SCM turns a defense case into a judgment of more than $340,000 for its clients

SCM attorneys successfully defended a lawsuit alleging theft of customers, resulting in the plaintiff owing SCM’s client hundreds of thousands of dollars. A trial team led by Robert B. Cummings, with primary assistance from Brenda Weinberg and Whitney Warnick, recently obtained a judgment of more than $340,000 in favor of the firm’s client.

The plaintiff filed a lawsuit against SCM’s client alleging breaches of fiduciary duties and related claims stemming from what the plaintiff believed was an unlawful theft of customers. Mr. Cummings successfully defended the client against a preliminary injunction and assisted the client with filing a claim for dissolution of the plaintiff corporation. The plaintiff elected to purchase company shares but claimed the plaintiff corporation was worth nothing. That led to a trial to determine the value of SCM’s clients’ shares in the plaintiff corporation, which resulted in the court determining the company was worth 7-figures – well over the plaintiff’s claimed negative valuation.

With two victories in an already 3-year saga, the SCM team tried the primary case to a jury over a 6-day period at the end of June 2021. Ultimately, the jury returned a no-cause verdict against the plaintiff corporation. More importantly, however, the jury returned a verdict finding that the plaintiff corporation is the alter ego of its majority shareholder and her husband. Thus, SCM is now pursuing payment on the more than $340,000 judgment against the corporation and its principals.