Published: February 18, 2016
Pastore & Dailey LLC successfully represented a long standing hedge fund client that specializes in micro cap lending in two separate phases of litigation against a sophisticated commercial borrower. First, Pastore & Dailey secured a favorable settlement for its client as a result of filing an application for pre-judgment remedy, which sought to attach the assets of the defendant, who was an out of state resident. After the settlement agreement was breached over a year after it was executed, Pastore & Dailey’s investigation into the Defendants representations during the settlement negotiation process led it to conclude that the Defendants fraudulently induced our client into signing the settlement agreement. Pastore & Dailey LLC filed various motions for contempt and sanctions based on the fraudulent inducement. After two days of hearings and a plethora of briefs, the Court found that Pastore & Dailey LLC showed, by meeting the very high standard of clear and convincing evidence, that Defendants committed fraud in inducing our client to execute the settlement agreement. The Court ultimately awarded sanctions against Defendants in the form of attorneys’ fees, voided the settlement agreement, and allowed our client to continue to pursue its claims against Defendants.