Anthony P. DeMichele, along with co-counsel, Domenick Carmagnola of Carmagnola & Ritardi, LLC in Morristown, New Jersey, obtained a defense verdict for a closely held office products company and its chief executive officer in a breach of contract and conversion claim brought by the company’s former president. The lawsuit, initially filed in Philadelphia County but transferred to Bucks County where the company maintains its operations, claimed that the former president was entitled to the value of 10% stock ownership in the company, basing his right to the stock on a handshake deal he claimed he reached with the founder and chief executive officer of the company. As part of his claim, the former president argued that he paid $100,000 for the first 4% of the stock and that the remaining 6% was owed to him because his rights to obtain the remaining stock vested when he was terminated without cause. The former president contended that the acceptance of the payment created a contract for the sale of the 4% stock interest. The company and chief executive officer argued that the payment of the $100,000 was made through misrepresentations and fraud by the former president and that the company and chief executive officer were wrongfully induced into accepting the $100,000 payment. Further, the company and chief executive officer presented evidence that that the former president failed to perform his duties as president of the company, and as a result, his termination was for cause. As part of his claim, the former president presented expert witness testimony that the company was worth in excess of $70 million dollars at the time of his termination, and therefore, he was entitled to damages in excess of $7 million dollars. After a six day trial, the jury returned a unanimous defense verdict on all claims and did not award any damages to the former president.
