims, with no recovery against Sun Gro.

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Simon and Winikka recover $40 million bankruptcy settlement

Craig Simon and Dan Winikka represented the Qimonda Liquidating Trusts in Delaware bankruptcy court in pursuit of fraudulent transfer and breach of contract claims against Kingston Technology Company. The litigation involved complex issues related to business valuation, solvency and bankruptcy setoff and safe harbor principles. Ultimately, the trusts recovered more than $40 million in a settlement approved by the bankruptcy court.

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LFDS client, who was sued for in excess of $21 million, is found not liable by a Dallas Jury and verdict upheld by the Dallas Court of Appeals

LFDS client was represented by Alan Loewinsohn, in a lawsuit filed in Dallas District Court by two plaintiffs claiming in excess of $21 million dollars in damages arising out of oil and gas transactions, based on claims for breach of fiduciary duty and other related claims. On November 20, 2013, a Dallas Jury returned a unanimous verdict in favor of LFD client resulting in the entry of a judgment dismissing all of the plaintiffs claims, with no recovery against LFD client. On December 17, 2013, the trial court entered a judgment affirming the jury verdict. On May 12, 2015, the Dallas Court of Appeals affirmed the trial court’s judgment.

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LFDS Wins Jury Verdict that Physician Covenant Not to Compete is Unenforceable

On February 8, 2008, a Dallas County jury found that a physician covenant not to compete was not reasonable and imposed a greater restraint than is necessary to protect the good will or other business interests of the former employer. The trial lasted two weeks.

LFDS represented a physician, Dr. A. J. Applewhite, who contended that the terms of the covenant not to compete were unenforceable. The covenant was with his former employer, Wound Care Consultants (WCC). The parties practiced in the area of wound care and hyperbaric medicine. At the time of the trial, Dr. Applewhite was the Medical Director of the Wound Care and Hyperbaric Center at Methodist Hospital Dallas.

WCC contended that the covenant was enforceable, that Dr. Applewhite had breached the agreement, and that it was entitled to damages exceeding $1.2 million. The jury determined that WCC was entitled to no damage recovery from Dr. Applewhite.

The jury also found that WCC had not properly paid Dr. Applewhite for bonuses and awarded him $38,600. It also found that WCC committed the first breach of the employment agreement.

Both parties alleged breaches of fiduciary duty by the other. At a hearing on post-verdict motions, the District Court decided that neither party was entitled to recovery for fiduciary duty breach as a matter of law.

WCC is a professional corporation owned by Jeff Stone, D.O.

The restrictive covenant at issue included a time restriction of 18 months, a scope restriction of wound care, hyperbaric and aerospace medicine, and a geographic restriction of a 20 mile radius of various hospitals and facilities located primarily in Dallas County.

After the hearing on post-verdict motions, the parties entered a confidential settlement agreement.

Representing Dr. Applewhite were Jim Flegle and Carol Farquhar.

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International Arbitration Award for Hotel Management Company Involving Hotel Property in Mexico

On December 23, 2004, a panel of arbitrators awarded Allure Resorts Management, LLC over $2.1 million for lost profits in a dispute over the wrongful termination of a management services agreement for a luxury resort hotel in Mexico. Allure was represented by Alan Loewinsohn, Steve Wagner, and a team from the firm’s Dallas office.

Allure is a Delaware company in the hotel management business. The hotel property at issue in the dispute is located on the Mayan Riviera in Tulum, Mexico.

The arbitration award was against Sole Resort S.A. de C.V., the owner of the Mexico hotel. Sole is a company based in Italy and Mexico.

The arbitration was conducted under the authority of the International Centre for Dispute Resoltion and was held in Miami, Florida.

Allure contended that Sole breached the management contract when it terminated Allure as manager of the hotel in August 2003. Allure filed its demand for arbitration, pursuant to the terms of the contract, in November 2003. The arbitration hearing was held in November 2004.

In response to Allure’s claims for breach of contract , Sole had contended that Allure did not use commercially reasonable efforts to manage the hotel, misrepresented several material facts, including Allure’s preferred supplier relationship with a major tour operator, the Mark Travel Group, and that Allure suffered no damages. Sole further sought damages against Allure by way of a counterclaim.

The panel ruled that Sole breached the contract and owed damages to Allure. The panel denied all relief requested by Sole.

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Dallas jury rules in favor of LFDS clients in family partnership and estate dispute

On May 28, 2015, a Dallas jury rendered a take nothing defense victory for a family limited partnership and its general partner represented by Alan S. Loewinsohn and LFDS. The named defendants were sued by a family limited partner seeking to terminate the partnership and money damages for past conduct. The plaintiffs also sued a family member claiming she breached duties as an executor of the family’s estate. The jury answered all questions in favor of LFDS’s clients.

