CDQ Prevails in Arbitration Involving Breach of Contract and Fiduciary Duty
CDQ attorneys Daniel P. Quigley, Kevin C. Moyer and Alejandra Curiel represented the minority members of an Arizona limited liability company in connection with their disputes with the majority/managing member of the limited liability company, which disputes arose after the limited liability company was awarded a valuable business license in mid-2022. Immediately after the license was awarded to the limited liability company, the majority/managing member abandoned the company and her minority co-members, and purported to secretly sell the license to a separate entity (in which she also held a majority interest) in exchange for millions of dollars of consideration to only her. As a result of the majority/managing member’s actions, arbitration resulted in which the parties brought competing claims against each other for breach of contract and breach of fiduciary duty.
Following presentation of the evidence, the arbitrator found the majority/managing member breached her contractual and fiduciary duties to CDQ’s clients. The arbitrator ordered the license to be returned to the Arizona limited liability company in which CDQ’s clients are members, expelled the majority/managing member from the company and awarded CDQ’s clients their reasonable attorneys’ fees and costs in the amount of approximately $600,000.