High Stakes Cases
Some high stakes disputes include:
- Chapter 11 Bankruptcy Workouts
Two trademark lawsuits ( i.e., adversary actions of $2 million and $4 million respectively) excluded from a bankruptcy plan of $12 million in likely receipts were resolved and folded the settlement agreements into the prior plan, such that the successful claimant will receive virtually all of its unsecured claim, subject to Court approval.
- Deceptive consumer practices by an internationally known rental car company potentially harmed nearly half a million customers. Resolved by giving each customer the choice between substantial future discounts or a portion of a multi-million dollar pool of funds.
- The market recall of a food distributor’s products resulted in explosive national news stories and and investor losses of more than $4,000,000 in after tax loss. The accountant and business manager were sued for malpractice. Resolved through a confidential agreement that includes a prolonged stay and “defend and hold harmless” provisions relating to multiple participants. This avoided continuing business losses and the likely destruction of a national business through a loss sharing arrangement.
- Sexual harassment claims, two involving key executives of multi-national corporations and another involving a claim of serious improprieties by a former CEO of a respected charitable institution. Each was resolved to the satisfaction of all concerned.
- Current partners of a CPA firm wished to buy out the founding partner. Mr. Factor facilitated a buy-out for almost $1 million, with an intricate restructuring for tax purposes that draw upon Mr. Factor’s economics training at Harvard and his 40 years as a “deal maker” and an “agent of reality.”
- The theft of prescription drugs in transit between manufacturer and drug store distribution points resulted in criminal prosecution of the driver, but an insurance coverage dispute arose between two major carriers, and the insured parties. Resolved via negotiated disproportionate contributions between the carriers for a full payout of the $2,200,000 claim. This was notable because insurers seldom pay multi-million dollar claims when “inside job” criminal conduct occurs.
- Fired CEO of major private residential developer settled wrongful termination and contract claims with a debt-free transfer of properties suitable for development which had originally been purchased by the employer for more than $1,500,000. This was a creative, tax efficient solution which permitted groups with differing agendas to get fully meet their individual interests in terms of timing of investment results.
- A $16,000,000 put-and-call arrangement on minimum buy-out package that allowed the developer of five commercial buildings and the general contractor and leasing agent to each get a deal that met their vastly different market pricing expectations. This case was settled at the tail end of rising prices of the commercial real estate market.
- Mr. Factor has resolved numerous construction defect cases in multi-family residential, commercial and single family home developments, in which hundreds of thousands of dollars of damages were alleged. Settlement levels ranged from ‘nuisance values’ to levels between $225,000 and $1,000,000, depending on the facts of each case.
- $10 million-plus buyout of the name partner of an international law firm, with a multi-year payout and a restructuring of the partnership, with the result that the firm remains vibrant despite the payout of capital.
- Conducted a Structured Auction between former partners of a large ethnic food manufacturer and distributor to resolve corporate dissolution action. This result allowed two families in conflict to separate, with one remaining exclusively in charge of the food company, while the other family was able to pursue another business opportunity.
- A mid-sized downtown LA law firm split, after extended negotiations, into two firms, one of which moved to another trade area in Southern California. Both have experienced substantial subsequent successes, including several major victories on both sides of the aisle involving tens of millions of dollars.