Vedder Price is pleased to announce a full defense judgment victory for its clients before the Appellate Court of Illinois, First Judicial District (the “Appellate Court”) arising out of a limited liability company unit redemption agreement.
Vedder Price, led by Chicago-based Shareholder Chad A. Schiefelbein, vigorously defended Edip Pektas, Inoa Ventures Management, LLC, Maestro International Cargo, LLC and Phillip Fornaro (collectively, “MIC”) against claims filed by Orange Pelican LLC (“OP”) which is owned by Arvind Ahuja, M.D. OP alleged claims breach of fiduciary duty, fraud by commission and fraud by omission, and sought an award of damages in excess of $30 million.
The Appellate Court affirmed the Circuit Court’s dismissal, with prejudice, of OP’s claims against MIC. The Appellate Court also affirmed MIC’s petition for attorneys’ fees and costs. In a lengthy written opinion, the Appellate Court characterized OP’s claims as an example of the “double liar” scenario and held that public policy does not allow a party to a contract to ignore or avoid its contractual representations and warranties.
The decision is important because it upholds the freedom to contract, enforces commercial contractual terms as written, and prohibits parties from attempting to use the judicial system to re-trade or avoid a binding deal.
“Our clients are extremely happy with the Appellate Court’s decision,” said Schiefelbein. “We believe this is the correct outcome for this matter and we are pleased as well that this case is now resolved.”
In addition to Schiefelbein, the Vedder Price legal team included Shareholder Arlene N. Gelman and Associate Jason B. Sobelman.
Original source can be found here.