Local Jury Awards $2 Million Plus Future Considerations and Voids Joint Venture Agreement for Fraud in the Execution Committed by North American Dismantling Corporation (Monday, July 12, 2010)

R. Christopher Cataldo, a partner in the Southfield office of Michigan-based Jaffe Raitt Heuer & Weiss, P.C, announced today that his client, NTW Sales, LLC, has been awarded $2 million and future considerations by a Wayne County jury. Both companies are located in SE Michigan.

The case was brought in Wayne County Circuit Court and arose out of a joint venture between NTW and North American Dismantling Corporation where the two groups were to perform a combination metal recycling and demolition project in Berlin, New Hampshire. In the case, NTW claimed that North American committed fraud in connection with the execution of a joint venture agreement that changed the parties' agreement from a 50/50 split of profits to one giving North American 65% of the profits and control of the project.

At the conclusion of the four week trial, the jury found that North American had indeed committed fraud in connection with the execution of the written joint venture agreement, voided the document and enforced the parties' original verbal 50/50 agreement. The Jury also awarded NTW 50% of the remaining $4 million of proceeds from the project, which had been placed in a Court ordered escrow account.

The jury also found that NTW had the right to 50 percent of future revenue from the project which could be as much as $12 million, and found against all of NAD's counterclaim wherein it sought the full $4 million escrow and recovery of an additional $1.6 million that it claimed was profit wrongfully retained from the project.