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Dallas Court of Appeals Accepts Flegle’s Expert Testimony on Attorney Duties

On April 8, 2008, the Dallas Court of Appeals rendered judgment on a Dallas County jury verdict. The jury had found in favor of McGuire, Craddock, Strother & Hale, P.C. (MCSH) on claims for breach of a fee agreement and a claim for fraudulent inducement against Transcontinental Realty Investors, Inc. (TRI) and RT Realty, L.P. (RT Realty). The jury awarded MCSH $298,630 in damages, representing the amount of fees and expenses billed but not paid.

TRI and RT Realty had counterclaimed for breach of contract, fraud, breach of fiduciary duty, negligence, and negligent misrepresentation. The jury found against TRI and RT Realty on all counterclaims.

Jim Flegle testified as an expert on behalf of MCSH.

After a hearing on post-verdict motions, the District Court granted the Motion for Judgment Notwithstanding the Verdict filed by TRI and RT Realty and ordered that both parties take nothing.

In reversing the District Court, the Dallas Court of Appeals noted in its opinion that Flegle testified that MCSH had not breached its fiduciary duties, that the attorney’s fees sought were reasonable and necessary (using the Arthur Andersen factors, among other things), and that the billing method was appropriate. The cause was remanded to the trial court to address additional attorney’s fees incurred in prosecuting the lawsuit and the appeal.

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Jim Flegle and Alan Loewinsohn named among “The Defenders” by The Dallas Business Journal in 2006

Jim Flegle and Alan Loewinsohn were chosen by The Dallas Business Journal as members of the 2006 class of “The Defenders” This elite designation recognizes “the most brilliant legal minds in the Dallas/Fort Worth area” — an honor bestowed upon only 15 lawyers for their notable work in commercial defense litigation. They were selected based on DBJ interviews of dozens of people in the Dallas-Ft. Worth legal arena, including general counsels, other lawyers, and judges. This was the inaugural class of corporate defense counsel. This award is co-sponsored by The Association of Corporate Counsel of America.

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Temporary Injunction for Developer in Dispute with North Texas Municipality

NuRock Development, LLC, represented by Jim L. Flegle and Carol E. Farquhar, obtained a temporary injunction against The City of Corinth, Texas requiring the City to issue certificates of occupancy for buildings comprising the Tower Ridge Apartments.

Tower Ridge is an affordable housing project supported by tax credits and subject to state and federal governmental regulation. NuRock is based in Atlanta, Georgia and has projects in several states. It routinely wins awards for its projects and services.

The Tower Ridge project was also the subject of a prior Fair Housing Act claim brought by NuRock against the City of Corinth in federal court. That action was settled, with the City agreeing to pay NuRock $120,000, among other things.

The dispute arose because the City refused to issue certificates of occupancy as the Tower Ridge buildings were completed. The City contended that the Tower Ridge Road constituted a hazard and was detrimental to the health, welfare, and public safety, of the citizens of Corinth and the Tower Ridge occupants. The City initiated the litigation by filing a petition seeking to halt construction at the project. NuRock filed a counter-request for a temporary injunction to force the City to issue certificates of occupancy.

After the commencement of an evidentiary hearing on the requested injunctive relief, the trial court determined that relief should be granted in favor of NuRock. The Court entered a temporary injunction requiring the City to issue certificates of occupancy as the buildings were completed and passed inspection, among other things.

The litigation is on-going.

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Dallas Court of Appeals Accepts Flegle’s Expert Testimony on Attorney Duties

On April 8, 2008, the Dallas Court of Appeals rendered judgment on a Dallas County jury verdict. The jury had found in favor of McGuire, Craddock, Strother & Hale, P.C. (MCSH) on claims for breach of a fee agreement and a claim for fraudulent inducement against Transcontinental Realty Investors, Inc. (TRI) and RT Realty, L.P. (RT Realty). The jury awarded MCSH $298,630 in damages, representing the amount of fees and expenses billed but not paid.

TRI and RT Realty had counterclaimed for breach of contract, fraud, breach of fiduciary duty, negligence, and negligent misrepresentation. The jury found against TRI and RT Realty on all counterclaims.

Jim Flegle testified as an expert on behalf of MCSH.

After a hearing on post-verdict motions, the District Court granted the Motion for Judgment Notwithstanding the Verdict filed by TRI and RT Realty and ordered that both parties take nothing.

In reversing the District Court, the Dallas Court of Appeals noted in its opinion that Flegle testified that MCSH had not breached its fiduciary duties, that the attorney’s fees sought were reasonable and necessary (using the Arthur Andersen factors, among other things), and that the billing method was appropriate. The cause was remanded to the trial court to address additional attorney’s fees incurred in prosecuting the lawsuit and the appeal.

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