A recent arbitration involved the question of whether our clients had rightfully been terminated as manager of a multi-unit office property. In addition, the arbitrator was asked to decide whether our clients had committed securities fraud and breached certain fiduciary obligations owed to the investors who owned the Property.

Gordon + Holmes became involved in the case in Phase Two – after the arbitrator ruled the management agreement was properly terminated. The Phase Two trial was for the purpose of determining what damages, if any, had been caused by the termination.

Emboldened by this initial finding, our opposition began a quixotic journey to recover not only any damages that might have been caused by the termination, but also the entirety of their investment in the Property. The amount of their claimed Phase Two damages was approximately $26 million.
Ultimately, however, we were able to show that our opponents were not entitled to recover their entire investment. The opposition was awarded $250,000 for the breach of its management agreement– less than 1% of the damages claimed – and nothing for any claim which was defended by Gordon + Holmes. This was a major victory for our clients.