Breach of Contract: Business Relationship Fails 14 Claims and Counterclaims Asserted by Former Partners in Arbitration Proceeding; Client Awarded Return of Investment

We represented the defendant in this case for breach of contract. Our client was sued by his former business partners for alleged breach of a shareholders’ agreement that the parties had entered into, and on related claims.

Our client counter-sued the plaintiffs for breach of contract, and also asserted other related claims against them. The business relationship between the parties had lasted only four months. Because the parties’ shareholders’ agreement required arbitration of all disputes, the claims and counter-claims — 14 in all — were referred to arbitration. The plaintiffs sought unspecified damages against our client for losses related to the failed business relationship.

Our client requested a return of the money that he had invested in the business. Each side presented evidence to the arbitrator during a day-long hearing. The arbitrator found in favor of our client on all claims asserted by the plaintiffs, and also found that one of the plaintiffs had breached the shareholders’ agreement in question. Accordingly, the arbitrator dismissed the plaintiffs’ claims, and awarded our client the sum of $38,954, less $5,666 in management fees that he had previously received. This award represented a full return of the money that our client had invested in the business.

Accordingly, the arbitrator dismissed the plaintiffs’ claims, and awarded our client the sum of $38,954, less $5,666 in management fees that he had previously received. This award represented a full return of the money that our client had invested in the business.

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