The Firm successfully defended Crompton Greaves (“CG”) against breach of contract claims brought by a former manager who sought to purchase the division of the company he managed in what became a failed management buyout. CG’s potential liability approached $10 million.
The case went to trial in September 2020 before Justice Roger McDonough in the New York State Supreme Court, Albany County. Based on the week-long trial and extensive post-trial briefing, the Court issued a decision and order dismissing the plaintiff’s claims and absolving CG of all liability.
The court battle lasted for years. Throughout it, the plaintiff contended that it was “ready, willing, and able” to perform its contractual obligations on closing day and that CG clearly and unequivocally refused to perform its obligations. The Court credited the arguments we presented and held that CG did not refuse to perform, let alone do so clearly and unequivocally as plaintiff was required to prove.
Moreover, the Firm proved that the plaintiff failed to perform its contractual obligations and, as a result, was not entitled to damages. Specifically, the plaintiff failed to perform its conditions precedent. It failed to deliver the purchase price, customer subcontracts, customer assignments, and equipment subleases, all of which the contract required. It also failed to obtain contractually required financing. Accordingly, the Court found that CG did not breach the contract because it did not have to perform until the plaintiff completed its conditions precedent.
The Firm is thrilled with this result and is proud to have helped another client resolve a significant business dispute. Our attorneys thrive on high-stakes business litigation and would be happy to discuss your litigation needs. You can reach us by calling 518-400-0955 or emailing firstname.lastname@example.org.
A link to the decision is below:
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