OnPoint Analytics

Former U.S. District Judge Rules in Favor of Claimant after OnPoint Expert Testifies in Arbitration Hearing

OnPoint’s Director of Forensic and Financial Accounting, Christine Davis, recently testified on behalf of the Claimant in an arbitration hearing regarding a dispute between two partners who formed an LLC in the electrical apparatus and equipment, wiring supplies, and construction materials business. Claimant petitioned the Santa Clara Superior Court for an order compelling arbitration as a result of multiple actions against Respondent, who was the manager of the LLC. Claimant alleged breach of the LLC agreement, failure to account, diversion of funds, breach of fiduciary duty and wrongful termination.

In May 2017, Ms. Davis filed her expert report wherein she analyzed the accounting for the LLC and opined on the quality of such accounting, described evidence of comingling of funds with a separate LLC, and calculated undistributed profits allocable to the Claimant based on the presumption that he had been entitled to such profits but for the “wrongful termination.” During her arbitration testimony at JAMS, Ms. Davis provided evidence of her findings. The arbitrator, a retired U.S. district judge, ruled in favor of the Claimant, concluding that Claimant was wrongfully denied participation in the operations of the business. The Claimant has been awarded damages for unpaid partner profits pertaining to three years of operations, attorney’s fees, costs and expenses, as well as an option to purchase Respondent’s membership interest.