Partners William Jones and Scott James Led the Successful Defense
(Denver, Colo., May 28, 2019) - Moye White LLP partners William F. Jones and Scott C. James won a complete defense verdict on April 18, 2019, following a two-week jury trial centered on the California Uniform Fraudulent Transfer Act (CUFTA) in Sacramento, California. More than $8 million was at stake.
In addition to the CUFTA implications, the trial also involved claims for intentional interference with a contract and successor liability, which were both proven false in favor of Moye White’s clients.
The defendants originally agreed to purchase five active vocational schools, which were owned and operated by a portfolio company of a Washington, D.C.-based private equity firm. The agreement stipulated the defendants would pay $1 for certain assets and take on certain liabilities. A non-operational campus, which came with a $100,000 monthly lease handled by a Sacramento-based landlord, was specifically excluded from the transaction. The private equity firm assured the defendants that the lease would be handled separately after the transaction was complete.
However, once the transaction was finalized, the private equity company alerted the landlord it would no longer be paying the monthly rent. The landlord then filed an $8 million lawsuit against the defendants for monetary relief and punitive damages.
If successful, the landlord’s lawsuit would have forced the defendants into immediate closure. The trial focused on whether the defendants had paid the reasonable equivalent value for each of the assets purchased, which in this case were the operational vocational schools. During the trial, each side presented lay and expert testimony on this issue.
At the conclusion of the trial, 11 of the 12 jurors voted in favor of Moye White’s clients, defeating each of the four claims. The jury found there was no intent to delay or defraud the landlord, that the defendants did pay the equivalent value, and that the defendants did not interfere with the lease.
Litigation paralegal Roxie Leff was a valuable member of the team, handling exhibits, trial presentation, and trial technology.
About Moye White LLP
Moye White LLP is a business law firm serving clients throughout the United States and internationally, with offices in Colorado and Georgia. The firm provides legal representation across a wide variety of transactional and litigation matters, offering strategic, business-oriented counsel to public, private, and governmental clients in complex business and real estate transactions and disputes. As one of the earliest national law firms to achieve B Corp certification, Moye White meets rigorous standards of social and environmental performance, transparency, and accountability. For more information, please visit moyewhite.com or contact Managing Partner Thomas List at 303-292-2900 or firstname.lastname@example.org.