Esbrook P.C. Secures a $1.2 Million Award for Client in an Arbitration Trial Victory
Chicago, IL – Esbrook P.C. recently secured a complete victory on behalf of its client (the “Claimant”) in a three-day arbitration trial held in Chicago, Illinois. The Arbitrator awarded $1,229,704 in damages to Claimant, along with continuing monthly damages of $15,714 until the full dissolution of a certain Illinois limited liability company (“Company”), which was the subject of the arbitration.
The Claimant alleged egregious breaches of fiduciary duty and violations of the governing operating agreement of the Company. Specifically, it was alleged that instead of adhering to the Company’s operating agreement upon the passing of the other 50% owner of the Company, the Respondent wrongfully froze the deceased member’s trust out of both the operations and income distributions from the Company, and instead, diverted all income streams from the Company towards businesses owned by her family members, constituting a clear breach of her fiduciary obligations.
After carefully reviewing the evidence, including testimony from multiple witnesses and third parties, the Arbitrator ruled in favor of the Claimant, Esbrook P.C.’s client, finding that the Respondent violated her fiduciary duties and the operating agreement of the Company. As part of the ruling, the Arbitrator disassociated Respondent as a member and manager of the Company and awarded sole membership and managerial rights to Claimant. The Arbitrator further noted in the Award that during the course of the trial, Respondent was “not believable on any matter of significance.”
David F. Pustilnik, a partner in the firm’s Chicago office, tried the case on behalf of the Claimant, with assistance from associate Taras Garapiak.
About Esbrook P.C.
Esbrook P.C. is an elite Chicago litigation firm with a practice that understands the procedural and litigation dynamics unique to complex commercial litigation, mass tort, toxic tort, class action, environmental litigation, insurance litigation, disputes arising out of corporate transactions, and business law. With a team of 30 attorneys, the firm has offices in Chicago, Washington, D.C., and Delaware. Esbrook P.C. attorneys serve a diverse array of corporate clients and individuals nationwide.